The Indian textile industry is the second largest industry in India after agriculture. Over 35 million people in the country are directly employed in the sector, while around 60 million are provided indirect employment in the production of raw materials and other related trades. India’s rich and varied traditional culture combined with robust agriculture has bestowed a unique position upon India in the world textile segment. The industry ranges from traditional handlooms, wool, silk, handicrafts on one end of the spectrum to the organized textile industry on the other. The organized textile and apparel industry comprises of two segments – yarn and fiber, and processed fabrics and apparel. Favorable policies and demographics, phenomenal growth in retail, and rising spending powers have escalated the position of the industry as an imposing contributor to the national economy.
The Indian textile industry is expected to grow from a market size of USD 137 billion (Rs. 942849.07 crores) in 2016 to USD 226 billion (Rs. 1555408.84 crores) in 2023. Out of the total industry output, contribution by the textile industry stands at 7%. It contributes 2% to the country’s GDP and 15% of the total revenue generated by exports. India’s textile exports are estimated to reach USD 82 billion (Rs.564351.88 crores) by 2021 from USD 31.65 billion (Rs. 217952.97 crores) in 2019. Foreign exchange inflows see a contribution of 27% from the textile and apparel industry. The cotton production of India has reached 36.1 million bales in 2019, retrieving India’s position as the largest producer of cotton. India’s place in the global context is noteworthy. It is the second-largest producer of silk with 18% market share; the largest producer of jute in the world; and fifth largest producer of synthetic fibres and yarns. The textile sector has received an allocation of USD 701 million (Rs. 4831.48 crores) in the recent “Union Budget 2019-2020.”
How can we help?
We have vast experience with clients in the textile sector, which enables us to devise your financial, tax, entry strategy, entity strategy, foreign direct investment strategy and regulatory strategies in an informed manner to enable your textile business to derive the desired value and results.
For our research paper on Industry opportunities and analysis please download our report: