India's Textiles and Apparel industry holds a significant global position, contributing 2.3% to GDP and 7% to domestic industry value. It's a major player in cotton, jute, silk, and hand-woven fabric. The technical textiles sector is worth USD 16 billion, about 6% of the global market. Employing around 45 million directly and 100 million including related industries, it's India's second-largest job provider. India is the world's second-largest manufacturer of Personal Protective Equipment (PPE), with over 600 certified companies. The global PPE market is set to exceed USD 92.5 billion by 2025. The Indian textile industry is projected to reach USD 250 billion by 2025. Notably, cotton exports contribute USD 17.2 billion, holding a 39% share and displaying remarkable growth rates of 54% and 67% in recent years. Overall, the sector balances historical strengths with significant growth potential.
Market Insight
India ranks fifth globally in technical textiles production, valued at nearly USD 22 billion. The goal is to reach USD 300 billion by 2047. The diverse textiles and apparel industry covers handloom, handicrafts, wool, silk, and more. Readymade garment exports are expected to grow at a 12-13% CAGR, surpassing USD 30 billion by 2027. Notably, FY 2021-22 saw record textile exports, exceeding USD 44 billion with significant growth from previous years. The industry's valuation reached USD 152 billion in 2021, set to hit USD 250 billion by 2025, with cotton's crucial role in livelihoods highlighted. Key sectors include apparel, technical textiles, and home furnishings. Exports are led by the USA, EU, Bangladesh, and UAE. Minister Piyush Goyal aims for USD 100 billion textile exports by 2030, supported by a USD 1.44 billion incentive scheme for registered textile manufacturers.
Recent Industry Trends
The Indian textile industry showcases a diverse landscape with branded garments offered through exclusive brand stores and multi-brand outlets. Technical textiles drive innovation, spanning medical, and protective textiles. Investment opportunities extend to man-made fibres, textile machinery, and advanced fields like 3D printed clothing. Non-woven fabrics are revolutionized, while domestic markets grow globally. Environmental consciousness drives sustainable practices, creating textiles from unconventional materials like coffee grounds and algae, contributing to greener approaches.
Growth Drivers
India's textile industry is backed by top-notch infrastructure and a diverse production focus. It's shifting towards technical textiles, utilizing rich raw materials and a skilled workforce across the value chain. The country leverages integrated value chains and a growing domestic market while benefiting from competitive manufacturing costs and a modern retail landscape. Rising disposable incomes and brand preferences, along with supportive policies and increased investments, are driving growth. With the capacity to draw substantial foreign funds, India's textile industry is set for expansion.
Growth Strategies
- Textile Parks: India's textile park initiative has gained momentum, with 59 projects sanctioned since 2014. These include operational parks and a plan for seven MITRA parks under a budget scheme.
- Apparel Manufacturing Incubation: Supporting apparel start-ups with workspace and funding has been implemented across Madhya Pradesh, Odisha, and Haryana.
- Technical Textiles Growth: India anticipates a rise in technical textiles, with automotive and industrial textiles set to grow by 2027.
- Public Private Partnership (PPP): PPP efforts are fostering industry growth, seen in partnerships like Flipkart's collaboration with Himachal Pradesh artisans.
- Khadi Promotion: Khadi is gaining momentum, showcased in events like the 'Khadi Fashion Show' and the launch of the CoEK for innovative fabrics.
- Diversification: Industry players are diversifying, such as Raymond's expansion in male grooming and Aditya Birla's partnership with Flipkart.
- Research & Development: R&D drives progress, evident in investments in textile R&D, silk industry projects, and DRDO's contributions to military textiles.
- Domestic Market Focus: India is investing in domestic growth, exemplified by Tamil Nadu's Textile City plan and 75 textile hubs initiative.
- Backward Integration: Focus on backward integration includes training centres for leather artisans and skill training agreements across the value chain.
- Forward Integration: Forward integration efforts are seen in ventures like Asahi Songwon Colours’ joint venture for pigments and Flipkart's stake in Arvind Youth Brands.
- Organic Cotton Expansion: Initiatives are in place to boost organic cotton production, like Tamil Nadu's Sustainable Cotton Cultivation Mission and Inditex's farmer partnership.
