Introduction
India is among the top garment manufacturing countries in the world. The textile and clothing industry in the country is one of the biggest contributors to the economy with a 5% contribution to the gross domestic product (GDP). The apparel and textile industry in India is the second largest employer providing direct employment to 45 million people and 100 million people in the allied sector.
India is one of the largest jute and cotton producers in the world. About 95% of the global hand-woven fabric comes from India which is also the second largest silk producer in the world. India’s textile and apparel market size is expected to grow at a CAGR of 10% from 2019-20 to reach US4 190 billion by 2025-26.
Andhra Pradesh, Telangana, Haryana, Jharkhand and Gujarat are the top textile and clothing manufacturing states in India.
Export Trend
India witnessed a huge surge in exports during the year 2021-22. The overall services and merchandise exports reached an all-time high of US$ 669.65 billion during the year, which was a 34.5% increase from the same last year.
In March 2022, the export of cotton yarns and handloom products was US$ 1.34 billion; a 22% increase from the exports of March 2021. The export of man-made fabrics, yarn and made-ups in March 2022 was US$ 0.53 billion which was a 15% increase from March 2021.
Top Export Destinations
India exports textiles and apparel products to the US, UAE, the UK, Bangladesh, Germany, China, Spain, France, Italy, Netherlands, Saudi Arabia, etc. The US is the largest importer among all importing about one fourth of the total exports from India.
Government Initiatives
As the textile industry is crucial for India’s growth, the government of India has implemented several schemes for the growth of production and ease of trade. The Merchandise Exports from India Scheme (MEIS) grants duty credit scrips. The goods imported or domestically procured against them are freely transferable. The Amended Technology Upgradation Fund Scheme (ATUFS) and the Advance Authorization (AA) schemes are focused on strengthening and increasing the production of textile and apparel products in the country. In addition to these schemes, there are many more initiatives focused on better market accessibility and the development of small and MSME companies in India.
Government Body
Apparel Export Promotion Council (AEPC)
The APEC was formed in 1978 and is the official body of apparel exporters in India. The primary objective of the council is to promote, advance, increase and develop the export of all types of ready-made garments in India. AEPC supports the apparel industry by providing research and inputs on FTA, FTP and bilateral agreements.
RELATED SITES
Apparel House, Institutional Area
Sector - 44,
Gurgaon - 122003,
Haryana,
India
Tel.: +91-124-2708000/ 03
Fax: +91-124-2708004
Email: chairman@aepcindia.com
Website: www.aepcindia.com
