Textiles and Garments

Summary
  • The Textile industry in India is one of the largest in the world with a large raw material base and manufacturing strength across the value chain.
  • India is the 2nd largest producer of MMF Fibre. India is the 3rd largest* exporter of Textiles & Apparel in the world.
  • India is the 6th largest producer of Technical Textiles with a 6% Global Share (12% CAGR), the largest producer of cotton & jute in the world. *
  • India is:
    • The largest producers, consumers and exporters of cotton in the World.*
    • The largest producer of jute in the world.*
    • The second-largest producer of silk in the world with the production of 34,903 MTs.*
    • The second-largest producer of manmade fibres. *
  • India has a share of 4.6% of the global trade in textiles and apparel, and its exports stood at a significant 10.5% in 2021-22.*
  • As of April 2022, power looms accounted for approximately 58.4% of India's total cloth production, with the country having 385,596 of them.*
  • The industry contributes to 7% of industrial output in value terms, 2% of India’s GDP and 12% of the country’s export earnings. *
  • The share of textile, apparel and handicrafts in India’s total exports was 10.62% in 2021-22. *
    Four International Expos – Indian Handwoven and Home textiles Sourcing were participated by Handloom Export Promotion Council in different countries on virtual mode during March 2021 at Australia & New Zealand; USA & Canada; Japan and Spain, France & Italy.
  • Cotton cultivation has been increased by 5% to 125.02 lakh hectare as against 119.10 lakh hectare during last year in 2022.*
  • The Textile industry in India is one of the second largest employment providers in the country. The sector provides employment to 35.23 lakh persons engaged on about 28.23 lakh handlooms.*
  • The domestic apparel & textile industry in India contributes 2.3% to the country’s GDP, 7% of industry output in value terms.
Reasons to Invest

 

  • The Indian textile exports are aiming to reach the target of $100 bn by 2030. *
  • GOI targets 5 times increase in export of Technical Textiles from USD 2 bn to USD 10 bn in 3 years from 2021. *
  • GOI aims to devise possible strategy to develop a facilitating ecosystem for growth of the Textiles Engineering Industry in India under Make in India & meet 75% of domestic demand by 2026-27. *
  • Government has approved setting up of 7 Mega Integrated Textile Region and Apparel Parks with a total outlay of INR. 4,445 crore in a period of 5 years to attract cutting age technology and boost FDI and local investment in the sector. *
  • 7 PM MITRA Parks to come up in various states with nearly INR 70,000 cr investment and 20 lakhs employment generation.*
  • The growth of Technical Textiles in India has gained momentum in past 5 years, currently growing at 8 % per annum rate. GOI aims to hasten this growth to 15-20% range during next 5 years. *
  • GOI is committed to take the symbolic story of the handicrafts of Kashmir to all parts of the world. *
  • The Handloom weavers/agencies are facilitated to sell their products online and 23 e-commerce platforms have been associated with Ministry of Textiles under a policy framework. *
  • India offers to the world a complete value chain solution from farm to fashion giving us a competitive edge by shortened lead times to reach our buyers.*
  • GOI has set a target for apparel sector as to double the production and triple the exports to achieve 15% growth.*
  • The global apparel market which was just under 1.5 tn USD in 2013 is expected to generate revenues to the tune of 1.9 tn in 2025 before it closes to 2 tn in 2026.*
  • Textile sector has the potential to grow to INR 20 lakh Cr industry in the next 5 years (2027) with exports of INR 10 lakh Cr.*
  • Government of India wants to create 75 textile hubs like Tiruppur. *

