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Textile Industry in India

May, 2013


India is the one of the world's largest producers of textiles and garments. The potential size of the Indian textile and apparel industry is expected to reach US$ 221 billion by 2021, according to Technopak's Textile and Apparel Compendium 2012.

Textile industry has made a major contribution to the national economy in terms of direct and indirect employment generation and net foreign exchange earnings. The sector contributes about 14 per cent to industrial production, 4 per cent to the gross domestic product (GDP), and 17 per cent to the country's export earnings. It provides direct employment to over 35 million people. The textiles sector is the second largest provider of employment after agriculture. Thus, the growth and all round development of this industry has a direct bearing on the improvement of the economy of the nation.

Market Size

The Indian textile industry is set for strong growth, buoyed by both rising domestic consumption as well as export demand. Abundant availability of raw materials such as cotton, wool, silk and jute and skilled workforce has made India a sourcing hub.

The most significant change in the Indian textile industry has been the advent of man-made fibres (MMF). India has successfully placed its innovative range of MMF textiles in almost all the countries across the globe. Man-made fibre production recorded an increase of 2 per cent during the year 2012-13.

Cotton yarn production increased by about 15 per cent during March 2013 and by about 14 per cent during the year 2012-13. Blended and 100 per cent non-cotton yarn production increased by 10 per cent during March 2013 and production increased by 3 per cent during the year 2012-13.

Cloth production by mill sector registered a growth of 19 per cent during year 2012- 13.

Cloth production by handloom and hosiery increased by 2 per cent and 14 per cent. The total cloth production grew by 1 per cent during March 2013 and by 4 per cent during year 2012-13.


The textiles sector has witnessed a spurt in investment during the last five years. The industry (including dyed and printed) attracted foreign direct investments (FDI) worth Rs 5,674.45 crore (US$ 1.04 billion) during April 2000 to February 2013.

Some of the major investments in Indian textile industry are:

  • Swedish retailer Rusta plans to import Indian textiles and handicraft worth Rs 200 crore (US$ 36.53 million) annually over 3-4 years
  • India plans to set up a textile training institute in Kaduna state, Nigeria, as per Dr Milan Sharma, Head, Africa Initiatives and Industry Research of IL&FS Cluster Development Initiative Ltd
  • Invista, owner of Lycra fiber brand, would give the Indian women perfect clothing solutions in the near future. Mr Avinash Chandra, Invista's marketing head (South Asia) said research in advanced stages is underway for ethnic leggings and shape wear to give a sculpted look to Indian women
  • British clothing brand Superdry plans to open 20 stores in India over the next five years, as per Mr James Holder, Founder, Superdry
  • American apparel-maker, Tommy Hilfiger plans to add 500 stores in India over the next five years as part of their expansion spree. Currently, Tommy Hilfiger operates 58 franchisee outlets and over 60 shop-in-shops in other department stores