India is among the largest producers of textile and apparel in the world. It is an important sector for the economy in terms of output, employment, exports and foreign exchange earnings. The textile industry is divided into two broad segments; the unorganised sector and the organised sector. The unorganised sector consists of handlooms, handicrafts and sericulture, operated on a small scale using traditional tools and methods. The organised sector includes the spinning, garment and apparel segments that use modern machinery and tools. Top yarn manufacturers invest in modern technology and techniques to produce quality yarn for further production into fabrics and apparel.

The Indian textile industry offers a variety from the handspun textiles sector to the intensive mills. There is also a linkage between the textile and agriculture industries due to the dependency of textiles on agriculture for raw materials. The textile manufacturers in India produce a variety of products that are suitable for market segments within India and across the world.

The Textile Industry of India:

• India is the largest producer of cotton and jute in the world
• The second-largest manufacturer of PPE and producer of polyester, silk and fibre in the world
• Second largest employment provider in India
• The domestic textiles and apparel industry contributes 2% to India’s GDP
• The textile industry holds a 12% share in the overall exports
• The textile industry generates employment for over 45 million people

Role of the Textile Industry on the Indian Economy:

The textile industry in India has strengths across the value chain from fibre and yarn to fabric and apparel. With a wide variety of products, the Indian textile industry fulfills the demands across the globe. 

In 2018, the textile and apparel industry stood at $140 billion in which $100 billion was consumed domestically and $40 billion was exported to the world market.

The domestic consumption of $100 billion was divided into apparel at $74 billion, technical textiles at $19 billion and home furnishings at $7 billion. Exports, on the other hand, comprised textile exports at $20.5 billion, apparel exports at $16.1 billion and handloom textiles at $3.8 billion.

Driving Growth in the Textile Industry

The textile and apparel sector has a lot of potential to grow further with an abundance of raw materials, market demand and resources. Here are the key growth drivers for the textile industry.

• An abundance of Raw Materials
• Presence of entire value chains
• Manufacturing costs are competitive
• Skilled manpower is available
• There is a growing domestic market
• Organised retail market and e-Commerce
• Production-Linked Incentive (PLI) Scheme in man-made fiber and technical textiles
• Rising per capita income and preference for brands
• Increased focus on technical textiles due to growth of end-user industries

India has various advantages in the textile sector. With the right equipment and strategies, it can continue to grow. The Indian textile industry has a significant presence in the domestic and global markets. The industry is providing and meeting the most basic requirement of people and thus holds importance.

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