Explore more about infrastructure availability in Textiles and Garments sector >

Key Achievements
  • India’s exports of 207 Technical Textile products under National Technical Textiles Mission have grown from USD 2.18 bn in 2020-21 to USD 2.84 bn in 2021-22 with growth rate of 30.5%.*
  • The imports 207 Technical Textile products have grown from USD 1.7 bn in 2020-21 to USD 2.46 bn in 2021- 22, with a growth rate of 44.6%.*
  • 30 parks completed under Scheme for Integrated Textile Park (SITP).*
  • Khadi is making new records daily, and created 1.72 Cr employment from 1st April 2022 to 31st January 2023.*
  • From 01st April 2022 to 31st January 2023, Khadi and Village Industries Commission produced a total of 77887.97 Cr and sold 108571.84 Cr.*
  • The Handicrafts exports during the year 2021-22 was INR 33,253 cr registering a growth of 29.49% over the previous year.*
  • India's annual textile and apparel export stood at USD 44.4 bn in FY 2022 with a 41% increase compared to FY 2021. *
  • Western Railways’ Mumbai Division operate 100th Textile Express within span of five months reflects growing confidence of Surat textile sector on Railways. *
  • Out of 56 Textile Parks approved/ sanctioned, 24 parks have been completed as per SITP guidelines. In these parks, a total of 1,757 units are operational, INR 12470 cr (approx) of investment have been mobilized and have generated employment for 95,644 people till date. *
  • 1,75,208 beneficiaries are covered under Ambedkar Hastshilp Vikas Yojana (AHVY) Scheme.*
  • 100% subsidy is given to women weavers for construction of individual workshed. Kamladevi Chattopadhyay Award has been instituted specifically for women weavers. *
  • Ministry of Textiles clears 20 Strategic Projects in the areas of Specialty Fibres and Geotextiles under the Flagship Programme National Technical Textiles Mission (NTTM). *
  • Total NMG rakes loaded from Chalthan-67 & from Udhna-33. Textile Express fetched total revenue to the tune of INR 10.2 cr to Railways. *
  • Silk Samagra-2 scheme successful in achieving an increase of raw silk export from India to other countries. *
Recent Announcements

23rd May 2023: MoU signed for PM MITRA Park in Dhar, Madhya Pradesh

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19th April 2023: PM Mitra Mega Textiles Park set up across Lucknow and Hardoi districts in Uttar Pradesh

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12th April 2023: Ministry of Textiles has announced the introduction of 02 Quality Control Orders (QCOs) for 31 technical textile items in Phase-1.

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29th March 2023: CM Bommai Launches Kalaburagi Mega Textile Park Under PM-MITRA Scheme, To be set up In 1550 Acres Land At Cost of INR 1834 cr.

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24th March 2023: Sh. Piyush Goyal launches Prime Minister's Mega Integrated Textile region & Apparel park in Virudhunagar Tamil Nadu via VC

