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. 2.3 % 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 stands as the 4th largest exporter of Textiles & Apparel in the world.

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 5th largest market in the world. 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.

  • Indian Textile industry to reach $250 billion market size by 2030.
  • The domestic apparel & textile industry in India contributed to 2.3% to the country’s GDP, 7% of industry output in value terms
  • India has a share of 5% of the global trade in textiles and apparel.
  • The export of cotton Textiles was $ 11.1 Bn with 30% share during 2022-23 .

For further details, please refer FDI Policy

  • Trained Artisan

  • Energy Intensive Textile Units

  • Functional Textile Parks

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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

India is the 5th largest producer of technical textiles in the whole world with a market size of nearly $24.3 billion, which we hope to build up to $300 billion when we turn 100 by 2047 .

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 $100 Bn by 2030.

  • 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 95 Lakh bales of raw jute in FY 2022-23.
  • The domestic textiles and apparel industry stood at $154 bn in 2022, growing at a CAGR of 10-12% to reach $350 bn by 2030.

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 312.03 lakh bales and estimated consumption is 316 lakh balesFurther, the domestic consumption of $110 Bn was divided into apparel at $80 Bn, technical textiles at $22 Bn and home furnishings at $8 Bn.While exports comprised of Readymade Garments at $16.2 Bn; Cotton textiles exports at $11.1 Bn; Man-made Textiles exports at $5.4 Bn; and others (including Handicrafts) at $4.0 Bn.

The Make in India initiative has successfully increased production capacity by 25%. Yarn production increased from 77.67 Lakh Tonnes in 2014-15 to 97.46 Lakh Tonnes in 2022-23. Fabric production increased from 374.54 Lakh Tonnes to 470 Lakh Tonnes in 2022-23. Apparel production increased from 1,753.2 Cr. Pcs to 2,200 Cr. Pcs in 2022-23.


  • 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.

  • Increased focus on technical textiles

    Due to growth of end-user industries such as automotive, healthcare, infrastructure and oil and petroleum

  • Abundance of raw material and availability of skilled manpower

  • Presence of entire value chains and large and growing domestic market

  • Competitive manufacturing costs and organized retail landscape & e-Commerce

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


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. Achievements: • Centre approves 64 applications under the Production Linked Incentive scheme for Textiles. • In the approved 64 applications, the proposed total investment is INR19,798 crore and projected turnover of INR 1,93,926 crore with a proposed employment of 2,45,362. • A total of 12 companies have proposed to set-up projects under the said Scheme in Madhya Pradesh, 7 companies in Uttar Pradesh and 4 companies in Rajasthan. • Investment to the tune of INR 2,183 crore approximately made till July 2023 under PLI Scheme.

  • INR 10,683 Cr

    Scheme Outlay

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Asked Questions

What is the time required for customs clearance for imports/exports ?

ICD (Inland Container Depots) Delhi-Time taken from arrival of cargo to filing of declaration by importer- 10 days 14 hours 11 minutes.

ICD (Inland Container Depots) Bangalore- 5 days 23 hours 36 minutes

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Government Plan / Vision for the Textile and Apparel sector. Is there a strategic vision / plan in place for the mid to long term? (i.e., export growth, employment, contribution to GDP, ecosystem development).

The Indian textile and apparel industry is expected to grow at 12% CAGR to reach US$ 250 Bn by 2030. India has a 4% share of the global trade in textiles and apparel. The industry (including dyed and printed) attracted foreign direct investment (FDI) worth US$ 4 Bn from April 2000-December 2022. The textiles sector has witnessed a spurt in investment during the last five years.

  • Contribution to GDP- 2.3%
  • Employment- 45 Mn, Employed Labor, 2nd Largest Employer after Agriculture
  • 100 percent FDI allowed
  • Market Size: 154 Bn

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Brief on the FTA (Free Trade Agreements) ?

India is currently in the process of negotiating FTAs with EU, Australia, UK, Canada, Israel and other countries/ region. Indian firms get an immediate price advantage when such duties become zero due to FTAs (free trade agreements). Indian firms also get a level playing field with firms from Vietnam and Bangladesh, whose products enter the EU and the US at zero duty.

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Which are some of the foreign companies which have Invested in India in Textiles?

Some of the foreign companies which have invested in India and have set up their manufacturing facilities in India are Avgol (Israel), Hyosung (Korea), Perennials (USA), Lindstorm (Finland), and Youngone (Korea), Nanliu (Taiwan), Kimberly Clark (USA) amongst others.

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Details on Brand Sourcing from India at different price levels ?

Price points are confidential information between the buyers and suppliers, however there are major International brands and retailers present in India who are sourcing on various price points, such as: H&M, Zara, Uniqlo, M&S, PVH, Decathlon, Hugo Boss, Bestseller etc.

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