India is among the world's largest producers of Textiles and Apparel
The domestic textiles and apparel industry contributes 2% to India’s GDP, 7% of industry output in value terms and 12% of the country’s export earnings.
The textiles and apparel industry in India is the second-largest employer in the country providing direct employment to 45 million people and 60 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 has reached up to $3.45 bn during 2020
Exports in the textiles and apparel industry are expected to reach $300 bn by 2024-25 resulting in a tripling of Indian market share from 5% to 15%
To double the industry size to $300 bn by 2025-26, 7 mega textile parks have been planned.
Industry Scenario
Textile & garments industry in India is expected to reach $223 bn by 2021 from $140.4 bn in 2018.
The textiles and apparel industry in India has strengths across the entire value chain from fiber, yarn, fabric to apparel. It 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. The organized textile industry is characterized by the use of capital-intensive technology for mass production of textile products and includes spinning, weaving, processing, and apparel manufacturing.
The domestic textiles and apparel industry stood at $140 bn in 2018 (including handicrafts) of which $100 bn was domestically consumed while the remaining portion worth $40 bn was exported to the world market.
Further, the domestic consumption of $100 bn was divided into apparel at $74 bn, technical textiles at $19 bn and home furnishings at $7 bn. While exports comprised of textile exports at $20.5 bn apparel exports at $16.1 bn and handlooms at $3.8 bn.
(Source: Invest India)