Textiles and Garments

  • 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 became the second-largest manufacturer of Personal Protective Equipment (PPE) kits 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.30
  • India is:
    • The second-largest producer of silk in the world
    • Largest consumer and the second-largest producer of cotton with 6 Mn tons of cotton production every year which is about 23% of the world cotton
  •  India is a global leader in jute production, accounting for about 70% of estimated world production.1
  • The total number of looms installed in the jute industry was 48,322, as of 01 January 2018. The installed spindles in jute mills other than 100 % export oriented units were 7,48,612. The maximum installed capacity in jute mills other than 100% export-oriented is about 2.75 mn tonnes annually. 1
  • The Textile industry in India is one of the largest sources of employment generation in the country with more than 45 mn people employed directly in 2018-19.
  • The industry contributes to 7% of industrial output in value terms, 2% of India’s GDP and 12% of the country’s export earnings. 2
  • 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 production supports 5.8 Million farmers & 40-50 mn people in allied sectors. India is also the second-largest producer of silk in the world and 95% of the world’s hand-woven fabric comes from India.
Reasons to Invest
  • Investments opportunities in India in many areas are enormous. Regional Comprehensive Economic Partnership, or RCEP, is an ambitious free trade agreement (FTA) connecting countries for more business and tourism prospects. FTAs provide an entry to these manufacturing nations for the development and investment in the industry. 3
  • The 7th Regional Comprehensive Economic Partnership (RCEP) Intersessional Ministerial Meeting took place in Siem Reap, Cambodia on 02 March 2019. The participating countries of the RCEP are the 10 ASEAN member states and those countries which have existing FTAs with ASEAN – Australia, China, India, Japan, Republic of Korea and New Zealand. 4
  • The Indian market has favourable demographics, rising income levels and brand as well as quality-oriented customers.
  • The following government policies are favourable which provide attractive incentives to the manufacturers: 5
    • Amended Technology Upgradation Fund Scheme (ATUFS)
    • Scheme for Integrated Textile Parks (SITP)
    • Integrated Skill Development Scheme (ISDS)
    • Technology Mission on Technical Textiles (TMTT)
    • Swarnjayanti Gram Swarozgar Yojana (SGSY)
    • Integrated Processing Development Scheme (IPDS)
    • Merchandise Exports from India Scheme (MEIS)
    • Market Development Assistance (MDA)
    • Market Access Initiative (MAI) 
  • An abundance of raw materials such as cotton, wool, silk, jute and manmade fibres.
  • There is a comparative advantage seen in terms of skilled manpower and production cost over the majority of textile producers globally.
  • India’s policies are focused and promising, which give a boost to the overall textile market.
  • India’s value chain starting from production of natural fibre to the production of yarn, fabric and apparel gives India an edge over other countries.
  • India also sees a tremendous amount of skills in the traditional skill sector like handloom and handicraft.
  • The Government of India announced a Special Package to create 10 mn job opportunities and boost textile exports by USD 31 bn, attracting investments worth USD 11.93 bn during 2018-2020. 6
  •  In order to promote handlooms in an overseas market, 3 International Sourcing Expos were participated by Handloom Export Promotion Council organized during the month of September 2020 (i) India Tex Trend Fair at Tokyo, Japan; (ii) Heimtextil Russia at Moscow, Russia and (iii) Sourcing Magic at Las Vegas.21
  • National Technical Textiles Mission approved with a total outlay of INR 1,480 cr.25 


Explore more about infrastructure availability in Textiles and Garments sector >

Recent Announcements

14th July 2021: Government approves continuation of Rebate of State and Central taxes and Levies (RoSCTL) on Export of Apparel/ Garments and Made-ups to ensure a stable and predictable policy regime

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10th July 2021: Union Textile Minister Shri Piyush Goyal takes review of Textile Sector Policies focused on MSMEs and the need for developing special models to support small players.

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17th June 2021: Khadi Village Industries Commission (KVIC) Records Highest Ever Turnover in FY 2020-21 of INR 95,741.74 cr as compared to INR 88,887 cr turnover in 2019-20, thus, registering an increase of 7.71%.

