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Textile Manufacturing Industry in India

17 Apr 2023

The textile manufacturing industry is a vital sector of the Indian economy, with a rich history dating back centuries. India has been known for its textiles and is one of the largest textile producers and exporters in the world. The Indian textile manufacturing industry is diverse, encompassing a wide range of textiles, including apparel, home textiles, technical textiles, and traditional handloom textiles.

The Indian textile manufacturing industry is a significant market, contributing to India’s GDP and employment. It is one of the largest employers in the country, generating jobs across the entire value chain, from cotton farming and spinning to weaving, dyeing, printing, and garment manufacturing.

India has several textile manufacturing clusters, concentrated in regions like Gujarat, Maharashtra, Tamil Nadu, Uttar Pradesh, and West Bengal. These clusters specialize in different segments of the textile industry, such as cotton textiles, silk textiles, and handloom textiles, and contribute significantly to India’s textile production and exports.

Let us look at some important data on the sector:

India is the world’s second-largest producer of textiles and garments. 
It is also the sixth-largest exporter of textiles spanning apparel, home and technical products. India has a 4% share of the global trade in textiles and apparel. 
The textiles and apparel industry contribute 2.3% to the country’s GDP, 13% to industrial production and 12% to exports.
The textile industry has around 45 million of workers employed in the sector, including 3.5 million handloom workers. India’s textile and apparel exports (including handicrafts) stood at US$ 44.4 billion in FY22, a 41% increase YoY.
Total textile exports are expected to reach US$ 65 billion by FY26. The Indian textile and apparel industry is expected to grow at 10% CAGR from 2019-20 to reach US$ 190 billion by 2025-26. The Indian apparel market stood at USS 40 billion in 2020 and is expected to reach US$ 135 billion by 2025.
The Rs. 10,683 crore (US$ 1.44 billion) PLI scheme is expected to be a major boost for the textile manufacturers. The scheme proposes to incentivise MMF (man-made fibre) apparel, MMF fabrics and 10 segments of technical textiles products.

Innovations in Textiles

Innovation and technology play a crucial role in the textile manufacturing industry, driving advancements in production processes, materials, product design, sustainability, and efficiency.

We are also seeing the emergence of smart textiles, also known as e-textiles or technical textiles, are textiles embedded with sensors, electronics, and other smart components that can sense and respond to external stimuli. Smart textiles have diverse applications, ranging from sports and fitness wear to medical textiles, automotive textiles, and military textiles. They are driving innovation in areas such as wearable technology, smart monitoring, and connected textiles.

Nanotechnology is also being used in textile manufacturing to enhance properties such as durability, water repellence, UV protection, and antimicrobial properties of textiles. Nanotechnology-enabled textiles are finding applications in areas such as outdoor apparel, protective clothing, and medical textiles, offering improved performance and functionality.

PLI Scheme for Textile

The PLI Scheme for Textiles is a part of the comprehensive package of measures by the Government of India to promote the textile sector. Designed to motivate and reward the employees of textile manufacturing in India, PLIs for Textile was launched in 2017 by the Ministry of Textiles to incentivise the manufacturing of textile products in India and to promote their exports.  

Other than incentivising exports, the programme covers several additional aspects of the manufacturing process. These measures include providing raw materials at competitive prices, skill development, providing credit at competitive interest rates, providing infrastructure support and encouraging technological upgradation. All these measures, when combined with the PLI Scheme, will help create an environment conducive to the growth of the textiles sector in India.

To be eligible for the programme, companies must demonstrate an increase in their exports over the preceding three financial years. Further, they must also meet some criteria related to safety, labour standards, and environmental regulations. The programme offers incentives to companies in the form of a one-time payment of up to 5% of the total value of their exports. Based on the performance in terms of quality, quantity, and timely delivery of the products, it is open to all textile manufacturing units in India, including those engaging in spinning, weaving, garmenting, and other related activities. 

The Future of Indian Textile Industries

Innovation and technology are driving significant advancements in the textile manufacturing industry and transforming the way textiles are produced, designed, and used, and are shaping the future of the textile manufacturing industry. 

The industry, however, faces challenges, including competition from other countries, rising labor costs, infrastructure gaps, compliance with regulations, and environmental concerns. Addressing these challenges requires sustained efforts from stakeholders, including the government, industry players, and other relevant entities.

The industry is increasingly focusing on sustainability and eco-friendly practices. There is a growing awareness and adoption of sustainable fibers, organic and natural dyes, water and energy-saving technologies, and waste reduction initiatives. Many Indian textile companies are also obtaining internationally recognised certifications such as GOTS (Global Organic Textile Standard) and OEKO-TEX® to demonstrate their commitment to sustainability.

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