Trade Analytics
Textiles
Textiles and apparel exports from India are estimated to increase to US$ 65 billion by 2016-17 from US$ 40 billion in 2013-14.

Indian Textiles and Apparel Industry Analysis

Latest update: May, 2018

  • Textile plays a major role in the Indian Economy
    (i) It contributes 14 per cent to industrial production and 4 per cent to GDP
    (ii) With over 45 million people, the industry is one of the largest source of employment generation in the country
  • The size of India’s textile market as of July 2017 was around US$ 150 billion, which is expected to touch US$ 250 billion market by 2019, growing at a CAGR of 13.58 per cent between 2009-2019.
  • The central government is planning to finalise and launch the new textile policy in the next three months1. The policy aims to achieve US$ 300 billion worth of textile exports by 2024-25 and create an additional 35 million jobs.
Growth

Notes: CAGR - Compound Annual Growth Rate, E – Estimated, * as of July 2017, 1 As of June 2017
Source: Technopak, Make in India, News articles, Ministry of Textiles, Aranca Research

  • Production of man-made fibre has also been on an upward trend
  • Production stood at 1.347 million tonnes in FY16 with the figure reinforcing a recovery from 2009 levels
  • During FY171, production of man-made fibre in India stood at 1.364 million tonnes and the production until January 2018 in FY18* has been 1.123 million tonnes
Growth

Note:1- Provisional figures; * Data as of January 2018
Source: Ministry of Textiles

Last Updated: May, 2018

The textile and apparel industry can be broadly divided into two segments - yarn and fibre, and processed fabrics and apparel. India accounts for ~14 per cent of the world's production of textile fibres and yarns (largest producer of jute, second largest producer of silk and cotton, and third largest in cellulosic fibre). India has the highest loom capacity (including hand looms) with 63 per cent of the world's market share. The domestic textile industry in India is estimated to reach US$ 250 billion by 2019 from US$ 150 billion in July 2017, while cotton production in India is estimated to reach 37.7 million bales in FY18.

Increased penetration of organised retail, favourable demographics, and rising income levels are likely to drive demand for textiles. India is the world's second largest exporter of textiles and clothing. 

Textile and apparel exports from India are expected to increase to US$ 82 billion by 2021. Exports of textiles and Apparels from India reached US$ 21.15 billion and US$ 16.71 billion respectively during 2017-2018. Manmade garments remain the largest contributor to total textile and apparel exports from India, contributing 25.60 per cent to total textile.

Rising government focus and favourable policies is leading to growth in the textiles and clothing industry. The Ministry of Textiles is encouraging investments through increasing focus on schemes such as Technology Up-gradation Fund Scheme (TUFS). Under the Union Budget 2018-19, Rs 2,300 (US$ 355.27 million) crore have been allocated for TUFS and Rs 30 crore (US$ 4.63 million) for the Scheme for Integrated Textile Parks, under which there are 47 ongoing projects. 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)'. Cumulative FDI in the Indian textiles reached US$ 2.8 billion between April 2000 to December 2017.

The Directorate General of Foreign Trade (DGFT) has revised rates for incentives under the Merchandise Exports from India Scheme (MEIS) for two subsectors of Textiles Industry - Readymade garments and Made ups - from 2 per cent to 4 per cent. The government is also planning to conduct roadshows to promote the country's textiles in non-traditional markets like South America, Russia and select countries in West Asia.

Sectoral Presentation (May, 2018)

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Previous Sectoral Presentation (April, 2018)

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To access Archived reports, please click here

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Textiles and Apparel Zones
Textiles and Apparel Zones in India

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