The global textile market is estimated to reach US$ 1,412.5 billion by 2028 and would expand at a CAGR of 4.4% from 2021 to 2028. Rapidly changing trends in the fashion industry, along with rising consumer awareness, are expected to drive the market. Furthermore, the rise in e-commerce platforms, which is accelerating growth in sales and distribution of various kinds of products manufactured by the industry, is estimated to fuel demand. Additionally, robust government measures to ensure labour health and safety are convincing as the demand for personal protective clothing that needs tested cotton or wool as raw material is driving the market growth.
India aims to achieve a prominent global position in manufacturing and exports of different types of textiles including jute, silk, cotton and wool. It also plans to build a thriving handicraft and handloom sector for sustainable economic growth as well as promote and preserve the sector’s traditional cultural heritage. The country’s vision is to enhance the strategic and balanced growth of textiles by making sure that adequate fibres are readily available to all sectors. It also aims to strengthen the industry through modernisation and technological upgrades. Furthermore, India aims to develop the capacity and skills of all workers in the textile industry and ensure a better working environment and improved access to facilities such as healthcare and insurance.
India has the potential to increase its textile exports from US$ 40 billion to US$ 100 billion in the next five years. The textile sector had traditionally enjoyed a comparative advantage, particularly apparel manufacturing. Exports of apparel are a significant component of India's export basket, as it plays a vital role in boosting the domestic economy. An increase in competition from neighbouring countries, such as Bangladesh and Vietnam, has led to a partial stagnation in apparel exports. However, India’s textile industry could overcome these barriers and become one of the most crucial exporters of textile in the world.
India’s apparel industry has a great historic significance, the traces of which could be found in the historical records of the Indian subcontinent and the Indus Valley Civilisation. Globally, apparel is one of the world’s largest and oldest export industries. Apparel production is the foundation for national development and is the starter industry for various countries involved in export-linked industrialisation because of its lower fixed costs and focus on labour-intensive manufacturing. Apparel manufacturing is also an integral part of the broader textile industry and is forecast to account for over two-thirds of the total textile industry. Furthermore, textile accounts for more than 2% of India’s overall GDP, equivalent to almost 12–14% of the manufacturing sector’s GDP. Textile is also one of the biggest labour-intensive sectors and is an important source of employment for semi-skilled and unskilled labour.
Textile products from India are exported to more than 100 countries, mainly to the US and European Union countries. The US, the UK, Germany, Bangladesh and the UAE contribute significantly to the country’s textile and apparel exports.