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Statistics
  • MSP Price for Raw Jute (TD-3 equivalent to earlier TD-5 grade) has been fixed at INR 5050 per quintal for 2023-24 season. *
  • India has the largest acreage with 12.4 mn hectares under cotton cultivation, which is around 36% of the world area of 34.1 mn hectares. *
  • India's exports to Textile and Apparel industry for 2022-23 was USD 28,835 mn.*
  • India's exports to Handicrafts industry for 2022-23 was USD 1451 mn.*
  • Production of cotton in the country reported for FY 2022-23 is 341.91 lakh bales and estimated consumption is 311 lakh bales. **
  • Exports of Cotton Yarn/ Fabs./ Madeups, Handloom products etc. values at USD 719.03 mn in October 2022. *
  • Exports of RMG of all Textiles values at USD 988.72 mn in October 2022. *
  • Exports of Jute Manufacturing including Floor Covering at USD 41.72 mn in June 2022 and records positive growth vis-à-vis June 2021 of 21.92%. *
  • Exports of Handicrafts excluding Handmade carpet values USD 98.05 mn in the same period. *
  • Exports of Carpet at USD 130.17 mn in June 2022. *
  • USA was the top export destination accounting for 27% share, followed by EU (18%), Bangladesh (12%) and UAE (6%). *
Growth Drivers
  • Ministry of Textiles issued PAHCHAN cards to 30 lakh+ handicrafts artisans and 30 lakh+ handloom weavers across the country
  • Yarn worth INR 130 cr transported through India Post in FY 22-23 facilitating growth of Handloom industry by easing logistics and transportation costs. *
  • Ministry of Textiles has developed Craft Villages in select Handloom and Handicraft pockets of the country for integrated sustainable development of Handlooms, crafts and tourism with the combined effort of both the State and the Central Governments. *
  • Under the Weavers’ Mudra Scheme, 1,17,678 loans were sanctioned, during the last 5 years.*
  • Eight Craft Villages taken up under ‘Linking textile with Tourism’ to promote craft and tourism at a single location.*
  • The India Handloom Brand (IHB) was launched for branding and promotion of high quality, niche handloom products with zero defects and zero effect on environment. 1714 registrations have been issued as on 31st October 2021. IHB registered holders are also facilitated for participation in domestic and international marketing expos/events for brand promotion. *
  • 74 significant traditional handloom products and 6 handloom logos registered under the Geographical Indications of Goods (Registration and Protection) Act, 1999 to safeguard their interests against illegal manufacturing / marketing of GI registered handloom products, as on 15th March 2023. *
  • 8 mega handloom clusters have been provided financial assistance for different projects in the country, namely Varanasi (Uttar Pradesh), Sivasagar (Assam), Virudhunagar (Tamil Nadu), Murshidabad (West Bengal), Prakasam& Guntur districts (Andhra Pradesh), Godda & neighbouring districts (Jharkhand) Bhagalpur (Bihar) and Trichy (Tamil Nadu). *
  • Cotton Council of India, under Chairmanship of Shri Suresh Bhai Kotak is being formed to bring out tangible improvement in the field of cotton industry. *
  • The Central Government has lifted price cap of INR 6500/- per quintal for TDS grade of raw jute fixed to help the farmers, Mills and Jute MSME sector wherein over 7 lakhs people are dependent on the jute trade in addition to about 40 lakhs jute farmers.
  • Eight Craft Villages taken up under ‘Linking textile with Tourism’ to promote craft and tourism at a single location. *
FDI Policy
  • 100% FDI is allowed under the automatic route in the Textile Industry in India. 10
  • The cumulative FDI equity inflow in the Textiles (Including dyed, printed) industry is USD 4.16 bn during the period April 2000 to March 2023. *

 

Read more about Foreign Direct Investment Policy in India >

Production Linked Incentive (PLI) Scheme

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has given its approval to introduce the Production-Linked Incentive (PLI) Scheme in Textiles Products for Enhancing India’s Manufacturing Capabilities and Enhancing Exports – Atmanirbhar Bharat.

A total of 67 applications have been received. Government has approved 64 applications with a proposed total investment is INR 19,798 cr and projected turnover of INR 1,93,926 crore with a proposed employment of 2,45,36 persons. *

Financial Outlay- INR 10,683 cr

Products- Man-Made Fibre Segments and Techincal Textiles

For more details on PLI Schemes, Click Here

Sector Policy
  • No restriction on exports of Dalbergia sissoo timber-based items in a single consignment for shipment without CITES permits if the weight of each individual item of this consignment is less than 10 kg. *

Wool Development Scheme*

  • Ministry of Textiles approved Pashmina Wool Development Scheme under Integrated Wool Development Programme (IWDP) with a budget allocation of INR 29.25 Cr for 2021-22 to 2025-26.

  • Provision has been made to provide financial assistance in form of Revolving Fund for procurement/marketing of pashmina wool in UT of Ladakh and UT of J&K. A project to set up Dehairing plant along with ancillary machines at Leh, UT of Ladakh with project cost of INR 19.75 Cr. has been sanctioned and out of it INR 12.92 Cr. has been released. 

Integrated Wool Development Programme*

  •  Ministry of Textiles has approved the implementation of IWDP from 2021-22 to 2025-26 with total financial allocation of Rs. 126 Crore.

Wool Processing Scheme*

  • The Central Wool Development Board has sanctioned a new project for wool processing machines with a total cost of INR 2.19 cr. Due to this, the wool growers/farmers were benefited by getting better prices of wool.

