India - Knitting the future

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

The domestic textiles and apparel industry contributes 2.3% to India’s GDP and accounts for 13% of industrial production, and 12% of the country’s export earnings.

The textiles and apparel industry in India is the second-largest employer in the country providing employment to 45 million people. It is expected that this number will increase to 55 million by 2020.

  • FDI in the textiles and apparel industry has reached up to $3.1 bn during 2018-19
  • Exports in the textiles and apparel industry are expected to reach $300 bn by 2024-25 resulting in a tripling of Indian market share from 5% to 15%

For further details, please refer FDI Policy

  • %

    Expected sector CAGR (2019-2021)

  • %

    Share in India's GDP

  • %

    Textile exports share in overall exports

  • mn

    Employment generated


Largest producer of cotton & jute in the world


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

Apparel Industry in India

Second largest employment provider in India after agriculture

Industry Scenario

Textile & garments industry in India is expected to reach $ 223 bn by 2021 from $ 137 bn in 2016.

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 $140 bn in 2018 (including handicrafts) of which $100 bn was domestically consumed while the remaining portion worth $40 bn was exported to the world market.

Further, the domestic consumption of $100 bn was divided into apparel at $74 bn, technical textiles at $19 bn and home furnishings at $7 bn. While exports comprised of textile exports at $20.5 bn apparel exports at $16.1 bn and handlooms at $3.8 bn.

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

Investible Projects

Investment Opportunities in 

  • Projects


  • Opportunity

    $549.9 mn

  • Promoters


  • District


  • Private Projects


  • Govt. Projects



$282.26 mn

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$175 mn

On Board Oxygen Generation System for fighter aircraft

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$38.39 mn

Wing Drop Tanks for Mirage 2000 aircraft

State (s) Delhi

$27.15 mn

Inflatable Decoy

State (s) Delhi

Major Investors

Data On Map

Textile Industry

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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.

What are the subsidies under ATUFS?

The subsidies are as follows:
a) Stand alone spinning units – 2% Interest Reimbursement (IR) for new stand alone/replacement/modernization of spinning machinery.
b) For units having spinning capacity with forward integration having matching capacity in weaving/ knitting/processing/garmenting – 5% IR.
c) Weaving – 
i) 6% IR and 15% capital subsidy on brand new shuttleless looms or 30% Margin Money Subsidy (MMS) on brand new shuttleless looms for powerloom sector.
ii) 2% IR or 8% MMS on second hand imported shuttleless looms with 10 years vintage and with a residual life of minimum 10 years.
iii) For 30% MMS – capital ceiling caps of RS. 5 crore and subsidy cap of Rs. 1.5 crore would be adhered to for encouraging adequate investments by the MSME sector.
d) Processing – 5% IR and 10% capital subsidy for specified processing machinery. CETP/ETP will not be considered for support under TUFS.
e) Garmenting – 5% IR and 10% capital subsidy on specified machinery for garmenting units.
f) Technical Textiles (including non-wovens) – 5% IR and 10% capital subsidy on specified machinery required in manufacture on technical textiles.
g) Handloom and silk sector – 5% IR or 30% capital subsidy on benchmarked machinery.
h) MSMEs including jute sector – 5% IR or 15% MMS– subsidy ceiling to be $ 115,384.
i) Other segments – i.e. cotton ginning and pressing, wool scouring, combing and carpet industry, synthetic filament yarn texturising, crimping and twisting, viscose staple fibre and viscose filament yarn, knitting and fabric embroidery,  weaving preparatory machines, made-up manufacturing, CAD, CAM and design studio and jute industry – 5%IR
j) Investments like factory buildings, pre-operative expenses and margin money for working capital are eligible for benefit of reimbursement

Under the scheme only for apparel and handloom sector with 50% cap of total new eligible investment under RR-TUFS. Land is altogether excluded from eligible investments under TUFS. This benefit, however, shall not be available for textile units under the Scheme for Integrated Textile Park (SITP).

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.

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

What is Export Promotion & Quality Assurance under Ministry of Textile?

The Export Promotion & Quality Assurance Division carries out functions under various Sections of The Textiles Committee Act, 1963 as under:

1) Conducting technical studies in the textile industry.
2) Promotion of textile exports.
3) Establishing, adopting and recognizing standard specifications for textiles and packing materials.
4) Specifying the type of quality control or inspection needs to be applied to textiles.
5) Providing training on the techniques of quality control to be applied to textiles.
6) Providing for inspection and examination of textiles and packing materials used in the packing of textiles.
7) Advising on the matters relating to development of textile industry and providing for such other matters.
8) Classification of textiles under Harmonized Commodity Description and Coding System (HS).


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Authored By:
Ankita Sharma

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