Indian Economy News

India’s Coir Sector Strengthens Rural Livelihoods and Sustainable Growth

India, the world’s largest producer and exporter of coir and coir products, is strengthening rural livelihoods, promoting entrepreneurship and supporting sustainable manufacturing using coconut husk fibres. The traditional coir industry accounts for approximately two-thirds of global production and has a turnover of around Rs. 16,000 crore (US$ 1.81 billion) in FY26, contributing close to 1% to India’s gross domestic product. In FY26, exports of coir and coir products reached Rs. 6,614.40 crore (US$ 748.01 million), compared with Rs. 1,630.33 crore (US$ 266.80 million) in FY15, registering growth of 305.70% in rupee terms. Major export destinations include the US, China, the Netherlands, Spain and the UK, while key products include coir pith, fibre, yarn and tufted mats. The sector comprises more than 21,000 coir units and provides direct and indirect employment to over seven lakh workers, around 80% of whom are women from rural households.

The Ministry of Micro, Small and Medium Enterprises implements the Coir Vikas Yojana to support the sector through technology development, machinery innovation, skill training, product promotion and financial assistance. Since FY15, more than 21,000 coir units have registered on the Udyam portal, employing approximately 2.3 lakh people within the formal micro, small and medium enterprise ecosystem. More than 68,000 people have received training under various programmes, with women accounting for over 80% of trainees. The sector has also developed more than 150 innovative machines, technologies and value-added products, facilitated the participation of over 1,000 exporters in international exhibitions, and provided more than Rs. 20 crore (US$ 2.26 million) in financial assistance to over 850 entrepreneurs under Export Market Promotion. More than 1,400 promotional programmes have been organised, alongside participation in over 950 exhibitions across India. Entrepreneurship initiatives, including the Prime Minister’s Employment Generation Programme and Coir Board training, have helped establish coir rope, mat, yarn and bio-fertiliser enterprises, generating local employment and expanding opportunities for women in rural communities.

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