Production-Linked Incentive (PLI) Scheme*

  • Hon’ble Prime Minister, Shri Narendra Modi has given its approval to introduce the Production-Linked Incentive (PLI) Scheme in Textile and Garments Sector through the Ministry of Textiles of with a financial outlay of INR 10,683 cr over a five-year period for Enhancing India’s Manufacturing Capabilities and Enhancing Exports – Atmanirbhar Bharat.

Toy Manufacturing*

  • In order to make India Toy manufacturing hub various initiatives have been taken so far.In order to make India Toy manufacturing hub various initiatives have been taken so far.
  • 13 toy clusters have been identified.
  • A National Action Plan for Indian Toy Story has been made with the collaboration of 14 Ministries/ Dept. of Govt. of India
  • The scheme is being implemented throughout the country to make available Yarn to Handloom weavers at reasonable price.
  • Under the Scheme, freight charges are reimbursed for all types of yarn; and component of 15% price subsidy is there for cotton hank yarn, domestic silk, wool and linen yarn and blended yarn of natural fibres, with quantity caps.

Raw Material Supply Scheme

  • The scheme is being implemented throughout the country to make available Yarn to Handloom weavers at reasonable price.
  • Under the Scheme, freight charges are reimbursed for all types of yarn; and component of 15% price subsidy is there for cotton hank yarn, domestic silk, wool and linen yarn and blended yarn of natural fibres, with quantity caps. 

 

Explore Government policies/ schemes in Textiles and Garments sector >

Financial Support
  • 168 energy-intensive textile units notified in the Perform, Achieve, Trade (PAT) scheme

Union Budget 2023-24

  • The allocation of the Textiles Sector in Budget 2023-24 is INR 4,389.34 cr.* 

Jute Smart: *

  • Jute-Smart (Jute Sacking Supply Management and Requisition Tool) is an e-Governance Initiative for Procurement.
  • The JUTE-SMART software has become operative since 01 November 2016. Indents for a total quantity of around 85.6 lakh bales, worth INR 21.97 thousand cr (approx.), have already been placed through JUTE-SMART, from the month of November to October 2019. 
  • Jute Packaging Materials- This scheme aims at enabling the jute industry to receive steady orders. For the current jute year 2020-21, 100% of the foodgrains and 20% of sugar are required to be mandatorily packed in jute bags. The total purchase of jute bags under this mechanism constitutes 70.16% of the total jute goods production. 
  • The Cabinet Committee on Economic Affairs has approved reservation norms for mandatory use of jute in packaging for the Jute Year 2021 -22 (1st July, 2021 to 30th June, 2022). It provide for 100% reservation of the foodgrains and 20% of sugar to be compulsorily packed in jute bags.

Upgradation Fund Scheme: *

  • There is a provision of one-time capital subsidy for eligible benchmarked machinery for the following:
    • For garments and technical textiles segments, at the rate of 15%, with a cap of USD 4.6 mn
    • For weaving, processing, jute, silk and handloom segments, at the rate of 10%, with a cap of USD 3 mn
  • An outlay of USD 2.7 bn has been approved for seven years to meet the committed liabilities of USD 1.9 bn and USD 800 mn for new cases under ATUFS.

Integrated Skill Development Scheme: *

  • The Ministry of Textiles is implementing the Integrated Processing Development Scheme (IPDS) to enable the textile processing sector in meeting environmental standards. This will be achieved through appropriate technology including marine, riverine and Zero Liquid Discharge (ZLD).
  • The Government of India provides financial assistance up to 50% of project cost for Common Effluent Treatment Plants (CETPs) subject to a ceiling of USD 11.5 mn.
  • A total of 11.14 lakh persons trained in various diverse segments of Textiles under the comprehensive Integrated Skill Development Scheme.

