India is the world's second largest producer of textiles and garments. Abundant availability of raw materials such as cotton, wool, silk and jute and skilled workforce has made India a sourcing hub. The size of the Indian textile market in 2011 was US$ 89 billion; the market is expected to record a compound annual growth rate (CAGR) of 10.1 per cent over 2009-21.
Apparel, the largest contributor to textile market share, accounted for 69 per cent of the total market share in 2011 while textile contributed 31 per cent to the total share. The total exports of textile and apparel sector grew to US$ 33.2 billion in FY12 from US$ 17.6 billion in FY06, a CAGR of 11.2 per cent.
India's growing population has been a key driver of textile consumption growth in the country. A rising middle class has also aided demand growth for the sector; the size of the middle class is forecasted to rise to 550 million by 2025 from more than 50 million in 2011.
The Government of India (GOI) has allowed 100 per cent foreign direct investment (FDI) in the Indian textile sector through automatic route.
`The Indian textile industry is set for strong growth, buoyed by both strong domestic consumption as well as export demand. The organised apparel segment is also expected to grow at a CAGR of more than 13 per cent over a 10-year period creating enormous opportunities.