India - Knitting the Future

India is among the world's largest producers of Textiles and Apparel

The domestic apparel & textile industry in India contributes approx. 2% to the country’s GDP, 7% of industry output in value terms. The share of textile, apparel and handicrafts in India’s total exports was 11.4% in 2020-21. India holds 4% share of the global trade in textiles and apparel.

India is one of the largest producers of cotton and jute in the world. India is also the 2nd largest producer of silk in the world and 95% of the world’s hand-woven fabric comes from India. The Indian technical textiles segment is estimated at $16 Bn, approximately 6% of the global market. The textiles and apparel industry in India is the 2nd largest employer in the country providing direct employment to 45 Mn people and 100 Mn people in allied industries. 

India has also become the second-largest manufacturer of PPE in the world. More than 600 companies in India are certified to produce PPEs today, whose global market worth is expected to be over $92.5 Bn by 2025, up from $52.7 Bn in 2019.

  • India’s exports of textiles and apparel are expected to reach $100 Bn in the next 5 years, growing at a CAGR of 11%
  • Textile industry to reach $250 billion business size by 2025
  • The Indian technical textiles market was estimated at $17.6 Bn in 2020-21 and grew at a CAGR of 10% since 2015-16
  • The domestic apparel & textile industry in India contributed to 12% of export earnings.
  • India has a share of 5% of the global trade in textiles and apparel.
  • The export of cotton Textiles was $ 17.2 Bn with 39% share registering a growth of 54% and 67% during 2021-22 over FY 2020-21 and FY 2019-20, respectively.

For further details, please refer FDI Policy

  • %

    Expected sector CAGR (2019-2021)

  • %

    Textile exports share in overall exports

  • Mn

    Direct employment generated

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One of the largest consumers and producers of cotton in the world.

Second largest manufacturer of PPE and producer of polyester, silk and fibre in the world

Second largest employment provider in India after agriculture

Industry Scenario

The domestic textiles and apparel industry stood at $152 Bn in 2021, growing at a CAGR of 12% to reach $225 Bn by 2025.

The textiles and apparel industry in India has strengths across the entire value chain from fiber, yarn, fabric to apparel. The Indian textile and apparel industry is highly diversified with a wide range of segments ranging from products of traditional handloom, handicrafts, wool, and silk products to the organized textile industry in India. The organized textile industry in India is characterized by the use of capital-intensive technology for the mass production of textile products and includes spinning, weaving, processing, and apparel manufacturing.

India’s readymade garment exports to see a CAGR of 12-13% and surpass $ 30 Bn by 2027.

The domestic textiles and apparel industry stood at $150.5 Bn in 2019-20. 

  • India’s Textiles Exports were highest ever in FY 2021-22, crossing US$ 44 Bn
  • India is a largest cotton producer (23%) in the world and has the highest area under cotton cultivation (39% of world area). Cotton plays a major role in sustaining the livelihood of an estimated 5.8 Mn cotton farmers and 40- 50 Mn people engaged in related activities such as cotton processing and trade.
  • India produced 90 Lakh bales of raw jute in FY 2021-22

The highest contributors to FDI in the Textile sector of India (including dyed, printed) from April 2016 to March 2021 are Japan, Mauritius, Italy, and Belgium. India scaled its highest ever exports tally at $ 44.4 Bn in Textiles and Apparel (T&A) including Handicrafts in FY 2021-22, indicating a substantial increase of 41% and 26% over corresponding figures in FY 2020-21 and FY 2019-20, respectively.

The estimated production of cotton in the country is 341.91 lakh bales and estimated consumption is 311 lakh bales. Further, the domestic consumption of $75 Bn was divided into apparel at $55 Bn, technical textiles at $15 Bn and home furnishings at $5 Bn. While exports comprised of apparel exports at $12 Bn; home textiles exports at $4.8 Bn; fabric exports at $4 Bn; yarn exports at $3.8 Bn; fiber exports at $1.8 Bn and others at $2 Bn. 