- Sustainable Textiles: Sustainable approaches include joint ventures to reduce textile waste, the SusTex initiative for artisan livelihoods, and companies adopting eco-friendly practices.
Why Invest in India?
The Indian textile industry is poised for substantial growth driven by robust demand across segments, including technical textiles and readymade garments. Cotton production and exports are expected to surge, and policy support, such as foreign investment schemes and budget allocations, underpins the sector's advancement. India's competitive edge stems from abundant raw materials, a skilled workforce, and cost-effective production techniques, setting it apart in the global textile market. Minister Piyush Goyal's strategic framework of the 5 F's highlights the nation's potential to become a significant global textile brand.
Textile SEZs in India
- Mahindra World City SEZ, Tamil Nadu
- Brandix India Apparel City (BIAC), Andhra Pradesh
- Surat Apparel Park, Gujarat
- Mangalore SEZ, Karnataka
- Coimbatore Hi-Tech Infrastructure (CHIL) SEZ, Tamil Nadu
- Ludhiana Textile & Garments SEZ, Punjab
- Noida Apparel Export Cluster (NAEC), Uttar Pradesh
- Tirupur Export Knitwear Industrial Complex (TEKIC), Tamil Nadu
- Indore SEZ, Madhya Pradesh
- Jaipur Textile City, Rajasthan
Key Textiles and Apparel Zones in India
- Tirupur, Tamil Nadu: Knitwear Hub
- Surat, Gujarat: Synthetic Fabrics Centre
- Ahmedabad, Gujarat: Cotton and Denim Hub
- Mumbai, Maharashtra: Fashion and Garment Industry
- Kolkata, West Bengal: Jute and Traditional Textiles
- Kanpur, Uttar Pradesh: Leather and Leather Goods
Government Policies and Incentives
- Amended Technology Upgradation Fund Scheme (A-TUFS)
- National Textile Policy of 2000
- SAATHI Scheme
- Merchandise Exports from India Scheme
- Scheme for Capacity Building in Textile Sector (SCBTS)
- PLI Scheme
- Mega Integrated Textile Region and Apparel (MITRA) Parks Scheme
- Government E-Marketplace
- Weavers MUDRA Scheme
Foreign Direct Investment
India's textile and apparel industry has warmly embraced foreign direct investment (FDI), with cumulative inflows reaching USD 4.2 billion from 2000 to 2023. Notably, global industry leaders like Hugo Boss, Diesel, and Youngone have entered the Indian market, highlighting their confidence in its potential. The strategic partnership of Youngone, a major Korean textile player, with the Kakatiya Mega Textile Park showcases this trend and is expected to generate significant local employment. The industry's openness to foreign investment and collaboration signals a commitment to globalization, technology transfer, skill enhancement, and overall growth in the Indian textile and apparel sector.
Opportunities in India
The Indian textile sector anticipates remarkable growth, projected to reach USD 190 billion by FY26, driven by robust domestic consumption and ambitious export targets. Noteworthy developments include the vibrant silk industry, successful bilateral collaborations, proposed FDI expansion, and allocations in the Union Budget 2023-24, with substantial focus on the Amended Technology Upgradation Fund Scheme (ATUFS) and National Technical Textiles Mission. Efforts to enhance expertise through Centers of Excellence (CoEs) and a strong thrust on foreign investment underline India's commitment to becoming a comprehensive sourcing hub, with potential to attract investments from ASEAN nations and beyond, fostering economic growth and employment opportunities.
Key Players in the Industry
- Reliance Industries Ltd.
- Aditya Birla Fashion and Retail Limited
- Arvind Limited
- Raymond Limited
- Fabindia
- Bombay Dyeing
- Lifestyle International
- Arvind Fashions Limited
- Shoppers Stop
- TATA Group
- Future Group
Conclusion
In conclusion, India's textile and apparel industry stands as a dynamic force that blends tradition and innovation, playing a pivotal role in the nation's economy and cultural heritage. Fuelled by diverse resources, skilled labour, and policy support, it experiences robust growth, aided by collaborations, foreign investment, and sustainable practices. The sector's continuous evolution and commitment to quality position it for a promising future, contributing to economic growth while honouring its rich heritage.
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