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29th May 2021: In order to boost Khadi Artisans Government Purchase Orders with INR 45cr to KVIC during 2nd Covid-19 Lockdown to help artisans help fight the financial distress.

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16th May 2021: Ministry of Textile under Bureau of Indian Standards (BIS) issued license FFP-2 / N-95 Mask Manufacturers (IS:9473:2002).

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  • 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. 7
  • India's overall textile exports have been USD 31.65 bn in FY19 and are expected to increase to USD 82.00 bn by 2021. 8
  • The production of raw cotton in India is estimated to have reached 33.7 mn bales during 2018-19. 9
  • The total raw silk production has increased by 11% (35,468 MT) during 2018-19 over the previous year 2017-18 (31,906 MT). 9
  • All India arrivals of seed cotton (kapas) during the month of April, 2021 were 12.59 lakh bales.
  • Jute mfg. including floor covering recorded positive growth during May 2021 vis-à-vis of 256.29%.
Growth Drivers
  •  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.26   
  • Under the Weavers’ Mudra Scheme, in February 2021 alone, 1338 number of MUDRA Loans worth INR 6.91 cr were sanctioned.28
  • Two Craft Tourism Villages at Amer (Rajasthan) and Kovalam (Kerala) have been sanctioned for setting up of Crafts Tourism Village, under the Infrastructure and Technology Development scheme.29
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 3,746.20 mn during the period April 2000 to March 2021.17


Read more about Foreign Direct Investment Policy in India >

Sector Policy

Provisions of Budget 2020-21

  • National Technical Textiles Mission (NTTM) to be set up:11
    • With the four-year implementation period from 2020-21 to 2023-24
    • At an estimated outlay of about USD 197.33 Mn
    • The NTTM will (i) focus on research and innovation and indigenous development of speciality fibres (ii) promote awareness amongst users, bring in large scale investments, and encourage high-end technical textiles products (iii) enhance India’s exports of technical textiles by 2024 through focused attention on the highest traded products (iv) create a robust human resource in the country, both through specialized higher education and skill development of technical manpower of the country.

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.20

Production-Linked Incentive (PLI) Scheme27

  • 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.


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



Explore Government policies/ schemes in Textiles and Garments sector >

Financial Support


  • 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. 18
  • 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. 


  • 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.


  • 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.


  • 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.


  • 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)


  • 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 crore to train 10 lakh persons. A total of 242.5 crore has been allocated for the SAMARTH scheme.
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 >

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)
Key Achievements
  • The Government of India is implementing the Scheme for Integrated Textile Park (SITP) which provides support for the creation of world-class infrastructure facilities for setting up textile units, with a grant of up to 40% of the project cost subject to a ceiling of USD 5.33 Mn.16
  • Integrated Textile Park (SITP), 24 greenfield parks have been completed.
  • In 2018-19, 29.93 lakh bales have been imported and 42.83 lakh bales exported up to 31.01.2019.16
  • Under PAHCHAN initiative, 23.68 lakh artisans have been provided Identity Cards up to March 31st 2019. 50000 new artisans will be enrolled under PAHCHAN initiative. 309 Handicrafts training programmes have been proposed under HRD scheme to benefit 7600 artisans directly.16
  • A significant share of 12% in 2018-19 is of Textile and Clothing in India’s total exports.18
  • India contributes 5% in global trade in Textile and Apparel.18
  • The Cabinet Committee on Economic Affairs approved the proposal for mandatory packaging of foodgrains and sugar in jute material for the Jute Year 2020-21.22 
  • On 19/08/2020, Jute Corporation of India and National Seeds Corporation signed MoU to provide 1000 MT of certified good quality seeds to jute farmers in the year 2021-22. 19
  • During the month of November 2020, 58 UIDs have been issued with a project cost of INR. 213.72 cr and Subsidy requirement of INR 20.14 cr under the Amended Technology Upgradation Fund Scheme (A-TUFS).
  • The Indian textile industry is one of the largest in the world and has a share of 5% of global exports in textiles and apparel.24
  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 March 2021, Department for Promotion of Industry and Internal Trade,  https://dipp.gov.in/sites/default/files/FDI_Factsheet_March%2C21.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

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