Textiles
Textiles industry contributed 10 per cent to the manufacturing production of India in FY17.

Textile Industry & Market Growth in India

Latest update: September, 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: September, 2018

Introduction

India’s textiles sector is one of the oldest industries in Indian economy dating back several centuries. India's overall textile exports during FY 2017-18 stood at US$ 39.2 billion.

The Indian textiles industry is extremely varied, with the hand-spun and hand-woven textiles sectors at one end of the spectrum, while the capital intensive sophisticated mills sector at the other end of the spectrum. The decentralised power looms/ hosiery and knitting sector form the largest component of the textiles sector. The close linkage of the textile industry to agriculture (for raw materials such as cotton) and the ancient culture and traditions of the country in terms of textiles make the Indian textiles sector unique in comparison to the industries of other countries. The Indian textile industry has the capacity to produce a wide variety of products suitable to different market segments, both within India and across the world.

Market Size

The Indian textiles industry, currently estimated at around US$ 150 billion, is expected to reach US$ 250 billion by 2019. India’s textiles industry contributed seven per cent of the industry output (in value terms) of India in 2017-18.It contributed two per cent to the GDP of India and employs more than 45 million people in 2017-18.The sector contributed 15 per cent to the export earnings of India in 2017-18.

The production of raw cotton in India is estimated to have reached 34.9 million bales in FY18^.

Investment

The textiles sector has witnessed a spurt in investment during the last five years. The industry (including dyed and printed) attracted Foreign Direct Investment (FDI) worth US$ 2.97 billion during April 2000 to June 2018.

Some of the major investments in the Indian textiles industry are as follows:

  • 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)' with an outlay of Rs 1,300 crore (US$ 202.9 million) from 2017-18 to 2019-20.
  • In May 2018, textiles sector recorded investments worth Rs 27,000 crore (US$ 4.19 billion) since June 2017.

Government Initiatives

The Indian government has come up with a number of export promotion policies for the textiles sector. It has also allowed 100 per cent FDI in the Indian textiles sector under the automatic route.

Initiatives taken by Government of India are:

  • The Textile Ministry of India earmarked Rs 690 crore (US$ 106.58 million) for setting up 21 ready made garment manufacturing units in seven states for development and modernisation of Indian Textile Sector.
  • 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.
  • As of August 2018, the Government of India has increased the basic custom duty to 20 per cent from 10 per cent on 501 textile products, to boost Make in India and indigenous production.
  • The Government of India announced a Special Package to boost exports by US$ 31 billion, create one crore job opportunity and attract investments worth Rs 80,000 crore (US$ 11.93 billion) during 2018-2020. As of August 2018 it generated additional investments worth Rs 25,345 crore (US$ 3.78 billion) and exports worth Rs 57.28 billion (US$ 854.42 million).
  • The Government of India has taken several measures including Amended Technology Up-gradation Fund Scheme (A-TUFS), scheme is estimated to create employment for 35 lakh people and enable investments worth Rs 95,000 crore (US$ 14.17 billion) by 2022.

Road Ahead

The future for the Indian textile industry looks promising, buoyed by both strong domestic consumption as well as export demand. With consumerism and disposable income on the rise, the retail sector has experienced a rapid growth in the past decade with the entry of several international players like Marks & Spencer, Guess and Next into the Indian market.

High economic growth has resulted in higher disposable income. This has led to rise in demand for products creating a huge domestic market.

Exchange Rate Used: INR 1 = US$ 0.0149 as of Q1 FY19.

References: Ministry of Textiles, Indian Textile Journal, Department of Industrial Policy and Promotion, Press Information Bureau

Note: ^ - Third advance estimates for FY18 of 170 kgs each

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

Textiles India

Textiles and Apparel Zones
Textiles and Apparel Zones in India

Posters

Brand India Pharma

FASHION FOR HIGH TECH

The technical textile industry in india worth US$ 17 billion is expected to grow at a rate of 20 per cent annually to reach US$ 36 billion by 2016-17.

+ More >

Brand India Pharma

IBEF Publications

IBEF Publication

India Now Magazine


Towards a healthier India - Focus on accessibility, affordability, and quality

English

+ More Publications >

IBEF Publication

IBEF Blog - INDIA ADDA – PERSPECTIVES ON INDIA More

author_logo-ibef1.jpg INDIA-COLOMBIA TRADE: AIMING FOR NEW LANDMARKS!
IBEF, Knowledge Centre

India and Colombia’s diplomatic relations date back to the year 1959. Till today, the relations have only been growing stronger, friendlier and cordial with Colombi...

author_logo-ibef1.jpg ISRO: Flying high!
IBEF, Knowledge Centre

Indian Space Research Organization (ISRO) is counted amongst the top six Government space agencies in the world today. Its vision to 'harness space technology for national ...

author_logo-ibef1.jpg INDIA'S GOVERNMENT E-MARKETPLACE: MAKING PROCUREMENT SIMPLE!
IBEF, Knowledge Centre

The Government e-Marketplace (GeM) is a national public procurement platform in India that was launched about two years back, in August 2016. Till date, the platform cla...

author_logo-ibef1.jpg Indian Logistics Sector: Shining bright!
IBEF, Knowledge Centre

The Indian logistics sector is on a big growth tide. According to the domestic rating agency ICRA, Indian logistics sector is expected to grow at a rate 8-10 per cent ove...

author_logo-ibef1.jpg India's Franchise Industry: The road so far and way forward!
IBEF, Knowledge Centre

Whether you are in a big metropolitan city or a smaller town, one look around you is bound to reveal bright signage with recognisable names all around. From heading to th...

author_logo-ibef1.jpg India: Strong in Tractor Manufacturing
IBEF, Knowledge Centre

In India, agriculture and its allied sectors are the primary source of livelihood for a large chunk of domestic population. In 2017, the Gross Value Added (GVA) in these...

ideas More

Ideas

Between the Covers
The shift from buying books at traditional book stores to buying books online is posing a threat to the publishing industry. In 2009, one publisher named Ralph Möller realized that the Internet is where the users are. With an initial investment of €25,000 (Rs 1.84 million) and the motivation to find new..

JOIN IBEF.org

Join IBEF.org now. Enjoy FREE subscriptions downloads, updates and more.

Error

Already a member?
Login / Retrieve Password