India is the 3rd largest consumer market and the 5th largest exporter of textile in the world with domestic consumption of US$ 97 billion and exports worth US$ 40 billion. The huge availability of textile raw material such as wool, silk jute, and cotton made India a sourcing hub. The textiles industry of India accounts for 24% of the world's total spindle capacity and about 8% of the total rotor capacity of the world. India’s textile industry plays a very important role in the national economy for net foreign exchange earnings. India’s textiles industry contributed 13% of the industrial production in FY20. It gave employment to more than 4.5 crore workers including 35.22 lakh handloom workers in FY20 and also contributed 2.3% to the GDP of India. The sector contributed 12% to India’s export earnings in FY20. From US$ 22.95 billion in FY20 India’s textiles and apparel, export is expected to increase to US$ 82.00 billion by 2021. In the last five years, the textiles sector has witnessed a sharp rise in investment. The industry received Foreign Direct Investment worth US$ 3.45 billion from April 2000 to June 2020. By 2024, exports in the textiles & garments industry are expected to reach US$ 300 billion. Textile and apparel industry exports are forecasted to reach $300 bn by 2024-25.
7 mega textile parks have been planned to double the industry size to $300 bn by 2025-26,.
Indian textile is unique in comparison to the other countries because of its traditions which provide the industry with the capacity to produce a variety of products catering to the needs of different market segments both in India as well as for the entire world.
The textile industry encompasses a range of industries that utilize a variety of natural and synthetic fibers to produce fabrics. The textile industry can be divided into two categories, namely the organized mill sector and the unorganized mill sector. Various initiatives are being made to take urgent and adequate steps to attract investment and encourage widespread development and growth in the unorganized sector.
The Indian textile industry can be divided into many segments such as:
- Cotton – India is the second-largest cotton and cellulosic fiber-producing country in the world. It provides employment to a huge population but its production is seasonal in nature. Cotton exports are expected to jump 40% in 2020-21
- Silk – India stands as the 2nd largest producer of silk and contributes around 18% to the total world raw silk production. Tasar, Eri, Mulberry, and Muga are the four main types of silk produced in the country and are a labor-intensive sector. The total silk and silk products export accounted for US$ 22.98 million by October 2020.
- Wool – India ranks as the 3rd largest sheep populated country in the world, having about 60.15 million sheep, producing 45 million kg of raw wool, and accounts for 3.1% of total world wool production. India is 6th amongst clean wool producer countries and stands 9th among greasy wool producers. Export of fabrics, woolen yarn, made-ups, etc. was US$ 56.51 million between April 2020 to October 2020
- Man-Made Fibres –India is ranked sixth in the export of Manmade Fibre (MMF) textiles and India is the second-largest world producer of polyester and viscose, India is the fourth largest synthetic fibers/yarn producer globally. Growth in the man-made fibers sector has led to significant changes in the Indian textiles industry. Yarn export in October 2020, accounted for US$575 million. The export of man-made staple fiber from April 2020 to September 2020, stood at US$ 545.80 million and it was US$ 117.89 million in September 2020
- Jute – India ranks as the largest producer and second-largest exporter of eco-friendly jute goods.