Textile Industry & Market Growth in India

India is the second-largest producer of MMF Fibre and the third largest exporter of textiles and apparel in the world.

Advantage India

Robust
Demand

*Cotton production in India is projected to reach 7.2 million tonnes by 2030, driven by increasing demand from consumers.

*The market for Indian textiles and apparel is projected to grow at a 10% CAGR to reach US$ 350 billion by 2030, with exports expected to reach US$ 100 billion.

*India’s textile and apparel exports (including handicrafts) stood at US$ 28.72 billion in FY24 (April-January 2024)

Robust Demand Icon

Competitive
Advantage

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

*In June 2022, Minister of Textiles, Commerce and Industry, Consumer Affairs & Food and Public Distribution, Mr. Piyush Goyal, stated that the Indian government wants to establish 75 textile hubs in the country.

Competitive Advantage

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.

*The Indian government has notified uniform goods and services tax rate at 12% on man-made fabrics (MMF), MMF yarns and apparel, which came into effect from January 1, 2022.

*1,83,844 beneficiaries trained across 1,880 centres under Samarth.

Policy Support

Increasing
Investments

*In June 2023, Government approved R&D projects worth US$ 7.4 million (Rs. 61.09 crore) in textile sector

*Huge funds in schemes such as Rs. 900 crore (US$ 109.99 million) for Amended Technology Upgradation Fund Scheme (ATUFS) have been released by the Government in the union budget of 2023-24 to encourage more private equity investments and provide employment.

*Total FDI inflows in the textiles sector stood at US$ 4.43 billion between April 2000-December 2023.

Textile Market Growth
Last updated: May, 2024

Major Textiles hubs in India  

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

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