Statistics, news & updates: everything you need to know about the Textile Industry in India


  • Summary
  • COVID-19 Impact
  • Industry Clusters
  • Growth Drivers
  • Key Players
  • Market Stats


  • Accessories
  • Fabric – Woven & non-woven
  • Fibres & filaments
  • Textile Machinery
  • Rope, Cordage, Twine, Tyre cord & fabric
  • Technical Textiles/Geotextiles


The textile industry is one of the earliest industries to have developed in India. Its inherent and unique strength is its incomparable employment potential. This is owing to the presence of the entire value chain from fibre to apparel manufacturing within the country.

In fact, it is the biggest employer after agriculture. It provides direct employment to 4.5 crore people and another 6 crores in allied sectors. Furthermore, India is the second-largest manufacturer of textiles and clothing in the world. India is also the second-largest exporter of textiles and apparel. In fact, it has a share of 5% in global trade.

Besides, various governmental flagship programs further drive growth. These include ‘Amended Technology Upgradation Funds Scheme (ATUFS), North Eastern Region Textile Promotion Scheme (NERTPS) and Scheme for Integrated Textile Parks.

COVID Impact

The impact of the COVID second wave is less severe on the textile industry as compared to the first wave. The major disruption is seen in the supply chain as there were partial lockdowns imposed in major textile hubs which are Surat, Ludhiana, Tirupur, and Bhilwara. This led to a shortage of raw material inputs which are yarn and fabric. Even though the price of raw material increased, the final product rice didn’t rise sharply. This supply chain disruption may lead to a 20%-30% YoY of reduction in top lines in 1QFY22.

Product pricing is now beginning to catch up across upstream, midstream, and downstream segments, leading to a margin expansion in FY22. However, the first quarter of FY 22 cannot be termed as a lost quarter because of strong export markets.

Labor availability was moderately impacted as they feared National lockdown and rushed back to their villages. The shop floor remained partially functional at few plant sites.

Export-focused garments and home textiles are likely to remain resilient compared to the spinning and fabric segment. Although shipments will defer to the second quarter of 2022 because of high shipping cost and availability of containers. This will impact the profitability of the companies.

The third wave is expected to impact export and domestic demand. Also, high volatility in crude oil & foreign currency rates, reduction in export incentives, cotton crop failing, among other things, will be treated as events and are not Ind-Ra’s base case expectations.

The statistics below are taken from Industry data available pre-Corona virus impact.

Map – Industry Clusters

Map- Industry Clusters - Textile

M+V Expertise

  • M+V manages an Throughput of USD 4 Million
  • More than 150 SKU`s of the Fabric Industry are managed by M+V
  • M+V has 110 Trade Partners across India

Growth Drivers

  • Abundance of raw material, presence of entire value chains, competitive manufacturing costs, availability of skilled manpower, large and growing domestic market, rising per capita income, higher disposable incomes and preferences for brands and increase in organized retail landscape and e-commerce are the key growth drivers for the textile industry.
  • There is an increased focus on technical textiles due to the growth of end-user industries. These include automotive, healthcare, infrastructure, aviation, defence and oil and petroleum.
  • The textiles industry in India is experiencing a significant increase in collaboration between global majors and domestic companies.
  • The sector is highly diversified. It caters to a wide range of segments ranging from traditional handloom products to cotton, wool and silk products. Besides, it has products that vary across natural & man-made fiber, yarn and apparel.
  • The slowdown in the Chinese economy has increased the cost of textile production in China. Hence, Chinese textile manufacturers have lost competitive advantages of the lower cost of production in the last few months.
  • Under Union Budget 2019-20, the government has allocated Rs. 700 crore (US$ 97.02 million) for Amended Technology Upgradation Fund Scheme (ATUFS).
  • As of November 2018, Odisha is planning to build three textiles parks with the aim to promote investments in the textile sector.
  • Government of India has approved a new skill development scheme named ‘Scheme for Capacity Building in the Textile Sector (SCBTS)’. It has an outlay of US$ 202.9 million from 2017-18 to 2019-20.
  • The Textile Ministry of India earmarked US$ 106.58 million for setting up 21 readymade garment manufacturing units in seven states for development and modernisation of Indian textile sector.
  • 100 per cent FDI is permitted in the sector. Cumulative FDI inflows into the textiles sector stood at over US$ 3.19 billion from April 2000 to June 2019.
  • India can become the one-stop sourcing destination for companies from the Association of Southeast Asian Nations (ASEAN). This is because of the existence of several opportunities for textile manufacturing companies from 10-nation bloc to invest in India.

Market Stats

  • The size of India’s textile market as of 2018 was around US$ 102.2 billion. It is expected to touch US$ 223 billion market by 2021. It will be growing at a CAGR of 10.14 per cent between 2009-21.
  • The new textile policy aims to achieve US$ 300 billion worth of textile exports by 2024-25. It is expected to create an additional 35 million jobs. By 2022, the Indian textile sector will require additional 17 million workforce.
  • India is world’s largest producer of cotton.
  • During FY20, production of fibre in India stood at 1.443 million tonnes. In fact, it reached 0.629 million tonnes during April–August 2019.
  • Production of yarn grew to 5,862 million kgs in FY19 from 4,712 million kgs in FY11. This implies a CAGR of 2.69 per cent.
  • The technical textile industry is expected to expand at a CAGR of 12.20 per cent during FY18–23 to US$ 32 billion in FY23. In FY18 it reached US$ 18 billion.
  • The Government of India has assigned 207 Harmonized System Nomenclature (HSN) to promote India’s technical textile industry. It is aiming to further increase its market size to US$ 27.72 billion by 2020-21.
  • US$ 100.15 million have been allocated for the Amended Technology Upgradation Fund Scheme (ATUFS).
  • India’s domestic textile and apparel market is currently worth US$ 106 billion. It is expected to grow at a CAGR of 12% to reach US$ 220 billion by 2025-26.
  • Exports of textiles from India reached US$ 38.70 billion during FY19 and US$ 11.98 billion during April-July 2019. It is expected to increase to US$ 82.00 billion by 2021.

Key Players in India


  • Zara, Mango, Benetton, Levi’s, Esprit, Forever 21, Vero Moda, H&M, Promod, Zambiati, Marks&Spencer, Monti


  • Orient Craft, Victoria Mills, Loyal Group, Ruby Mills, Digjam, Richa Fabric, Vardhman, Mandhana, Sutlej Textiles, Premier Textile Mills, Bombay Rayon, Arvind Mills, ITC Wills Lifestyle, DCM
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