Table of Contents
Introduction: Textile Industry in India
India is one of the world’s largest producers of textiles and apparel, playing a crucial role in the global textile market. The industry significantly contributes to the nation’s economy, providing employment to millions and driving substantial export revenues.
Textile Industry in India at a Glance
Economic Contribution
- India’s textile and apparel industry contributes approximately 2.3% to the country’s GDP, 13% to industrial production, and 12% to exports.
- India holds a 4% share in global trade in textiles and apparel.
- The domestic industry is expected to reach $250 billion in production and $100 billion in exports by 2030.
| GDP Contribution | 2.3% |
| Industrial Production Contribution | 13% |
| Export Contribution | 12% |
| Global Trade Share in Textiles and Apparel | 4% |
Textile Industry in India
Employment
- The textile and apparel industry is the second-largest employer in India, providing direct employment to 45 million people and another 100 million in allied industries.
- The sector’s growth is crucial for employment generation, particularly in rural areas.
Exports
- India’s textile exports are expected to reach $65 billion by FY26, growing at a 10% CAGR to $190 billion by 2025-26.
- The sector holds a 10.33% share in India’s overall export basket for 2021-22.
- The U.S. is the top export destination, followed by the European Union, Bangladesh, and the UAE.
| Export Target | Value |
|---|---|
| FY26 Textile Export Target | $65 billion |
| 2025-26 Projected Export | $190 billion |
| Share in India’s Export Basket (2021-22) | 10.33% |
| Top Export Destinations | Percentage Share |
|---|---|
| USA | 27% |
| European Union (EU) | 18% |
| Bangladesh | 12% |
| UAE | 6% |
Man-Made Fibres and Technical Textiles
- The global market for man-made fibers is growing, driven by factors such as increasing use in technical textiles, changing consumer trends, and rising demand for sportswear and fashion wear.
- India is focusing on expanding its MMF sector through the Production Linked Incentive (PLI) Scheme, aiming to enhance the production of MMF apparel, fabrics, and technical textiles.
| MMF Segment | Production Share (Volume Terms) |
|---|---|
| Polyester | 77.5% |
| Viscose | 16.5% |
| Global MMF Market Ranking | 6th |
Production Highlights
India is a leading producer of various natural and synthetic fibers:
- Cotton and Jute: India is among the largest producers globally.
- Silk: India is the second-largest producer of silk, contributing to 95% of the world’s hand-woven fabric.
- Man-Made Fibres (MMF): India is the second-largest producer of polyester and viscose. The MMF industry accounts for about 94% of the total man-made fiber production, with polyester dominating the segment.
FDI in the Textile Sector
India allows 100% Foreign Direct Investment (FDI) through the automatic route in the textile and apparel sector. The industry has attracted over $4.47 billion in FDI from April 2000 to March 2024. There are significant investment opportunities, particularly in MMF textiles, where India ranks sixth globally in exports.
Read More: FDI in India