by History and Development
The textile industry has a long history in India, with production and export of cotton textiles dating back to antiquity. India was famous for its muslin, silk and finely printed and dyed cotton fabrics that were exported worldwide. During British rule in the 19th century, India’s handloom textiles industry suffered a major decline due to harsh competition from British factory-produced textiles. After independence in 1947, the Indian government recognized the importance of textiles and established several research institutions and provided support to revive the industry.
In the 1950s and 1960s, import substitution policies helped boost domestic production through development of spinning and weaving mills. Synthetic fibers like polyester also gained popularity during this time. Exports steadily increased with policy liberalization in the 1980s and 1990s. Recent decades have witnessed significant investments and growth with setting up of special economic zones (SEZs), strengthening of infrastructure and promotion of textile clusters across major production centers in the country. The textile industry is also leveraging new technologies like artificial intelligence and robotics to enhance productivity and quality.
Current Status and Segments
Currently, India’s textile and apparel sector is one of the largest in the world with a size of around $150 billion. It contributes nearly 7% to India’s GDP and employs over 45 million people directly. The key segments in India’s textiles industry include cotton, jute, silk, wool and man-made fiber textiles.
Cotton textiles account for nearly 50% of the industry. India is the largest producer and second largest exporter of cotton in the world. Major cotton growing states are Gujarat, Maharashtra, Andhra Pradesh and Punjab.
Man-made fibers like polyester, viscose and nylon have seen tremendous growth and constitute over 60% of total fiber consumption today. India is the fifth largest producer and second largest consumer of polyester in the world.
India is also the second largest Textile and Apparel sector which producer of silk globally after China. Important silk producing states are Karnataka, West Bengal and Jammu & Kashmir. Eri and Muga silks from Assam are unique to India.
Woolen garments have a large domestic market in Northern India. States like Himachal Pradesh, Jammu & Kashmir, Uttarakhand are major wool producers.
Jute is a traditional bast fiber of India with significant exports. West Bengal is the main producer of jute and allied fibers in the country.
Exports and Key Markets
The textile exports from India have grown significantly over the decades to reach around $40 billion currently. Readymade Garments dominate exports while other major product categories include cotton yarn/fabrics, handicrafts, silk, jute products etc.
The leading export markets are the United States, European Union, UAE, Bangladesh, China, among others. The US imports over 15% of its clothing and 65% of men’s and boys’ trousers from India. Indian readymade garment shipments have also increased sharply in China, Bangladesh due to rising wages there.
Several FTAs (Free Trade Agreements) and PTAs (Preferential Trade Agreements) that India has signed with partner countries have facilitated greater market access for textile products. Initiatives like Make-In-India and Production Linked Incentive Schemes of the government aim to enable growth in production for both domestic use and foreign markets.
Future Outlook and Opportunities
Experts project that India’s textile and apparel industry has the potential to increase three-fold to $250-300 billion by 2025 driven by growing domestic demand and further rise in exports. With China moving up the value chain to produce high-end garments, India is well-poised to capture a greater share of the low-cost textile manufacturing.
There is significant scope for capacity expansions across the value chain from spinning to garmenting. Polyester and technical textiles are expected to gain further momentum. Indian companies are also looking at overseas acquisitions to diversify and enhance their global footprint.
Focus on niche segments like organic cotton, bamboo fabrics, hemp, etc. provides opportunities for development of sustainable textiles. Rise of e-commerce will increase online sales and enable faster global reach. Emerging sectors in technical textiles also present good prospects. The positive forecast and policy support are expected to sustain India’s lead position in the global textiles industry over the coming years.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
