India’s Position in Global Textile Exports
India has cemented its position as the sixth-largest exporter of textiles and apparels globally, playing a crucial role in the country’s Gross Domestic Product (GDP), industrial production, and exports. According to the latest Economic Survey, India’s textile and apparel industry remains a key pillar of the economy, showcasing resilience even during the COVID-19 pandemic (2020–2022).
In 2023, India exported textile items worth USD 34 billion, reflecting the strength of its production and supply chain capabilities. The export basket breakdown includes:
- Apparel: 42%
- Raw materials/Semi-finished materials: 34%
- Finished non-apparel goods: 30%
Key Export Destinations
The survey also highlighted the major international markets for Indian textiles:
- Europe and the US: The largest consumers of India’s textile exports, accounting for 66% of apparel exports, 58% of finished non-apparel goods, and 12% of raw materials/semi-finished materials.
- UK (8%) and UAE (7%): Other prominent destinations that contribute significantly to India’s textile trade.
Textile Sector: A Major Employment Generator
The textile industry in India is not just an economic driver but also a major employment generator, providing direct jobs to over 45 million people. A significant portion of the workforce comprises women and individuals from rural areas, making the sector an important tool for economic inclusion and social development.
Moreover, about 80% of India’s textile manufacturing capacity is concentrated in micro, small, and medium enterprises (MSMEs) across the country, underscoring the sector’s decentralization and grassroots impact.
Government Initiatives Boosting the Textile Industry
The Indian government has launched several initiatives to strengthen the textile sector and enhance its competitiveness in the global market. Key programs include:
1. PM MITRA (Mega Integrated Textile Region and Apparel Parks)
The PM MITRA initiative aims to create world-class textile parks with plug-and-play infrastructure, facilitating integrated supply chains and attracting foreign direct investments (FDI) into the sector.
2. National Technical Textiles Mission (NTTM)
The government has approved the National Technical Textiles Mission (NTTM) with an investment of Rs 1,480 crore, focusing on manmade fibre (MMF) products that require extensive research and development (R&D).
Key highlights of NTTM:
- 168 research projects approved in 2024
- Focus on innovation in technical textiles
- Development of new materials for industrial applications, healthcare, and infrastructure
3. Scheme for Rebate of State and Central Taxes and Levies (RoSCTL)
The RoSCTL scheme, extended until March 31, 2026, aims to enhance export competitiveness by providing tax rebates on state and central levies, making Indian textiles more affordable in international markets.
Challenges and Future Outlook
Despite its global stature, India’s textile sector faces certain challenges:
- Intense competition from countries like China, Bangladesh, and Vietnam
- Fluctuations in raw material prices, especially cotton and synthetic fibres
- Need for further technological upgradation and automation in MSMEs
However, with strong government support, increasing FDI, and a skilled workforce, the sector is poised for robust growth. The implementation of Free Trade Agreements (FTAs) with major global markets will further enhance India’s textile exports and strengthen its global footprint.
Conclusion
India’s textile industry continues to be a cornerstone of the economy, contributing significantly to GDP, exports, and employment. With strategic government interventions, robust infrastructure development, and increasing global demand, the sector is well-positioned to climb higher in the global textile ranking. The future looks promising as India strengthens its manufacturing capabilities, innovation, and global market share.
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