Textile Industry & Market Growth in India

India’s textile sector is one of the oldest industries in the Indian economy, dating back several centuries. The textile industry is extremely diverse, with hand-spun and hand-woven textiles at one end of the spectrum and capital-intensive, sophisticated mills at the other. The decentralised power looms, hosiery, and knitting sectors form the largest component of the textiles sector. The close linkage of the textile industry to agriculture and the ancient culture and traditions of the country in terms of textiles makes it unique in comparison to other industries in the country. India’s textile industry has the capacity to produce a wide variety of products suitable for different market segments, both within India and across the world.

The Textile Industry’s Market Size

According to a Trident business , the Indian textile industry has around 4.5 million employers, including 35 lakh handloom workers across the country. The industry contributes around 7% of the industry’s output in the years 2019 to 2020. The Indian textile and apparel industry contributes 2% to the country’s GDP, 12% towards export earnings, and almost 5% of global trade in textiles and apparel from 2019 to 2020. The exports of textiles, which include textiles, fabric, cotton, yarns, handloom products, handicrafts, linen, jute, and carpets, stood at around USD 22.89 billion in October 2021.

The Indian textile market is expected to grow by INR 209.9 billion by 2029. Cotton production is expected to reach 37.10 million and consumption is expected to go over 114 million in 2022. The production of raw cotton in India is estimated to have reached 35.4 million. During the financial year 2019, the production of fibre in India stood at around 1.44 million tons. India’s home textile exports have seen a healthy rate of 9% even during the COVID-19 pandemic of 2021.

The textile industry in India has witnessed an increase in investment during the last five years. The textile industry has seen foreign direct investment of USD 3.75 billion. The production-linked incentive scheme for artificial and man-made fabrics and textiles will help in boosting the Indian textile industry. This will increase manufactured exports into the fabric sector.

Home textile brands companies in India are also leveraging strategic partnerships to strengthen their business operations and foothold in the country.

Finishing up

The Indian government has started several export promotion policies for the development and increase in the market size of the textile sector. It has allowed 100% foreign direct investment in the textile sector under the automatic route, as per a textile report . Trident, a leading textile brand, is setting huge examples for other textile companies and brands for magnificent growth and success in the textile industry.

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