Nina Jobst
Research expert covering South Korea
Textile industry in India - statistics & facts
The Indian textile industry dates to ancient times and has seamlessly blended centuries of craftsmanship with modern manufacturing to remain a cornerstone of the nation's economic and cultural identity. The industry has changed tremendously, having transitioned from the handloom of pre-colonial India to the huge modern machinery that exists today. The textile industry was valued at over 160 billion U.S. dollars and contributes about two percent of the country’s GDP. Besides, the export of Indian textiles contributed to setting up global trade systems. Moreover, India is the second largest producer of textiles in the world after China.
Additionally, the industry offers enormous employment opportunities for skilled and unskilled workers. It is one of the main sources of livelihood for women in rural India. The states of Gujarat, Maharashtra, and Tamil Nadu were leading in textile production in India. The production of fibers, spinning yarn, weaving fabric, dyeing, and printing textiles, as well as cloth production, are all part of the country's vast textile sector. Furthermore, the industry generates an array of products for both domestic and international markets.
Traditional textiles encompass both handloom and machine-made textiles made of cotton, jute, silk, and wool. It comes as no surprise, that India produces the most cotton accounting for 23 percent of global production, with about 39 percent of land area under cultivation.
The United States and the European Union were among the major textile export destinations. However, due to the rise in inflation, consumers in the United States and Europe, and other markets have reduced apparel purchases. Resulting in a contraction in demand, the export of textiles and apparel decreased by 4.2 percent in the financial year 2024.
Despite the decline in exports, the Indian textile industry is poised for significant growth driven by government initiatives, technological advancements, and sustainability.
Additionally, the industry offers enormous employment opportunities for skilled and unskilled workers. It is one of the main sources of livelihood for women in rural India. The states of Gujarat, Maharashtra, and Tamil Nadu were leading in textile production in India. The production of fibers, spinning yarn, weaving fabric, dyeing, and printing textiles, as well as cloth production, are all part of the country's vast textile sector. Furthermore, the industry generates an array of products for both domestic and international markets.
Diversity of Indian textiles
The country has a long history of producing high-quality textiles in both contemporary and traditional designs. The uniqueness of this industry lies in its rich cultural heritage evident in the many types of textiles produced across different regions of India. It is also heavily reliant on the agriculture industry for raw materials such as cotton, silk, etc.Traditional textiles encompass both handloom and machine-made textiles made of cotton, jute, silk, and wool. It comes as no surprise, that India produces the most cotton accounting for 23 percent of global production, with about 39 percent of land area under cultivation.
Decline of textile exports
India exports textiles and apparel to more than 100 nations worldwide. It is the third-largest exporter of textiles globally. Ready-made garments were the most exported product, followed by cotton textiles and man-made textiles in the financial year 2024. During the same year, textile exports peaked in value worth over 30 billion U.S. dollars. However, a decline in the trend of textile export has been observed over the past few years due to geopolitical reasons.The United States and the European Union were among the major textile export destinations. However, due to the rise in inflation, consumers in the United States and Europe, and other markets have reduced apparel purchases. Resulting in a contraction in demand, the export of textiles and apparel decreased by 4.2 percent in the financial year 2024.
Despite the decline in exports, the Indian textile industry is poised for significant growth driven by government initiatives, technological advancements, and sustainability.
