• Rising per capita income, favorable demographics and a shift in preference to branded products to boost demand.
  • The domestic textile industry in India is projected to reach USD 250 billion by 2019 from USD 150 billion in July 2017.
  • Favourable trade policies and superior quality to drive textile exports.
  • Textile and apparel exports from India is expected to increase to USD 82 billion by 2021 from USD 37.85 million in 2018.
  • Increase in domestic demand set to boost cloth production
  • Total cloth production in India in FY 17 was 63.6 billion square
  • Cloth production between April 2017-Februay 2018 stood at 61.95 billion square metres (provisional).
  • The Directorate General of Foreign Trade (DGFT) has revised rates for incentives under the Merchandise Exports from India Scheme (MEIS) for two subsectors of Textiles Industry – Readymade garments and Made ups – from 2 percent to 4 percent.

Advantage India

  • Huge investments are being made by Government under Scheme for Integrated Textile Parks (SITP)-(USD 184.98 million) and Technology Upgradation Fund Scheme (TUFS)-(USD 216.25 million released in 2017) to encourage more private equity and to train the workforce.
  • Abundant availability of raw materials such as cotton, wool, silk, and jute.
  • India enjoys a comparative advantage in terms of skilled manpower and in the cost of production relative to major textile producers.
  • Free trade with ASEAN countries and proposed agreement with European Union will boost exports.

Key Facts

  • The fundamental strength of the textile industry in India is its strong production base of a wide range of fiber/yarns from natural fibers like cotton, jute, silk, and wool to synthetic/man-made fibers like polyester, viscose, nylon, and acrylic.
  • India’s textiles industry contributes 10 percent to the manufacturing production of India.
  • It contributes 2 percent to the GDP of India and employs more than 45 million people.
  • The sector contributes 13 percent to the export earnings of India.
  • With production of 6,106 million kg, India was the largest producer of cotton in 2016-17.
  • India is the 2nd largest producer of Manmade Fibre and Filament, globally, with the production of around 2,11 million kg in 2016-17


  • Exports of textiles from India reached USD 32.75 billion during April – February 2018.
  • The Goods and Services Tax that rolled out in July 2017 is expected to make imported garments cheaper by 5-6 percent, as the GST regime will levy 5 percent tax for both domestic textile manufacturers and importers.
  • India took the top spot in market share in the men/ boys knitwear shirts cotton’ category with respect to garment exports to the US between January-June 2017.

Cotton textiles dominate exports

  • The domestic textile and apparel have been one of the largest contributors to India’s exports.
  • During the 2017-18, export of textiles has reached 21.15 billion.
  • Man Made garments had a share of 25.60 percent in exports and
  • reached USD 5,413 million.

Key Textiles & Apparel Zones in India