The Make in India initiative, launched in 2014, has played a crucial role in positioning India as a global textile manufacturing and export hub.
The textile and apparel industry is one of the largest contributors to India’s economy, providing employment to millions and generating substantial foreign exchange earnings. With strong policy support, infrastructure development, and a skilled workforce, India has emerged as a preferred investment destination in the global textile sector.
Overview of India’s Textile Industry
The textile and apparel industry contributes 2.3% to our GDP, 13% to industrial production, and 12% to exports. India exported textile items worth US$ 34.4 billion in 2023-24, with apparel constituting 42% of the export basket, followed by raw materials/semi-finished materials at 34% and finished non-apparel goods at 30%. It is also the second largest employment generators, after agriculture, with over 45 million people employed directly, including many women and the rural population. As further evidence of the inclusive nature of this industry, nearly 80% of its capacity is spread across Micro, Small and Medium Enterprises (MSME) clusters in the country.
The sector also has perfect alignment with the Government’s overall objectives of Make in India, Skill India, Women’s Empowerment, Rural Youth Employment and inclusive growth. The industry produces about 22,000 million pieces of garments per year, with the market size projected to reach US$ 350 billion by 2030, from the current $174 billion.
Recently, the Ministry of Textiles reported a 7% increase in textile and apparel exports, including handicrafts, from April to December 2024, compared to the same period the previous year. In line with the growth roadmap, the Indian textile market currently ranks fifth globally, and the government is actively working to accelerate this growth to a rate of 15-20% over the next five years.
Impact of ‘Make in India’ on the Textile Industry
The Make in India initiative has catalyzed textile manufacturing and exports through key policy interventions, enhanced infrastructure, and incentives. In the Union Budget 2024-25, to promote domestic textile production, two more types of shuttle-less looms are added to fully exempted textile machinery by the government. The government has introduced multiple schemes to enhance textile production, boost investments, and promote exports, including:
- Production Linked Incentive (PLI) Scheme for Textiles
- PM MITRA (Mega Integrated Textile Region and Apparel) Parks
- Amended Technology Upgradation Fund Scheme (ATUFS)
- Samarth (Scheme for Capacity Building in Textile Sector)
- Textile Cluster Development Scheme (TCDS)
- National Technical Textiles Mission (NTTM)
Union Budget Allocations for Ministry of Textiles
The Union Budget announced an outlay of ₹5272 crores for the Ministry of Textiles for 2025-26. This is an increase of 19% over budget estimates of 2024-25 (Rs. 4417.03 crore).
Export Growth and Market Expansion
India is the 6th largest exporter of Textiles & Apparel in the world. The share of textile and apparel (T&A) including handicrafts in India’s total exports stands at a significant 8.21% in 2023-24. India has a share of 3.91% of the global trade in textiles and apparel. Major textile and apparel export destinations for India are USA and EU and with around 47% share in total textile and apparel exports. The textile and apparel sector has witnessed significant export growth due to government incentives and trade agreements.
Innovation in Textile Sector
As far as innovation in textiles sector is concerned, Ministry of Textiles has conducted an Innovation Challenges in collaboration with Startup India & DPIIT. In this challenge, 9 winners were recognised and awarded, while incubation opportunities were presented to 6 awardees under the Atal Innovation Mission (AIM). Apart from this, 3 separate innovations challenges were conducted by nature fibre boards on their respective problem statements i.e.
- NJB Technological Innovation Grand Challenge in which 3 winners were recognised and awarded out of 125 applicants.
- CSB Start-up Grand Challenge in which 4 winners were recognised and awarded out of 58 applicants.
- CWDB Wool Innovation Challenge in which 3 winners were recognised and awarded out of 24 applicants.
- 17 of the total above-mentioned winners are directly engaging in activities such as textile waste recycling, biobased fibres or sustainable garment production.
Cotton Industry in India
Cotton is a vital commercial crop in India, contributing about 24% to global cotton production and sustaining the livelihoods of millions of farmers and workers. It plays a crucial role in India’s foreign exchange earnings through exports of raw cotton, intermediate products, and finished goods. India holds the largest cotton acreage in the world.
- Acreage and Yield: India has the largest cotton acreage globally; ranks 36th in productivity.
- Production and Consumption: India is the 2nd largest producer and consumer of cotton in the world.
- Cotton Species: India grows all four species of cotton: G. Arboreum, G. Herbaceum (Asian cotton), G. Barbadense (Egyptian cotton) and G. Hirsutum (American Upland cotton).
- Major Growing Zones: Cotton is primarily grown in the Northern, Central, and Southern zones of India.
Silk Industry in India
Silk is an insect fibre known for its lustre, drape, and strength. It is called the “Queen of Textiles” worldwide. India has a long history with silk and is the second largest producer and the largest consumer of silk in the world. India is unique in producing all four commercial varieties of silk: Mulberry, Tropical & Oak Tasar, Muga, and Eri. The Indian sericulture industry is important because it provides a lot of employment, requires low capital, and gives good income to silk growers. India produced 38,913 MT of silk, making it the second largest producer globally, after China.
Jute Industry in India
The jute industry is a major player in India’s economy, particularly in the eastern regions like West Bengal. It’s a vital source of employment, providing livelihoods for workers in organized mills and diversified units, and supporting numerous farm families. The Indian government actively supports the jute sector through various initiatives aimed at improving productivity, ensuring fair prices for farmers, and promoting the use of jute products.
The Make in India initiative has significantly enhanced India’s position in global textile manufacturing and exports through targeted policies, infrastructure development, and investment promotion. With sustained efforts, India is poised to become a global textile leader, driving economic growth and employment generation.