TEXTILE SECTOR OVERVIEW
Statistics, news & updates: everything you need to know about the Textile Industry in India
Summary/Snapshot
The domestic textiles and apparel industry now contributes 2.3% to India’s GDP, 13% of industrial production, and 12% of the country’s export earnings.
The sector employs 45 million workers directly and supports an additional 100 million people in allied industries.
The sector continues to have low entry barriers, with minimal capital required for business entry and readily available technology and skills.
100% FDI is permitted in the sector. Cumulative FDI inflows into the textiles sector stood at US$ 4.47 billion from April 2000 to March 2024.
Due to the cost-effectiveness, durability, and versatility of textiles, India remains a key growth market for the technical textile sector. The sector is projected to reach a turnover of $40 billion by 2024.
Cotton farming in India employs 6 million farmers and supports an additional 40-50 million workers in related industries. India continues to be a significant player in global cotton production.
India is the world’s second-largest producer of silk, accounting for 95% of all hand-woven cloth. The country produced 36,582 metric tons of silk in FY23.
The domestic textiles and apparel market in India is estimated to be $197.2 billion in 2023 and is expected to grow significantly in the coming years.
India holds the second-largest market share in yarn and home textiles after China. The home textile market in India is projected to reach $11.72 billion in 2024.
Growth Drivers
India’s exports of textiles and apparel are expected to grow to $65 bn by 2025-26, growing at a CAGR of 11%.
7 mega textile parks have been planned to double the industry size to $190 billion by 2025-26.
The demand for technical textiles is on the rise due to the growth in end-user usage in other sectors like Defense, Healthcare and the Automobile industry is on the rise.
A financial outlay of $13 billion dollars is approved in Production-Linked Incentive (PLI) Scheme in Man-made fiber and technical textiles.
Sub industries
Accessories
Fabric – Woven & non-woven
Fibres & filaments
Textile Machinery
Rope, Cordage, Twine, Tyre cord & fabric
Technical Textiles/Geotextiles
Opportunities
- India has the potential to become a one-stop sourcing destination for ASEAN enterprises, as there are various chances for textile manufacturing companies from the 10-nation bloc to invest in India.
- The government intends to attract international investment and provide employment prospects for 35 million people, according to a new draught of the National Textile Policy.
Challenges
The weaving/Knitting sector contributes to less than 10% of the total production. This comes out to be the weakest link in the supply chain suffering from problems such as high power tariffs and low investments in technology.
The Processing sector is largely decentralized with low levels of automation, leading to inconsistency in production and meeting quality standards.
Prices of imported raw materials like dyes have seen an upward increase after many units in China were shut down due to pollution norms.
Textile factories in India are not fully automated and remain labor-intensive.
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Key Investment Opportunities
India’s textile sector is well-represented throughout the value chain.
All levels of the textile value chain are available, from fiber/filament through large-scale garment/specialty fabric manufacture.
India has a long history of textile and clothing production, with infrastructure strewn around the country in a variety of clusters.
Fabric processing equipment is available for a wide range of natural, synthetic, and specialty fabrics.
There are numerous opportunities to invest in retail brands.
Recent Developments
- The government continues to support the textile industry through significant funding. The Integrated Textile Parks (SITP) and Technology Upgradation Fund Scheme (TUFS) have collectively received US$ 1.5 billion from 2020 to 2024 to encourage private equity and provide employment.
- India’s textile and apparel exports, including handicrafts, reached US$ 50 billion in FY24, marking a substantial increase from previous years.
- Exports of readymade garments, including cotton accessories, stood at US$ 7.5 billion in FY24.
Key Players in India
National
- Arvind Limited
- Vardhman Textiles Limited
- Welspun India Limited
- Raymond Limited
- Trident Limited
- KPR Mill Limited
- Page Industries Limited
- Nitin Spinners Limited
- Rupa & Company Limited
- Himatsingka Seide Limited
International
- TJX Companies
- V.F Corporation
- Lululemon Athletica
- Shenzhou International Group Holdings
- Zalando SE
- Prada
- Under Armour
- Ralph Lauren Corporation
- PVH
- Tapestry
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