Prospects for the textile and clothing industry in India

ABSTRACT

India ranks as the world’s second largest producer of textiles and clothing after China, and is the sixth largest exporter of textiles and clothing in international markets. Its textile and clothing industry is long established, extensive and wide ranging, and the industry fulfils a vital role in India’s economy—not least in terms of employment opportunities and export earnings. Moreover, it remains one of the country’s most important industrial sectors, even though the Indian economy is expanding rapidly and shifting impressively towards high-tech manufacturing and service sectors. In fact, the textile and clothing industry continues to represent India’s largest manufacturing activity, and in 2021/22 it accounted for about 7% of the country’s industrial production, 2% of its gross domestic product (GDP) and 10% of its national export earnings. Also, the industry provides direct employment for around 45 mn people, many of them females. In addition, an estimated 100 mn people are employed in indirect activities—notably in the agricultural sector. The importance of the textile and clothing industry to India’s economy is recognised by the Indian government in its provision of substantial assistance and support. The textile and clothing industry also benefits from India’s huge domestic market, reflecting the fact that the country has a population of 1.39 bn people. Furthermore, this market is growing. Admittedly, the value of the market fell in 2020/21 alone, from US$106 bn to US$75 bn, reflecting the impact of the COVID-19 pandemic. But by 2025/26 it is forecast to increase to US$190 bn, in line with growing prosperity and a continuously growing population. © Textiles Intelligence Limited 2022.