India - Knitting the future
India is among the world's largest producers of Textiles and Apparel
The domestic apparel & textile industry in India contributes 5% to the country’s GDP, 7% of industry output in value terms, and 12% of the country’s export earnings. India is the 6th largest exporter of textiles and apparel in the world.
India is one of the largest producers of cotton and jute in the world. India is also the 2nd largest producer of silk in the world and 95% of the world’s hand-woven fabric comes from India. The Indian technical textiles segment is estimated at $16 bn, approximately 6% of the global market.
The textiles and apparel industry in India is the 2nd largest employer in the country providing direct employment to 45 million people and 100 million people in allied industries.
India has also become the second-largest manufacturer of PPE in the world. More than 600 companies in India are certified to produce PPEs today, whose global market worth is expected to be over $92.5 bn by 2025, up from $52.7 bn in 2019.
- FDI in the textiles and apparel industry in India has reached up to $3.75 bn till March 2021
- India’s exports of textiles and apparel are expected to reach $100 bn in the next 5 years, growing at a CAGR of 11%
- To double the Indian textile and apparel industry size to $190 bn by 2025-26, 7 mega textile parks have been planned
- The Indian technical textiles market was estimated at $20 bn in 2019-20 and grew at a CAGR of 10% since 2015-16
- The domestic technical textile market for synthetic polymer was valued at $7.1 bn in 2020 and is projected to reach $11.6 bn by 2027, growing at a CAGR of 7.2%, while technical textile market for wovens is expected to grow at a CAGR of 7.4% to $15.7 bn by 2027, up from $9.5 bn in 2020
Textiles and garments industry is expected to reach $190 bn by 2025-26 from $103.4 bn in 2020-21.
The textiles and apparel industry in India has strengths across the entire value chain from fiber, yarn, fabric to apparel. The Indian textile and apparel industry is highly diversified with a wide range of segments ranging from products of traditional handloom, handicrafts, wool, and silk products to the organized textile industry in India. The organized textile industry in India is characterized by the use of capital-intensive technology for the mass production of textile products and includes spinning, weaving, processing, and apparel manufacturing.
The domestic textiles and apparel industry stood at $108.5 bn in 2019-20 of which $75 bn was domestically consumed while the remaining portion worth $28.4 bn was exported to the world market.
The highest contributors to FDI in the Textile sector of India (including dyed, printed) from April 2016 to March 2021 are Japan, Mauritius, Italy, and Belgium.
Cotton production supports 5.8 million farmers and 40-50 million people in allied sectors.
Further, the domestic consumption of $75 bn was divided into apparel at $55 bn, technical textiles at $15 bn and home furnishings at $5 bn. While exports comprised of apparel exports at $12 bn; home textiles exports at $4.8 bn; fabric exports at $4 bn; yarn exports at $3.8 bn; fiber exports at $1.8 bn and others at $2 bn.
Export of Cotton Yarn/Fabrics/Made ups, Handloom Products Etc. was valued at $1297.82 bn in August 2021 with a positive growth of 55.62% over exports of $833.95 bn in August 2020.
Export of RMG Of All Textiles was valued at $1235.11 bn in August 2021 with a positive growth of 13.99% over exports of $1083.53 bn in August 2020.