India's Textile Industry on the Verge of Massive Expansion

India's textile industry is poised for significant growth, with exports projected to reach USD 65 billion by FY26. The sector is bolstered by government initiatives and a robust domestic market, with anticipated growth in various sub-sectors and increased foreign investments.

India's textile industry is poised for substantial growth, with total textile exports projected to reach USD 65 billion by FY26, according to Invest India. The agency highlighted Prime Minister Modi's '#fibretofashion' vision as a driving force behind the sector's technological advancements and global competitiveness.

In 2022, India's domestic textile market was valued at USD 165 billion, with USD 125 billion from local sales and USD 40 billion in exports. Forecasts suggest a compound annual growth rate (CAGR) of 10 per cent, propelling the market to USD 350 billion by 2030. Additionally, India has become the world's second-largest manufacturer of personal protective equipment (PPE), with a market expected to exceed USD 92.5 billion by 2025.

The textile industry is a significant employment generator, directly employing 45 million people and another 100 million in related sectors. Cotton farming alone supports an estimated 6 million farmers. Key growth drivers include advanced infrastructure, raw material availability, skilled labor, and competitive manufacturing costs. Government initiatives like the Production Linked Incentive (PLI) Scheme, with an allocation of Rs 10,683 crore, further support sector expansion. Foreign Direct Investment (FDI) remains strong, contributing USD 4.47 billion to the industry from April 2000 to March 2024.

India is one of the world's leading textile and apparel producers, contributing 2.3 per cent to the national GDP, 13 per cent to industrial production, and 12 per cent to exports. The country holds a 4 per cent share of global textile and apparel trade and is the second-largest producer of cotton, jute, and silk. Remarkably, India accounts for 95 per cent of the world's hand-woven fabric.

(With inputs from agencies.)