Integrated Scheme for Development of Skill Industry: *

  • Integrated Scheme for Development of Silk Industry is implemented with an outlay of USD 300 mn from 2017-18 to 2019-20. The Scheme has 4 components:
    • Research & Development (R&D), training, transfer of technology and IT initiatives
    • Seed organizations and farmers’ extension centres
    • Coordination and market development for seed, yarn and silk products
    • Quality Certification System (QCS) by creating amongst others a chain of silk testing facilities.

Infrastructure Development Scheme: *

  • Scheme for Integrated Textile Park (SITP) 
  • Integrated Processing Development Scheme (IPDS)
  • Scheme for Additional Grant for Apparel Manufacturing Units under SITP (SAGAM)
  • Scheme for Incubation in Apparel Manufacturing (SIAM)
  • Scheme for Textile Industry Workers’ Accommodation (STIWA)

Skill Development Scheme: *

  • The Government has approved a skill development scheme titled SAMARTH, a Scheme for Capacity Building in Textile Sector, covering the entire value chain of the textile sector, excluding Spinning and Weaving in the organized sector, on pan India basis, including the state of Tripura, for a period of three years from 2017-18 to 2019-20, with an outlay of INR 1300 cr to train 10 lakh, persons.
  • A total of 242.5 cr has been allocated for the SAMARTH scheme.

Yarn Supply Scheme: *

  • Yarn Supply Scheme (YSS) is being implemented throughout the country through National Handloom Development Corporation to make available all types of yarn at Mill Gate Price.
  • Under the Scheme, freight charges are reimbursed for all types of yarn and a component of 10% price subsidy also exists on hank yarn, which is available for cotton, domestic silk, wool and linen yarn with quantity caps.

MSP Operations for Cotton *

  • CCI has made adequate arrangements in all 11 major cotton-growing states by opening 474 procurement centres in 143 districts, to meet any eventuality of MSP operations. The Government extends full price support to CCI for undertaking MSP operations in cotton.
Investment Opportunities
  • The Textile industry in India has a robust presence in the entire value chain.
  • All levels of textile value chain i.e. from fibre/ filament to garment/speciality fabrics manufacturing at large scale are available.
  • India has an extensive custom of textile and apparel manufacturing with infrastructure spread across the country in numerous clusters.
  • Fabric processing set-ups are for all kind of natural, synthetic and speciality textiles.
  • Opportunities for investments in retail brands are immense.

 

Explore projects to invest in Textiles and Garments sector >

Sector Reports
  1. Annual Report 2021-2022
  2. Year-End- Review of Department of Textiles– 2022
Foreign Investors
  • Rieter (Switzerland)
  • TrUtzschler (Germany)
  • Soktas (Turkey)
  • Zambiati (Italy)
  • Bilsar (Turkey)
  • Monti (Italy)
  • CMT (Mauritius)
  • E-land (S. Korea)
  • Nissinbo (Japan)
  • Marubeni (Japan)
  • Skaps (USA)
  • Ahlstorm (USA)
  • Terram (UK)
  • Strata Geosystems (USA)
  • Marks & Spencer (UK)
  • Zara (Spain)
  • Mango (Spain)
  • Promod (France)
  • Benetton (Italy)
  • Espirit (USA)
  • Levi’s (USA)
  • Forever 21 (USA)
Agencies

1. Development Commissioner (Handicrafts)
2. Jute Commissioner
3. Ministry of Textiles
4. Office of Development Commissioner (Handlooms)
5. Office of the Textiles Commissioner
6. Textiles Committee

