Introduction
India has the third-largest sheep population in the world. Its sheep population is 74.26 million, the ninth largest wool-producing country. The annual wool production of the country is around 43-46 million kg and accounts for about 2% of the world’s total production.
India’s wool and woollen industry is the seventh largest in the world and one of the important sectors of India’s rural economy. The woollen industry employs 12 lakh people in the organised sector and 20 lakhs in the sheep rearing and farming sector. The wool and woollen industry in India comprises organised and decentralised sectors. The organised sector comprises composite mills, combing units, worsted and non-worsted spinning units, knitwear and woven garments units and machine-made carpet manufacturing units.
The decentralised sector consists of hosiery and knitting units, power loom units, hand-made carpets, druggets & namadahs units and independent dyeing and process houses. The major wool-producing states in India are Rajasthan, Karnataka, Telangana, Gujarat, Himachal Pradesh, Uttarakhand, Maharashtra, Uttar Pradesh, and Andhra Pradesh.
Export Trend
India exports multiple woollen products including tops, worsted yarn, ready-made garments, woollen yarn, wool tops, fabric, shoddy yarn, shoddy fabrics, blankets, knitwear, hand-made carpets, and machine-made carpets, etc.
The value of woollen items exported amounted to US$ 1.83 billion in FY25, whereas for FY26 (April-July 2025) the value stood at US$ 614 million.
For FY25, India exported wool carpets worth US$ 1.50 billion. The woollen yarn and fabrics exported from India were valued at US$ 160 million during the same period. Exports of ready-made garments (RMG) stood at US$ 174 million.
For FY26 (April-July 2025), India exported wool carpets worth US$ 488 billion. The woollen yarn and fabrics exported from India were valued at US$ 57 million.
The exports of ready-made garments (RMG) stood at US$ 69 million.
The overall trend of the exports for the last few years is given in the data below:
Major Importers
India exports wool and woollen products to many countries around the world. The major importing regions are the Middle East, Latin America, Southeast Asia and East Asia and the major importing countries are UK, Italy, USA, Korea, New Zealand, Japan, Kuwait, Bangladesh, Isreal, Germany. Italy, Korea, the UK, USA, Sri Lanka, Germany, and Australia are India’s major woollen yarn export destinations. Italy, UK, and the Korea imported yarn fabrics and made-ups from India worth US$ 35 million, US$ 32 million, and US$ 12 million during FY25, respectively. During FY26 (April-July) Italy, UK and the USA imported yarn fabrics and made-ups worth US$ 14 million, US$ 12 million, and US$ 4 million, respectively.
During FY26 (April-July), USA, UK, Germany, France and UAE were the top 5 readymade woollen garments importers from India with total imports worth US$ 6 million. The other major importers during that period were USA and UK at US$ 19 million and US$ 8 million, respectively.
Government Initiatives
During FY22, India unveiled a textile industry development plan with total allocation of Rs. 2,752 crore (US$ 348 million) for the development of handloom, textile handicrafts, wool, silk, power loom, jute sector. The plans also include various initiatives for technology upgradation, setting up textile parks, building research and development facilities and promoting the North-Eastern textile industry.
The Wool Marketing Scheme encompasses various sub-components aimed at facilitating increased procurement of raw wool at competitive prices, including the establishment of a Revolving Fund for marketing, creation of an e-portal for wool auctions, financial aid for forming Wool Producers Societies/SHGs, organizing buyer-seller meets, supporting infrastructure development in wool mandis/grading centers, and conducting Woollen Expos to boost marketing for artisans/weavers. The Revolving Fund allows Implementing Agencies to purchase wool, sell it to industries, and reuse the fund for subsequent purchases, ensuring sustainable support for wool growers. Notably, a budget allocation of Rs. 50.00 lakh (US$ 0.06 million) was earmarked for this initiative in FY23.
Integrated Wool Development Programme (IWDP)
The primary goal of this initiative was to stop the wool production decline in India and to improve the manufacturing processes. The objective of this programme was to improve the quality of wool fibre and establish service and research centres to improve the quantity and quality of import and export productions. The programme was also aimed at improving the marketing and branding promotion for the export promotion of wool. As a part of this scheme, a total of Rs. 126 crore (US$ 16 million) were allocated to various activities for the period FY22 to FY26.
For FY23, a budget allocation of Rs. 15.00 crore (US$ 1.80 million) was earmarked. As of October 31, 2022, expenditure stood at Rs. 2.12 crore (US$ 0.26 million), inclusive of Rs. 1.70 crore (US$ 0.20 million) allocated to the IWDP-Salary component, under the purview of implementation by the Central Wool Development Board (CWDB).
Some of the activities planned under this programme are enhancing the supply chain, linking the wool industry with producers, providing a marketing platform, establishing modern wool processing units, skill development and capacity building, etc.
The sub-components of IWDP are,
- Wool Marketing Scheme
- Wool Processing Scheme
- HRD and Promotional Activities Scheme
- Pashmina Wool Development Scheme
Governing Bodies
Central Wool Development Board (CWDB)
Some of the objectives of CWDB are to:
- Promote growth and development of wool and woollen products.
- Undertake arrangements for marketing and stabilizing the prices.
- Promote and set wool and woollen product standards.
- Quality control.
- Improve the existing markets and develop new uses of wool.
- Advise the central government in the matters related to wool and woollen industry development.
Wool and Woollens Export Promotion Council (WWEPC)
Established in the year 1964, WWEPC functions under the administrative control of the Ministry of Textile. Some of the functions and responsibilities of the council are as follows,
- To act as a registering authority for the members dealing in exports of all types of wool and woollen blended products.
- To act as an advisory body to the government of India for setting up policies and to act as an intermediary between the woollen industry and the government.
- To provide financial assistance to the member of the council to participate in the trades and exhibitions abroad.
- Promote and educate the member exporters about the schemes and benefits provided by the government.
- To organise trade expos and bring buyers and sellers together.
- Organise seminars and workshops for the member exporters to improve competitiveness and create consciousness.
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