Introduction
Wool is an essential fibre for producing winter clothing, floor coverings and industrial usage. India, with the third-largest sheep population (74.26 million) is the ninth-largest wool producer in the world. The organized sector of India consists of composite mills, combing units, spinning mills, carpet manufacturing units, woven and knitted garment units. The decentralized wool sector of India consists of power-looms, handlooms, knitting and hosiery, dyeing, etc.
The five major wool-producing states in the year 2022-23 were, Rajasthan (47.98%), Jammu and Kashmir (22.55%), Gujarat (6.01%), Maharashtra (4.73%), Himachal Pradesh (4.27%). They contribute 85.54% of total wool production in the country.
India produces three main categories of wool: Carpet Grade, Apparel Grade and Coarser Grade. These categories make up 85%, 5% and 10% of the total production for 2020-21 respectively. The wool industry of India provides employment to around 1.2 million people in the organized sector and about 2 million people in the associated industries. Around 0.3 million people are in the business of carpet weaving. The wool production of the country in 2022-23 stood at 33.61 million kgs. The species-wise contribution by Ram/Wether, Ewe and Lamb in the total wool production during the year 2022-23 was 72.17%, 13.92% and 13.91% respectively.
Wool Exports Trends
The wool sector of India is export oriented. The major types of wool products exported out of India are carpets, ready-made garments, woollen yarn, fabrics, blankets, knitwear, tops, shoddy fabrics, etc.
Woollen carpets have a maximum share of total woollen products exported out of India. On average, about 80% of the woollen products exported out of India are carpets. The value of woollen items exported amounted to US$ 1.69 billion in 2022-23.
For FY24 (April-January), India exported wool carpets worth US$ 1.11 billion. The woollen yarn and fabrics exported from India were valued at US$ 160 million during the same period.
For FY24 (April-January), exports of ready-made garments (RMG) stood at US$ 177 million showing a growth of 15.48% over same period during previous year.
Together, the ready-made garments, carpets, woollen yarn, and fabrics exports from India during April-January 2023-24 was US$ 1.45 billion. From 2017-18 till 2021-22, the total exports grew at a CAGR of about 3.7%.
Major Importers
India exports woollen yarn fabrics, hand-made carpets and ready-made garments to the USA, the UK, Italy, Germany, Australia, UAE, Netherland, Sweden, France, Japan, etc. The USA is a major importer of woollen products from India with 2022-23 exports at US$ 855.8 million. The UK and Italy were the next two large importers with 2022-23 exports valued at US$ 103.7 million and US$ 87.2 million. The value of exports to the Germany, Australia, and UAE during 2022-23 was US$ 82 million, US$ 61.2 million, and US$ 46.8 million, respectively.
The woollen fabrics are mainly exported to Italy, the UK, Korea, Japan, and the USA. During 2022-23, these countries imported US$ 128 million worth of yarn fabrics from India, a share of 62% out of the total yarn exports. Italy was the major importer during the same period at about 27.5% share of total exports.
The woollen carpets are majorly exported to the USA. During 2022-23, the country imported US$ 795 million worth of carpets from India, with a share of about 60% of total carpet exports. The top 7 woollen carpets export destinations (i.e., the USA, Germany, Australia, the UK, Netherlands, Sweden, and Italy) accounted for 81% of the total exports from India during this period.
The ready-made woollen garments are mainly exported to the USA, UK, UAE, Oman, Germany, France, Pakistan, and Afghanistan. These countries combined accounted for 75% of the total woollen garments’ exports from India during 2022-23.
Government Initiatives
Integrated Wool Development Pragramme (IWDP)
To develop the wool sector of India, the Ministry of Textiles formulated an Integrated Wool Development Programme (IWDP). This scheme was formulated to improve the country's competitiveness and quality of woollen products. Under IWDP, the ministry has allocated Rs. 126 crore (US$ 1.66 million) as a part of a five-year plan (i.e. 2021-22 to 2025-26). This scheme aims to harmonise the wool supply chain, link the wool industry and producers, and provide a marketing platform to the smaller woollen products manufacturers in India. Through this scheme, the Ministry of Textiles aims to improve the quality of woollen products by increasing wool testing, improve the tools available for manufacturing and providing skill development and capacity building capabilities to hand-made manufacturers.
The various components of this scheme had been allocated appropriate budgets. About 63% of the total Rs. 126 crore (US$ 1.66 million) budget has been allocated towards the Wool Processing Scheme (WPS), Human Resource Development and Promotional Activities Scheme and the Pashmina Wool Development Scheme (PWDS). Rs. 20 crore (US$ 2.5 million) have been allocated for the establishment and administrative expenses of the Nodal Agency and Rs. 12.42 crore (US$ 1.56 million) are reserved for the Wool Marketing Scheme (WMS) of the overall wool development scheme in India.
Governing Bodies
Ministry of Textile
The Ministry of Textile is the Indian government national agency dedicated towards planning, policy, and regulations, development, and promotion of the textile industry in the country. The apex body for textile has many statutory bodies, export promotion councils, autonomous bodies, research associations and registered societies.
The principal functional areas of the Ministry of Textile are, textile policy and coordination, cotton textile industry, jute industry, wool & woollen industry, export promotion, planning and economic analysis, financial matters, and information technology.
Central Wool Development Board (CWDB)
Established in 1987, the CWDB was formed to harmonize various diversified interests among different sectors of wool industry for integrated policy development of the industry.
The responsibilities of the board are the development of wool and woollen industry, marketing intelligence and products, price stabilization, testing of wool and woollens, product development and mainly advising the government in policy formations and coordination.
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