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Textile Industry in India

August, 2013


The Indian Textiles Industry has an overwhelming presence in the economic life of the country. Apart from providing one of the basic necessities of life, the textiles industry also plays a vital role through its contribution to industrial output, employment generation, and the export earnings of the country.

The sector contributes about 14 per cent to industrial production, 4 per cent to the gross domestic product (GDP), and 11 per cent to the country’s export earnings. It 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 strong 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. MMF production increased by 9 per cent during June 2013. The production increased by about 3 per cent during the year April-June 2013.

Cotton yarn production increased by 8 per cent during June13 and by 10 per cent during April- June 2013. Blended and 100 per cent non-cotton yarn production increased by 5 per cent during June 2013 and increased by 8 per cent during the year April- June 2013.

Cloth production by handloom, and hosiery increased by 3 per cent and 12 per cent respectively during June 2013 .Production by handloom, and hosiery sectors increased by 5 per cent and 12 per cent during April-June 2013. The total cloth production increased by about 1 per cent during June 2013 and by 2 per cent during Apr-June 2013.

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.


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 5,831.02 crore (US& 854.78 million) during April 2000 to May 2013.

Some of the major investments in Indian Textile Industry are:

  • Superdry plans to open 20 stores in India over the next five years, as per Mr James Holder, Founder, Superdry
  • The Aditya Birla Group has signed an in-principle agreement to buy the assets of Ontario-based Terrace Bay Pulp Mill for Rs 605 crore (US$ 88.70 million). The acquisition would be carried out through AV Terrace Bay (Canada), a special purpose vehicle (SPV) in which two group companies, Grasim Industries and Thailand-based Thai Rayon Public, would hold stake
  • Tommy Hilfiger plans to add 500 stores in India over the next five years as part of their expansion spree
  • Canclini Tessile plans to tie up with Tirupur-based Emperor Textiles to stitch its shirts in India. The equal joint venture (JV) with Emperor Textiles will set up a separate manufacturing unit in Tirupur to manufacture Italian fabric for domestic consumption