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One of the nation's oldest sectors, the textile industry in India has been around and robust since it became the poster child for the Indian independence movement. The industry is incredibly diverse, ranging from capital-intensive, modern mills to hand-spun and hand-woven textiles. An estimated total of 4.5 crore people are employed in the textile sector in India, including 35.22 lakh people who work in the handloom sector. The production of textiles and apparel in India is second only to China. Compared to other major textile producers, India has a competitive edge in terms of skilled labour and production costs. The industry also has a significant manufacturing base of a variety of fibres and yarns, including both natural fibres like cotton, jute, silk, and wool as well as synthetic/man-made fibres like polyester, viscose, nylon, and acrylic.

A unique feature of the Indian textile industry is its tight ties to agriculture (for the supply of raw materials like cotton) and its cultural significance to the average Indian identity. A large part of the sector is made up of decentralised power looms, hosiery, and knitting industries that can produce a wide range of goods that are suitable for various market niches both domestically and internationally.

Capacity and Production

From the year 2019-2022, the Indian textile and apparel market is projected to increase at a 10% CAGR, totalling USD 190 billion by 2025–2026. By 2029, it is estimated that the Indian textiles market will be valued over USD 209 billion. Seven mega textile parks have been proposed to increase the size of the Indian textile and apparel sector to USD 190 billion by 2025–2026. Leading industry players strive to create sustainable products using recyclable natural resources .

India produces vast quantities of jute and cotton. The country is the largest cotton producing nation in the world. During the 2021–2022 cotton season, an estimated 362,18 lakh bales were produced of which 338 lakh bales were anticipated to be consumed domestically. By 2030, India's cotton production is expected to reach 7.2 million tonnes (or 43 million bales of 170 kg each), spurred by rising consumer demand.

The domestic garment and textile industry contributes 7% of industry output in value terms, or around 2.3% of India's GDP.

95% of the hand-woven fabric produced worldwide is made in India, the second-largest producer of silk. It is projected that the country will also sell over $16 billion in technical textile sales, (which has seen growing importance recently).


India accounts for 4.6% of global textile and clothing trade during the year 2021. 2.3% of the nation's GDP is made up of the textile and garment industries. The sector contribution towards the total domestic industrial production is an estimated 13% and its contribution towards total exports is about 12%. India exported USD 44.4 billion worth of textiles and apparel (including handicrafts) in FY22, a 41% YoY increase. The US is India's single largest market, and 27% of its total exports in FY22 were textile and apparel.

Major exported textiles and allied products (in USD Millions)

(US$ Million)

Sr. No. Commodity Apr-Jan 2021-22 Apr-Jan 2022-23 (P) % Share
1 Ready Made Garments Cotton incl Accessories 7103.32 7688.90 2.07
2 Cotton Fabrics, Made ups etc 6798.41 5740.55 1.54
3 Man-made yarns, fabrics, made ups etc 4606.30 4075.08 1.10
4 Cotton Yarn 4567.85 2151.67 0.58
5 Ready-made garments of other textile materials 2774.71 2908.51 0.78
6 Ready-made garments made of man-made fabrics. 2634.95 2509.98 0.67
7 Cotton Raw incl. waste 2320.20 585.18 0.16
8 Carpet Handmade (excl. silk) 1474.89 1115.03 0.3
9 Other textiles, yarns, fabrics made up articles 526.91 617.57 0.17
10 Man-made staple fibre 569.89 382.25 0.1
  Total Exports of Textiles and Allied Products 34921.6 29137.35 7.83

Foreign Direct Investments

India allows 100% FDI under automatic route in textiles industry. From April 2016 to March 2021, Japan, Mauritius, Italy, and Belgium will have contributed the most foreign direct investment (FDI) to India's textile industry (including dyed and printed textiles) .


Due to increased consumerism and disposable income, ever since numerous foreign brands, such as Marks & Spencer, Guess, and Next, joined the Indian market, the retail sector has expanded quickly. A significantly better 2HFY23 for the industry is predicted despite major obstacles in the short term due to a trend in cotton prices, an eased supply chain, and government initiatives to combat inflation. Because of strong domestic demand as well as foreign demand, the Indian textile industry's future appears bright.

India is pursuing several significant initiatives to grow its technical textile sector. Automotive textiles and technical textiles market is anticipated to grow from US$ 2.4 billion in 2020 to US$ 3.7 billion in 2027. In a similar vein, it is anticipated that the market for industrial textiles would grow at an 8% CAGR from US$ 2 billion in 2020 to US$ 3.3 billion in 2027. By 2029, it is anticipated that the Indian textiles market, as a whole, will be valued more than US$ 209 billion. The pandemic, saw an increase in demand for technical textiles used to make PPE gear and suits. The sector is being supported by the government through financing and equipment sponsorship. Growing family incomes, an expanding population, and rising demand from industries like real estate, hospitality, and healthcare will all contribute to the expansion of the textile industry.



  1. Production Linked Incentive Scheme (PLI) -
    1. The Production-Linked Incentive (PLI) Scheme in Textile Products for Enhancing India’s Manufacturing Capabilities and Enhancing Exports – Atmanirbhar Bharat-has received approval from the Union Cabinet, presided over by Prime Minister Shri Narendra Modi.
    2. The plan consists of two parts:
      • Part 1, wherein a minimum investment of INR 300 crore and a minimum turnover of INR 600 crore are needed to qualify for an incentive; and
      • Part 2 requires a minimum investment of INR 100 crore and a minimum turnover of INR 200 crore to qualify for an incentive.
    3. Out of 67 applications received, 61 applicants have been granted approval under the Production Linked Incentive (PLI) Scheme for Textiles.
    4. The government has authorised spending USD 1.44 billion (INR 10,683 crore) on Man-made fibre and technical textiles.
    Following the approval of 61 applications, the applicants are expected to invest a total of INR 19,077 crore, with a projected five-year revenue of INR 184,917 crore and proposed direct employment of INR 240,134 .
  2. Scheme for Capacity Building in Textile Sector (SAMARTH)-
    1. Under the broad policy guidelines of the "Skill India" initiative and in accordance with the framework approved for skilling programmes by the Ministry of Skill Development and Entrepreneurship, the scheme was developed to address the skilled labour requirement across the textile sector. The programme may be put into effect up to March 2024.
  3. Textile Parks-
    1. As of July 2021, 24 of these textile parks are open for business.
    2. Since 2014, 59 textile park projects have received approval under SITP and PPP, with up to 40% of the project cost coming from the government.
    3. Nirmala Sitharaman, Minister of Finance and Corporate Affairs unveiled a "Mega Integrated Textile" project as part of the Union Budget 2021–22. MITRA Park's plan is to develop seven textile parks with modern infrastructure, shared services, and R&D labs over the course of three years.
  4. National Technical Textile Mission:
    1. A budget of Rs. 1480 crore was granted to create the National Technical Textiles Mission for a period of 4 years (2020–2023–2024) in order to expand the use of technical textiles in the nation's flagship missions and programmes, including strategic industries.