USA was the top export destination accounting for 27% share, followed by EU (18%), Bangladesh (12%) and UAE (6%). Exports of RMG of all Textiles values at $ 988.72 Mn in October 2022 and exports of Handicrafts excl. handmade carpet values $ 98.05 Mn in the same period. Exports of Cotton Yarn/Fabs/Madeups, Handloom products etc. values at

nbsp;719.03 Mn in October 2022. A total of 1,77,825 Weavers and Artisans are registered on Government-e-Marketplace (GeM).


  • Abundance of raw material

  • Presence of entire value chains

  • Competitive manufacturing costs

  • Availability of skilled manpower

  • Large and growing domestic market

  • Rising per capita income, higher disposable incomes and preferences for brands

  • Organized retail landscape & e-Commerce

  • Increased focus on technical textiles due to growth of end-user industries such as automotive, healthcare, infrastructure and oil and petroleum

  • Presence of world class infrastructure

    India’s production is centered on cotton products, which reduces its chances to take China’s current position as the world leader in textile manufacturing.


Production Linked Incentive (PLI) Scheme

Government has launched the Production Linked Incentive (PLI) Scheme with an approved outlay of INR 10,683 crore to promote production of MMF Apparel, MMF Fabrics and Products of Technical Textiles in the country to enable Textiles Industry to achieve size and scale and to become competitive. Applications under PLI Scheme for Textiles were received through web portal from 01.01.2022 to 28.02.2022. A total of 67 applications have been received. Selection Committee chaired by Secretary (Textiles) has selected 64 applicants under the scheme. 56 applicants have completed the mandatory criteria for formation of a new company and approval letters have been issued to them. Investment to the tune of INR 1536 crore approximately has been made so far. Quality Control Order wrt VSF is under issuance.

  • INR 10,683 Cr

    Scheme Outlay

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Asked Questions

What are the ATUFS benchmarked machineries?

TUFS benefit is available for TUFS benchmarked machinery covering the following activities:-
a) Cotton ginning and pressing.
b) Silk reeling and twisting.
c) Wool scouring, combing and carpet industry.
d) Synthetic filament yarn texturising, crimping and twisting.
e) Spinning.
f) Viscose Staple Fibre (VSF) and Viscose Filament Yarn (VFY).
g) Weaving, knitting and fabric embroidery.
h) Technical textiles including non-wovens.
i) Garment/design studio/made-up manufacturing.
j) Processing of fibres, yarns, fabrics, garments and made-ups.
k) Production activities of Jute Industry.

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What are the subsidies under Amended Technology Upgradation Fund Scheme (ATUFS)?

Capital Investment Subsidy is available under ATUFS under this scheme for eligible segments @10%/ 15% with an upper limit on investment amount.

For more information, click here.


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What is certificate of exemption and endorsement of GSP in Export Promotion & Quality Assurance?

An exemption certificate is issued to enable quota/duty free entry of the eligible items of Handloom origin at the importing end. GSP certificates (Form A) is issued for the eligible items for the following tariff preference giving (donor) countries:

Australia, Canada, Japan, New Zealand, Norway, Switzerland, Turkey, United States of America (USA), Republic of Belarus, Russian Federation, and European Union.

The European Union includes 28 countries Viz. Austria, Belgium,Czech Republic, Croatia, Cyprus, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands (Holland), Republic of Bulgaria, Romania, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden and United Kingdom (UK).

1) For Australia, the main requirement is exporter’s declaration on the normal commercial invoice. Form A accompanied by the normal commercial invoice is an acceptable alternative, but official certification is not required.

2) In case of Canada and New Zealand, Official Certification is not required.

3) The United States does not require GSP Form A. A declaration setting forth all pertinent detailed information concerning the production or manufacture of the merchandise is considered sufficient only if requested by the district collector of the Customs.

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What is Amended Technology Upgradation Fund Scheme (ATUFS)?

ATUFS is set up to incentivise production and employment in the garmenting sector. The scheme would facilitate augmenting of investment, productivity, quality, employment, exports along with import substitution in the country.

For more information, click here.

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What does the MSS Scheme stands for?

MSS stands for Marketing Support & Services scheme. The Scheme has been introduced to promote and provide financial assistance to artisans to participate in domestic and international craft exhibitions/seminars in metropolitan cities/state capitals / places of tourist or commercial interest/other places.

For more information, click here.

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