Textile Industry
The Textile industry in India traditionally, after agriculture, is the only industry that has generated huge employment for both skilled and unskilled labour. The textile industry continues to be the second-largest employment generating sector in India. It offers direct employment to over 35 million in the country.
India is first in global jute production and shares 63% of the global textile and garment market. India is second in global textile manufacturing and also second in silk and cotton production. 100% FDI is allowed via automatic route in textile sector.
India is the second largest producer of fibre in the world and the major fibre produced is cotton. Other fibres produced in India include silk, jute, wool, and man-made fibers. 60% of the Indian textile Industry is cotton based. India is the largest producer of raw jute and jute goods and the third largest exporter after Bangladesh. There were about 80 jute mills in India in 2010–11, most of which are located in West Bengal. The domestic textiles and apparel industry contributes 5% to India’s GDP, 7% of industry output in value terms and 12% of the country’s export earnings. India is among the world’s largest producers of Textiles and Apparel. The domestic textiles and apparel industry contributes 5% to India’s GDP, 7% of industry output in value terms and 12% of the country’s export earnings.
The textiles and apparel industry in India is the second-largest employer in the country providing direct employment to 45 million people and 60 million people in allied industries. The share of India’s textiles and apparel exports in mercantile exports is 11% for the year 2019-20.
India has also become the second-largest manufacturer of PPE in the world. More than 600 companies in India are certified to produce PPEs today, whose global market worth is expected to be over $92.5 bn by 2025, up from $52.7 bn in 2019.
• FDI in the textiles and apparel industry has reached up to $3.75 bn till March 2021
• India’s exports of textiles and apparel are expected to grow to $65 bn by 2025-26, growing at a CAGR of 11%
• To double the industry size to $190 bn by 2025-26, 7 mega textile parks have been planned
The Indian textiles industry is extremely varied, with the hand-spun and hand-woven textiles sectors at one end of the spectrum, while the capital intensive sophisticated mills sector at the other end of the spectrum.b The close linkage of the textile industry to agriculture (for raw materials such as cotton) and the ancient culture and traditions of the country in terms of textiles make the Indian textiles sector unique in comparison to the industries of other countries. The Indian textile industry has the capacity to produce a wide variety of products suitable to different market segments, both within India and across the world.
Some of the major investments in the Indian textiles industry are as follows:
In May 2018, textiles sector recorded investments worth Rs 27,000 crore (US$ 4.19 billion) since June 2017.
The Government of India announced a Special Package to boost exports by US$ 31 billion, create one crore job opportunities and attract investments worth Rs 800.00 billion (US$ 11.93 billion) during 2018-2020. As of August 2018, it generated additional investments worth Rs 253.45 billion (US$ 3.78 billion) and exports worth Rs 57.28 billion (US$ 854.42 million).