Sources
  1. Brief/ Background note on Jute Sector, Ministry of Textiles, http://texmin.nic.in/sites/default/files/Textiles_Sector_Jute.pdf 
  2. Annual Report 20119-20, Ministry of Textiles, http://texmin.nic.in/sites/default/files/AR_MoT_2019-20_English.pdf
  3. Global shifts in the Textile industry and India’s position, FICCI, http://ficci.in/spdocument/20817/3-FICCI-TAG-2016-Whitepaper.pdf 
  4. The 7th Regional Comprehensive Economic Partnership (RCEP) Intersessional Ministerial Meeting Concludes in Cambodia, Ministry of Textiles, PIB, http://pibarchive.nic.in/newsite/PrintRelease.aspx?relid=189151
  5. Global shifts in the Textile industry and India’s position, FICCI, http://ficci.in/spdocument/20817/3-FICCI-TAG-2016-Whitepaper.pdf 
  6. Year End Review-2019: Ministry of Textiles, PIB,  https://pib.gov.in/Pressreleaseshare.aspx?PRID=1597798
  7. Year End Review-2019: Ministry of Textiles, PIB,  https://pib.gov.in/Pressreleaseshare.aspx?PRID=1597798
  8. Indian Textile Industry – Update, Industry report of Emerging Markets Information Service (EMIS)
  9. Year End Review-2019: Ministry of Textiles, PIB,  https://pib.gov.in/Pressreleaseshare.aspx?PRID=1597798
  10. Consolidated FDI Policy, https://invest-india-revamp-static-files.s3.ap-south-1.amazonaws.com/2020-04/FDI%20Policy%202019%20revised_19%20April%202020.pdf
  11. KEY HIGHLIGHTS OF UNION BUDGET 2020-21, Ministry of Finance, PIB, https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1601474
  12. Brief/ Background note on Jute Sector, Ministry of Textiles, http://texmin.nic.in/sites/default/files/Textiles_Sector_Jute.pdf 
  13. Annual Report 20119-20, Ministry of Textiles, http://texmin.nic.in/sites/default/files/AR_MoT_2019-20_English.pdf
  14. Year-End Review-2019: Ministry of Textiles, PIB,  https://pib.gov.in/Pressreleaseshare.aspx?PRID=1597798
  15. Annual Report 20119-20, Ministry of Textiles, http://texmin.nic.in/sites/default/files/AR_MoT_2019-20_English.pdf
  16. Year-End Review-2019: Ministry of Textiles, PIB,  https://pib.gov.in/Pressreleaseshare.aspx?PRID=1597798
  17. Factsheet on FDI - April 2000 to December 2021, Department for Promotion of Industry and Internal Trade,   https://dpiit.gov.in/sites/default/files/FDI%20Factsheet%20December%2C%202021.pdf
  18. Annual Report 20119-20, Ministry of Textiles, http://texmin.nic.in/sites/default/files/AR_MoT_2019-20_English.pdf
  19. Monthly Achievement Report, Ministry of Textiles, http://texmin.nic.in/sites/default/files/MonthlySummaryTextiles-English-August2020.pdf
  20. Monthly Achievement Report, Ministry of Textiles, http://texmin.nic.in/sites/default/files/MonthlySummaryTextiles-English-August2020.pdf
  21. Monthly Achievement Report, Ministry of Textiles, http://texmin.nic.in/sites/default/files/MonthlySummaryTextiles-English_September2020.pdf
  22. Monthly Achievement Report, Ministry of Textiles, http://texmin.nic.in/sites/default/files/MonthlySummaryTextiles-English-October2020.pdf
  23. Monthly Achievement Report, Ministry of Textiles, http://texmin.nic.in/sites/default/files/MonthlySummaryTextiles-English-November2020.pdf
  24. PIB Release, https://pib.gov.in/PressReleasePage.aspx?PRID=1671912
  25. PIB Release, https://pib.gov.in/PressReleseDetail.aspx?PRID=1684735
  26. Monthly Achievement Report, Ministry of Textiles, http://texmin.nic.in/sites/default/files/MonthlySummaryTextiles-English-December2020.pdf 
  27. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1705770
  28. Monthly Achievement Report, Ministry of Textiles,  http://texmin.nic.in/sites/default/files/MonthlySummaryTextiles-English-February2021.pdf
  29. Monthly Achievement Report, Ministry of Textiles, http://ministryoftextiles.gov.in/sites/default/files/Monthly%20sum%20March%202021.pdf
  30. PIB Release,   https://www.pib.gov.in/PressReleasePage.aspx?PRID=1736015
  31. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1738191

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