India is the second-largest producer of MMF Fibre and the third largest exporter of textiles and apparel in the world.
The textile industry in India has a long and storied history, stretching back hundreds of years. The industry spans the gamut from labor-intensive hand-spun and hand-woven textiles on one end to capital-intensive, high-tech mills on the other. Cotton, jute, silk, and wool are just some of the natural fibers that India textile sector relies on, but the country also has a robust production base of synthetic/man-made fibers including polyester, viscose, nylon, and acrylic.
The textile industry is dominated by the independent looms/hosiery and knitting sector. When compared to other sectors of the economy, the textile industry stands out due to the special relationship it maintains with agriculture (for raw materials like cotton) and the long history of textile production in the country. The textiles industry in India can produce a wide range of goods for various niches in the domestic and international markets.
MARKET SIZE
The Indian textile and apparel sector is predicted to grow at 10% CAGR from 2019-20 to reach US$ 190 billion by 2025-26. India has a 4% share of the global commerce in textiles and garments.
India is the world largest producer of cotton. Estimated production amounted at 362.18 lakh bales for cotton season 2021-22. Domestic consumption for the 2021-22 cotton season is anticipated to be around 338 lakh bales. Cotton production in India is predicted to reach 7.2 million tonnes (~43 million bales of 170 kg each) by 2030, driven by increased demand from consumers. In FY23, exports of readymade garments (RMG) including accessories stood at US$ 16.2 billion. It is predicted to hit US$ 30 billion by 2027, with an estimated 4.6-4.9% share globally.
India 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 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.
India textiles industry has around 4.5 crore employed workers including 35.22 lakh handloom workers across the country.
INVESTMENT AND KEY DEVELOPMENT
From April 2000 to March 2023, the industry, which includes dyed and printed goods, got US$ 4.2 billion in foreign direct investment (FDI). In the last five years, there has been a lot of funding in the textiles industry.
- In April 2022, Indo Count Industries bagged the home textile business of GHCL for US$ 74.14 million.
- In March 2022, Reliance Retail Ventures Limited (RRVL) acquired a controlling share of Purple Panda Fashions for US$ 115.8 million.
- Sutlej Textiles plans to set up a green field project for 89,184 spindles comprising of cotton mélange yarn and PC grey yarn along with dye house in Jammu & Kashmir with an estimated cost of US$ 111.41 million (Rs. 914 crore).
- Vardhman has established Vardhman ReNova, a cotton recycling facility with a six TPD production capacity. By establishing two new facilities in Madhya Pradesh, the company has also increased its capacity to produce yarn. With top-notch technology, the expansion includes over 100,000 spindles in total. This will result in a 75 TPD increase in yarn production capacity.
- The textile ministry has selected 61 companies, including Arvind Limited to enjoy benefits under its US$ 1.3 billion (Rs. 10,683 crore) production-linked incentive (PLI) scheme for the labour-intensive textiles and garment sector. The companies have pledged to invest US$ 2.32 billion (Rs 19,077) crore over five years under the scheme, which will lead to an incremental turnover of US$ 22.55 billion (Rs 1.85 trillion) and direct employment generation for 240,000 people.
- Arvind Limited, the largest textile to technology conglomerate in India, and PurFi Global LLC, a sustainable technology firm that specialises in rejuvenating textile waste into virgin grade products, have formed a joint venture to reduce the quantity of textile waste dumped in landfills.
- In November 2022, local weavers in Tuensang in Nagaland were provided 45 days of skill-upgrading training, which would equal 315 hours under the SAMARTH programme.
- In 2022-23, the Sardar Vallabhbhai Patel International School of Textiles and Management (SVPISTM) is planning to offer B.Sc. and MBA courses in technical textiles.
- In November 2021, Federico Salas, the Mexican Ambassador to India, visited the Khadi India Pavilion at the India International Trade Fair 2021 and suggested that India and Mexico should come together to promote Khadi globally.
- In October 2021, Welspun India collaborated with DuPont Biomaterials to introduce a home textile range and strengthen the company sustainable textiles business.
- In May 2021, Indo Count Industries Ltd. (ICIL) announced an investment of Rs. 200 crore (US$ 26.9 million) to expand its production capacity.
- In April 2021, Bella Casa Fashion & Retail Ltd. (BCFRL) announced that it is expanding its two existing plants and adding one new facility to offer employment opportunities to 1,000 people. The expansion would involve a total investment of Rs. 65 crore (US$ 8.63 million).
ROAD AHEAD
With robust local and foreign demand, the Indian textiles industry appears to have a bright future. India is pursuing a number of significant projects to grow its technical textile sector. The epidemic has increased demand for technical textiles, which are used to make PPE suits and equipment. The government provides financing and machinery sponsorship to support this industry.
Leading companies in the industry are producing textiles with recyclable, natural ingredients to make their products more sustainable.
The retail industry has grown rapidly in the last ten years due to an increase in consumerism and disposable money, and the arrival of major foreign companies into the Indian market, including Marks & Spencer, Guess, and Next.
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.
References: Ministry of Textiles, Indian Textile Journal, Department of Industrial Policy and Promotion, Press Information Bureau, Union Budget 2023-24
Major Textiles hubs in India
- NCR
- Gujarat
- Maharashtra
- Uttar Pradesh
- West Bengal
- Tamil Nadu
- Madhya Pradesh
- Rajasthan
Industry Contacts
- The Textile Association (India) (TAI)
- Northern India Textile Mills Association (NITMA)
- The Cotton Textiles Export Promotion Council (TEXPROCIL)
- The South India Textile Research Association (SITRA)
