Indian Textiles and Apparel Industry Analysis

India is the second largest textile and clothing exporter in the world.

Advantage India

Robust
Demand

* Cotton production in India is projected to reach 7.2 million tonnes (~43 million bales of 170 kg each) by 2030, driven by increasing demand from consumers.

* Between April 2021 and September 2021, handicraft exports from India stood at Rs. 15,995.73 crore (US$ 2.13 billion), a 60.34% YoY rise due to increased participation from industry players to boost handicraft products in global markets.

Competitive
Advantage

* India enjoys a comparative advantage in terms of skilled manpower and in cost of production, relative to major textile producers.

* Abundant availability of raw materials such as cotton, wool, silk and jute.

Policy
support

* 100% FDI (automatic route) is allowed in textiles.

* Production-linked Incentive (PLI) Scheme worth Rs. 10,683 crore (US$ 1.44 billion) for manmade fibre and technical textiles over a five-year period.

* Exports of cotton yarns/fabs./made-ups/handloom products stood at US$ 8.6 billion between April 2021 and October 2021.

Increasing
Investments

* Huge funds in schemes such as Integrated Textile Parks (SITP) (US$ 184.98 million) and Technology Upgradation Fund Scheme (US$ 961.11 million) released by Government during 2015-16 to 2019-20 to encourage more private equity and provide employment.

Last updated: Apr, 2022

Major Textiles hubs in India  

  • NCR
  • Gujarat
  • Maharashtra
  • Uttar Pradesh
  • West Bengal
  • Tamil Nadu
  • Madhya Pradesh
  • Rajasthan

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