Snapshot

India - Knitting the future

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

The domestic textiles and apparel industry contributes 5% to India’s GDP, 7% of industry output in value terms, and 12% of the country’s export earnings. India is the 6th largest exporter of textiles and 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 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 million people and 100 million 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.

  • FDI in the textiles and apparel industry has reached up to $3.75 bn till March 2021
  • India’s exports of textiles and apparel are expected to grow to $65 bn by 2025-26, growing at a CAGR of 11%
  • To double the industry size to $190 bn by 2025-26, 7 mega textile parks have been planned
  • The Indian technical textiles market was estimated at $20 bn in 2019-20 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 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.

For further details, please refer FDI Policy

  • %

    Expected sector CAGR (2019-2021)

  • %

    Share in India's GDP

  • %

    Textile exports share in overall exports

  • mn

    Direct employment generated

Explore Related Sub Sectors

One of the largest consumers and producers of cotton with the highest acreage of 126.14 lakh hectares under cotton cultivation

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

Textiles and garments industry is expected to reach $190 bn by 2025-26 from $103.4 bn in 2020-21.

The textiles and apparel industry in India has strengths across the entire value chain from fiber, yarn, fabric to apparel. It 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. The organized textile industry is characterized by the use of capital-intensive technology for mass production of textile products and includes spinning, weaving, processing, and apparel manufacturing.

The domestic textiles and apparel industry stood at $108.5 bn in 2019-20 of which $75 bn was domestically consumed while the remaining portion worth $28.4 bn was exported to the world market. 

The highest contributors to FDI in Textiles sector (including dyed, printed) for the period of April 2016 to March 2021 are Japan, Mauritius, Italy and Belgium.

Cotton production supports 5.8 million farmers and 40-50 million 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. 

Export of Cotton Yarn/Fabrics/Made ups, Handloom Products Etc. was valued at $1297.82 bn in August 2021 with a positive growth of 55.62% over exports of $833.95 bn in August 2020.

Export of RMG Of All Textiles was valued at $1235.11 bn in August 2021 with a positive growth of 13.99% over exports of $1083.53 bn in August 2020.

GROWTH DRIVERS

  • 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

arrowarrow

Production Linked Incentive (PLI) Scheme

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has given its approval to introduce the Production-Linked Incentive (PLI) Scheme in Textiles Products for Enhancing India’s Manufacturing Capabilities and Enhancing Exports – Atmanirbhar Bharat.

  • INR 10,683 cr

    Scheme Outlay

Industrial Land Bank Portal

GIS - based map displaying available infrastructure for setting up business operations in the state.

Major Investors

Data On Map

Latest In Textiles & Apparel

ReportAug 09, 2021

Legacy of Design; Motifs of Northeast Handloom and its Future

Read Now

Report

Legacy of Design; Motifs of Northeast…

Report

Investment Promotion Reforms in India

Report

Economic Survey 2020-21: Volume 1

Report

Economic Survey 2020-21: Volume 2

Regulations

Standard Operating Procedure (SOP) for…

FAQs

Frequently
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.

Was it helpful?

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.

 

Was it helpful?

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).

Note: 
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.

Was it helpful?

What are the government sponsored schemes in textile industry?

The Ministry of Textiles through the Textile Committee provides information on the various schemes available for the textile sector. The schemes are aimed at providing wholistic benefits and growth opportunities to this sector.

These schemes are:

  1. Power-loom sector.
  2. Technology upgradation.
  3. Cluster development programme/ integrated textile parks.
  4. Integrated Skill Development Scheme.
  5. Technical Textiles

For more information, click here

Was it helpful?

What are the government sponsored schemes in textile industry?

The Ministry of Textiles through the Textile Committee provides information on the various schemes available for the textile sector. The schemes are aimed at providing wholistic benefits and growth opportunities to this sector.

These schemes are:

  1. Power-loom sector.
  2. Technology upgradation.
  3. Cluster development programme/ integrated textile parks.
  4. Integrated Skill Development Scheme.
  5. Technical Textiles

For more information, click here

Was it helpful?

VIEW ALL

Invest India Timeline

2021
DRAG TO VIEW MORE

Disclaimer: All views and opinions that may be expressed in the posts on this page as well as post emanating from this page are solely of the individual in his/her personal capacity