India’s textile industry hangs on the precipice of expansion, total output of Textile exports are expected to reach $65 billion by fiscal 2026 Invest India.
Invest India posted on
According to the Investment Authority of India, Domestic textile market It will be worth about $165 billion by 2022, with domestic sales accounting for $125 billion and exports providing the remaining $40 billion. The figures amount to an overall valuation of US$350 billion.
Apart from this accomplishment in the textile sphere, India is now the second largest manufacturer worldwide of Personal Protective Equipment (PPE). In fact, it has over 600 certified PPE manufacturers thus well positioned in this market which is projected to reach USD 92.5bn in 2025 up from USD52.7bn in 2019.
The textile industry is also one of the major providers of employment opportunities as it provides direct employment for approximately 45 million people while another approximately 100 million people are employed indirectly through related industries. An estimated number of six million farmers depend on cotton farming alone, whereas processing and trading employs between forty and fifty million people.
Several factors have contributed to its growth including world-class infrastructure in addition; technical textiles such as automotive, healthcare and infrastructure driven by demand as well as a skilled workforce with availability raw materials among others. Furthermore, lower manufacturing costs and an increasingly vibrant retail space including e-commerce have made the sector more attractive.
In order to underpin this growth trajectory, Indian government launched Production Linked Incentive (PLI) scheme with an outlay of Rs 10,683 crore. The scheme aims at scaling up production of MMF garments, MMF fabrics and technical textiles. Under PLI scheme so far a total of sixty-four proposals have been approved involving proposed investment of INR19798 Crore an Estimated Turnover OF INR19 Billion AND employments estimate OF 245362 People Investments are mainly planned in Madhya Pradesh, Uttar Pradesh and Rajasthan.
Foreign Direct Investment (FDI) in the textile industry has remained strong with 100% FDI allowed under automatic route. During April 2000 to March 2024, India received USD4.47bn as FDI in textiles including dyed and printed fabric.
Currently, India is one of the top textile and apparel producers worldwide, accounting for around 2.3% of GDP, producing about 13% of all industrial products and comprising 12% of exports.
This is emphasized by the fact that it represents roughly four percent of global trade in textiles and clothing.
India’s textile industry is characterized by diversity and massiveness while it ranks second globally in terms of cotton as well as jute production as well as silk respectively. Note that India accounts for up to 95% of all handmade fabrics produced globally.
