TEXTILE SECTOR OVERVIEW
Statistics, news & updates: everything you need to know about the Textile Industry in India
Summary/Snapshot
The domestic textiles and apparel industry contributes 5% to India’s GDP, 7% of industry output in value terms and 12% of the country’s export earnings.
It employs more than 45 million workers.
The sector is marked by low entry barriers, as the capital required for business entry is low with technology and skills freely available.
100 per cent FDI is permitted in the sector. Cumulative FDI inflows into the textiles sector stood at over US$ 4.03 billion from April 2000-June 2022.
Due to the cost-effectiveness, durability, and versatility of textiles, India is likely to be a key growth market for the technical textile sector.
Cotton farming employs 5.8 million farmers and 40-50 million workers in related industries. India is also the world’s second-largest producer of silk, accounting for 95 percent of all hand-woven cloth.
The domestic textiles and apparel market stood at an estimated US$ 152 bn in 2021
India has the 2nd largest market share in yarn and home textiles after China. Nearly two-thirds of India’s exports of textile are to the US and Europe.
Growth Drivers
India’s exports of textiles and apparel are expected to grow to $65 bn by 2025-26, growing at a CAGR of 11%.
7 mega textile parks have been planned to double the industry size to $190 billion by 2025-26.
The demand for technical textiles is on the rise due to the growth in end-user usage in other sectors like Defense, Healthcare and the Automobile industry is on the rise.
A financial outlay of $13 billion dollars is approved in Production-Linked Incentive (PLI) Scheme in Man-made fiber and technical textiles.
Sub industries
Accessories
Fabric – Woven & non-woven
Fibres & filaments
Textile Machinery
Rope, Cordage, Twine, Tyre cord & fabric
Technical Textiles/Geotextiles
Opportunities
- India has the potential to become a one-stop sourcing destination for ASEAN enterprises, as there are various chances for textile manufacturing companies from the 10-nation bloc to invest in India.
- The government intends to attract international investment and provide employment prospects for 35 million people, according to a new draught of the National Textile Policy.
Challenges
The weaving/Knitting sector contributes to less than 10% of the total production. This comes out to be the weakest link in the supply chain suffering from problems such as high power tariffs and low investments in technology.
The Processing sector is largely decentralized with low levels of automation, leading to inconsistency in production and meeting quality standards.
Prices of imported raw materials like dyes have seen an upward increase after many units in China were shut down due to pollution norms.
Textile factories in India are not fully automated and remain labor-intensive.
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Key Investment Opportunities
India’s textile sector is well-represented throughout the value chain.
All levels of the textile value chain are available, from fiber/filament through large-scale garment/specialty fabric manufacture.
India has a long history of textile and clothing production, with infrastructure strewn around the country in a variety of clusters.
Fabric processing equipment is available for a wide range of natural, synthetic, and specialty fabrics.
There are numerous opportunities to invest in retail brands.
Recent Developments
- Huge funds in schemes such as Integrated Textile Parks (SITP) (US$ 184.98 million) and Technology Upgradation Fund Scheme (US$ 961.11 million) released by the Government during 2015-16 to 2019-22 to encourage more private equity and provide employment.
- India’s textile and apparel exports (including handicrafts) stood at US$ 44.4 billion in FY22, a 41% increase YoY. Exports of readymade garments including cotton accessories stood at US$ 6.19 billion in FY22.
- The Government approved the Mega Integrated Textile Region and Apparel (MITRA) Park scheme worth US$ 594.26 million to establish seven integrated mega textile parks with state-of-the-art infrastructure, common utilities and R&D lab over a three-year period, which will boost textile manufacturing in the country.
Key Players in India
National
- Arvind Limited
- Vardhman Textiles Limited
- Welspun India Limited
- Raymond Limited
- Trident Limited
- KPR Mill Limited
- Page Industries Limited
- Nitin Spinners Limited
- Rupa & Company Limited
- Himatsingka Seide Limited
International
- TJX Companies
- V.F Corporation
- Lululemon Athletica
- Shenzhou International Group Holdings
- Zalando SE
- Prada
- Under Armour
- Ralph Lauren Corporation
- PVH
- Tapestry
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