Last Updated: July 31, 2020
Last Updated: June, 2020
The textiles and apparel industry can be broadly divided into two segments - yarn and fibre and processed fabrics and apparel. The domestic textiles and apparel market was estimated at US$ 100 billion in FY19. The textile industry has around 4.5 crore workers including 35.22 lakh handloom workers all over the country. In FY19, growth in private consumption was expected to create strong domestic demand for textiles. # Growth in demand is expected to continue at 12 per cent CAGR to reach US$ 220 billion by 2025.
Cotton production in India reached 36.04 million bales in FY20*. During FY19, production of fibre in India stood at 1.44 million tonnes (MT) and reached 1.60 MT in FY20 (till January 2020), while that for yarn, the production stood at 4,762 million kgs during same period.
India is the world's second largest exporter of textiles and clothing. Increased penetration of organised retail, favourable demographics, and rising income level are likely to drive demand for textiles. Cloth production stood at 63.34 billion square meters in FY20 (till January 2020).
India’s textiles and apparel export is expected to increase to US$ 82.00 billion by 2021 from US$ 22.95 billion in FY20 (till November 2019).
Rising Government focus and favourable policies is leading to growth in the textiles and clothing industry. The Ministry of Textiles is encouraging investment through increasing focus on schemes such as Technology Up-gradation Fund Scheme (TUFS). In Union Budget 2020-21, the Government has allocated Rs 761.90 crore (US$ 109.01 million) for Amended Technology Upgradation Fund Scheme (A-TUFS). The Cabinet Committee on Economic Affairs (CCEA), Government of India has approved a new skill development scheme named 'Scheme for Capacity Building in Textile Sector (SCBTS)'. The Government announced a special package to boost export by US$ 31 billion, create one crore job opportunities and attract investment worth Rs 80,000 crore (US$ 11.93 billion) during 2018-2020. Cumulative FDI (Foreign Direct Investment) inflow in the textiles sector stood at over US$ 3.44 billion between April 2000 to March 2020.
In Union Budget 2020-21, the Government of India has allocated around Rs 3,515 crore (US$ 502.93 million) to the Ministry of Textiles and Rs 80 crore (US$ 11.45 million) for the scheme on Integrated Textile Parks. The Ministry of Textiles has announced Rs 690 crore (US$ 106.58 million) for setting up 21 readymade garment manufacturing units in seven states for development and modernisation of Indian textile sector. National Technical Textiles Mission is proposed for a period from 2020-21 to 2023-24 at an estimated outlay of Rs 1,480 crore (US$ 211.76 million).
The National Handloom Development Programme has been allocated Rs 388.21 crore (US$ 55.55 million), whereas, the Integrated Processing Development Scheme has received Rs 50 crore (US$ 7.15 million) in Union Budget 2020-21.
Note: P - Provisional, *-third advance estimate, # - India Ratings and Research.
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Last Updated: July 31, 2020
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