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 major wool-producing states in FY24 were Rajasthan (16,013.50 thousand kg, 47.53%), Jammu & Kashmir (7,770 thousand kg, 23.06%), Gujarat (2,083.50 thousand kg, 6.18%), Maharashtra (1,601.28 thousand kg, 4.75%), and Himachal Pradesh (1,422.69 thousand kg, 4.22%). In terms of annual growth rate (AGR), the highest AGR was recorded by Punjab (22.04%), followed by Tamil Nadu (17.19%) and Gujarat (3.20%).
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, 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 FY24 stood at 33.69 million kgs. The species-wise contribution by Ewe, Ram/Wether and Lamb in the total wool production during FY24 was 71.13%, 14.54% and 14.33% 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$ 1.74 billion in FY24, whereas for FY25 (April – December 2024) the value stood at US$ 1.37 billion.
For FY24, India exported wool carpets worth US$ 1.34 billion, woollen yarn and fabrics were valued at US$ 192 million and Ready-Made Garments (RMG) stood at US$ 202 million.
For FY25 (April – December 2024), India exported wool carpets worth US$ 1.11 billion. The woollen yarn and fabrics exported from India were valued at US$ 121 million. The exports of Ready-Made Garments (RMG) stood at US$ 134 million.
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 was the largest importer of woollen products from India in FY24, with exports valued at US$ 853 million, followed by the UK (US$ 123 million), Germany (US$ 96 million), Italy (US$ 86 million), Australia (US$ 57 million), and UAE (US$ 45 million).
The major importer of woollen products from India during FY25 (April - December 2024), includes USA with exports valued at US$ 709 million, followed by the UK (US$ 91 million), Germany (US$ 82 million), Australia (US$ 50 million), Italy (US$ 46 million) and Netherland (US$ 37 million).
The woollen fabrics are mainly exported to Italy, the UK, Korea, Japan, and the USA. During FY25 (April - December 2024), these countries imported US$ 121 million worth of yarn fabrics from India. UK was the major importer during the same period at about 21.49% share of total exports.
The woollen carpets are majorly exported to the USA. During FY25 (April - December 2024), the country imported US$ 667 million worth of carpets from India, with a share of about 59% of total carpet exports. The top 7 woollen carpets export destinations (i.e., the USA, Germany, the UK, Australia, Netherlands, Sweden, and France) 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, France, Germany, Netherland and Italy. These countries combined accounted for 69% of the total woollen garments’ exports from India during FY25 (April-December 2024).
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. FY22 to FY26). 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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