Introduction
Wool is an essential fibre for producing winter clothing, floor coverings and industrial usage. India, with the second largest sheep population (77.4 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 two 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.
The value of woollen items exported amounted to US$ 614 million in FY26 (April-July 2025), whereas in FY25 the value stood at US$ 1.83 billion.
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. For FY25, India exported wool carpets worth US$ 1.50 billion, woollen yarn and fabrics were valued at US$ 160 million and ready-made garments (RMG) stood at US$ 174 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 United States was the largest importer of woollen products from India in FY25, with exports valued at US$ 955 million, followed by the United Kingdom with US$ 120 million, Germany with US$ 103 million, Australia with US$ 66 million and Italy US$ 62 million.
During FY26 (April-July 2025), United States, United Kingdom, 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.
The ready-made woollen garments are mainly exported to the USA, UK, Germany, Netherland, Australia and Italy. These countries combined accounted for 74% of the total woollen garments’ exports from India during FY25.
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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