TEXTILE Industry

India’s textiles sector is one of the oldest industries in the Indian economy,
dating back to several centuries. The industry is extremely varied, with hand-
spun and hand-woven textiles sectors at one end of the spectrum, with the
capital-intensive sophisticated mills sector at the other end. The fundamental
strength of the textile industry in India is its strong production base of a wide
range of fibre/yarns from natural fibres like cotton, jute, silk and wool, to
synthetic/man-made fibres like polyester, viscose, nylon and acrylic.
 INDIAN TEXTILE & APPAREL INDUSTRY

• India is the world’s second-largest producer of textiles and garments. It is also the sixth-largest exporter of
textiles spanning apparel, home and technical products. India has 4% share of the global trade in textiles
and apparel.

• The textiles and apparel industry 2.3% to the country’s GDP, 13% to industrial production and 12% to
exports. The textile industry has around 45 million workers employed in the textiles sector, including 3.5
million handloom workers.

• The Indian textile and apparel industry is expected

to grow at 10% CAGR from 2019-20 to reach $190
billion by 2025-26. The Indian apparel market is
expected to grow at 27.5% CAGR, from $40 billion
in 2020 to $135 billion in 2025.

MARKET SIZE

Source- https://www.ibef.org/industry/retail-india
 EXPORT INDUSTRY

• India’s textile and apparel exports (including

handicrafts) stood at US$ 44.4 billion in FY22,
a 41% increase YoY. During April-November in
FY23, the total exports of textiles stood at
US$ 23.1 billion.

• India’s textile and apparel exports to the US,

its single largest market, stood at 27% of the
total export value in FY22. Exports of
readymade garments including cotton
accessories stood at US$ 6.19 billion in FY22.
 MAJOR TEXTILES HUB IN INDIA

• NCR

• GUJARAT

• MAHARASHTRA

• UTTAR PRADESH

• WEST BENGAL

• TAMIL NADU

• MADHYA PRADESH

• RAJASTHAN
 KEY ADVANTAGES

➢ 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.

Source- https://vakilsearch.com/blog/retail-sector-in-india-protected-by-laws
 INVESTMENT AND POLICY SUPPORT

➢ INVESTMENTS

• In June 2023, Government has approved R&D projects worth US$ 7.4 million (Rs. 61.09 crore) in textile
sector.
• Huge funds in schemes such as Rs. 900 crore (US$ 109.99 million) for Amended Technology Upgradation
Fund Scheme (ATUFS) have been released by the Government in the union budget of 2023-24 to encourage
more private equity investments and provide employment.

➢ 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.

Source: Unicommerce
 ROAD AHEAD

• The future of the Indian textiles industry looks promising, buoyed by strong domestic consumption as well as
export demand. India is working on various major initiatives to boost its technical textile industry. The
government is supporting the sector through funding and machinery sponsoring.

• Top players in the sector are achieving sustainability in their products by manufacturing textiles that use
natural recyclable materials.

• With consumerism and disposable income on the rise, the retail sector has experienced a rapid growth in the
past decade with the entry of several international players like Marks & Spencer, Guess and Next into the
Indian market. The growth in textiles will be driven by growing household income, increasing population and
increasing demand by sectors like housing, hospitality, healthcare, etc.

• The technical textiles market for automotive textiles is projected to increase to US$ 3.7 billion by 2027, from
US$ 2.4 billion in 2020. Similarly, the industrial textiles market is likely to increase at an 8% CAGR from US$ 2
billion in 2020 to US$ 3.3 billion in 2027. The overall Indian textiles market is expected to be worth more than
US$ 209 billion by 2029.
Source-https://www.investindia.gov.in/sector/retail-E-commerce
 LATEST NEWS RELATED TO TEXTILE INDUSTRY

• Centre has approved the Startup Guidelines dedicated to Technical Textiles. ( 30 AUG 2023)
Mr. Rajeev Saxena, Joint Secretary of Textiles, during a press conference held on the significant developments in the
National Technical Textiles Mission (NTTM), informed that the Ministry of Textiles has approved the Startup
Guidelines for Technical Textiles - Grant for Research and Entrepreneurship across Aspiring Innovators in Technical
Textiles (GREAT), providing grant-in-aid up to Rs. 50 lakh (US$ 60,533) for up to a period of 18 months.

• Indian hosiery sector stitches up revenue growth of Rs. 36,000 crore (US$ 4.32 billion), 18-20% higher
on-year. ( 22 AUG 2023)
Due to a rebound in rural demand, the Indian hosiery industry is expected to generate sales of Rs. 36,000 crore (US$
4.32 billion) this fiscal year, an increase of 18-20% year-over-year.

• PM Vishwakarma Yojana for artisans to be launched on Vishwakarma Jayanti in September.

( 17 AUG 2023)
On Vishwakarma Jayanti, according to MSME Minister Mr. Narayan Rane, the central government would introduce
the new Vishwakarma Yojana in an effort to support the artisans and craftsmen associated with traditional
industries. According to him, "this programme will empower and support the traditional industries falling under the
MSME sector." This year, Vishwakarma Jayanti falls on September 17.