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.
- The textiles industry (including dyed and printed) attracted FDI worth $ 4.03 bn from April 2000-June 2022
- India’s exports of textiles and apparel are expected to reach $100 bn in the next 5 years, growing at a CAGR of 11%
- To double the Indian textile and apparel industry size to $190 bn by 2025-26, 7 mega textile parks have been planned
- 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 technical textile market for synthetic polymer was valued at $7.1 bn in 2020 and is projected to reach $11.6 bn by 2027, growing at a CAGR of 7.2%, while the technical textile market for wovens is expected to grow at a CAGR of 7.4% to $15.7 bn by 2027, up from $9.5 bn in 2020
- 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)
Share in India's GDP
Textile exports share in overall exports
Direct employment generated
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
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The domestic textiles and apparel industry stood at $152 bn in 2021
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 ready made 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.
- 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 registered $ 41 bn in textile exports in CY 2021, with a CAGR (2.7) marginally higher than the global average
- The domestic industry is highly dependent upon Imports of apparel grade wool. This makes the domestic Industry dependent on imports. India is importing raw wool from many countries. The top four import markets are Australia, New Zealand, China and Turkey
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.
Cotton production supports 5.8 mn farmers and 40-50 mn people in allied sectors.
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. hand made carpet values $ 98.05 mn in the same period. Exports of Cotton Yarn/Fabs./Madeups, Handloom products etc values atnbsp;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
Production-Linked Incentive (PLI) Scheme in Man-made fiber and technical textiles with financial outlay of INR 10,683 cr under Atmanirbhar Bharat package
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GIS - based map displaying available infrastructure for setting up business operations in the state.
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Invest India closely works with
Government Ministry/ Department
- Apparel Export Promotion Council
- Clothing Manufacturing Association of India
- Confederation of Indian Textile Industry
- Indian Technical Textiles Association
- National Council of Textile Organizations
- Textile Associations of India
- Textile Machinery Manufacturers' Association
- Synthetic & Rayon Textiles Export Promotion Council (SRTEPC)
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