Growth of Textile Industry - Infographic

India is the second largest textile and clothing exporter in the world, with a total exports of US$ 44.4 billion in FY22.

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.

* India’s textile and apparel exports (including handicrafts) stood at US$ 44.4 billion in FY22, a 41% increase YoY. Exports of readymade garments including cotton accessories stood at US$ 6.19 billion in FY22.

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.

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.

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 the Government during 2015-16 to 2019-20 to encourage more private equity and provide employment.