Textiles and Apparels

The textile manufacturing sector in India is a major market that plays a crucial role in the country's GDP and job creation. One of the biggest employers in the nation, it creates job opportunities in various stages of the value chain like cotton farming, spinning, weaving, dyeing, printing, and making garments.

India hosts multiple textile manufacturing hubs situated in areas including Gujarat, Maharashtra, Tamil Nadu, Uttar Pradesh, and West Bengal. These clusters focus on specific areas of the textile industry, such as cotton textiles, silk textiles, and handloom textiles, and play a substantial role in India's textile production and exports

India ranks as the second biggest manufacturer of textiles and clothing globally.

It is also the exporter of textiles worldwide, covering apparel, home, and technical products, ranking as the sixth-largest. India holds a 4% portion of the worldwide textile and apparel trade market.

The textile and clothing sector accounts for 2.3% of the nation's GDP, 13% of industrial output, and 12% of exports.

Approximately 45 million people are working in the textile sector, with 3.5 million of them being handloom workers. In the financial year of 2022, India's exports of textiles, clothing, and handicrafts reached $44.4 billion, rising by 41% compared to the previous year.

It is anticipated that textile exports will reach a total of US$ 65 billion by the fiscal year of 2026. It is anticipated that the Indian textile and apparel sector will experience a 10% Compound Annual Growth Rate (CAGR) between 2019-20, projected to reach US$ 190 billion by 2025-26. The apparel market in India was worth US$ 40 billion in 2020 and is projected to grow to US$ 135 billion by 2025.

The amount of money in rupees. The PLI scheme worth 10,683 crore (US$ 1.44 billion) is anticipated to provide a significant uplift for the textile industry. The plan aims to encourage the production of MMF apparel, MMF fabrics, and 10 categories of technical textile products.

Strong domestic consumption and export demand provide a positive outlook for the Indian textiles industry's future. India is undertaking several key projects to enhance its technical textile sector. Due to the pandemic, there is an increasing need for technical textiles such as PPE suits and equipment. The sector is being supported by the government through financial assistance and the provision of machinery.

Leading players in the industry are ensuring sustainability in their products through the production of textiles made from natural and recyclable materials.

The retail industry in India has seen significant expansion over the last ten years due to an increase in consumerism and disposable income, with the arrival of various global brands such as Marks & Spencer, Guess, and Next. The surge in textiles will be driven by increasing household incomes, expanding populations, and growing demand from sectors like housing, hospitality, healthcare, and more.

The automotive textiles segment of the technical textiles market is expected to grow to US$ 3.7 billion by 2027, up from US$ 2.4 billion in 2020. Likewise, the industrial textiles industry is projected to grow at a compound annual growth rate (CAGR) of 8% from US$ 2 billion in 2020 to US$ 3.3 billion in 2027. It is predicted that the Indian textiles market will surpass $209 billion by 2029.

The Textiles PLI Scheme is included in the overall set of initiatives by the Indian Government to boost the textile industry. Created to inspire and compensate textile manufacturing employees in India, PLIs for Textile was introduced in 2017 by the Ministry of Textiles to encourage the production of textile goods and boost their exportation.

In addition to encouraging exports, the program also addresses various other aspects of the manufacturing process. These measures involve offering raw materials at competitive prices, enhancing skills, providing credit at competitive interest rates, giving infrastructure support, and promoting technological upgrades. The integration of these measures with the PLI Scheme will foster a favorable atmosphere for the development of India's textile industry.

To qualify for the program, companies need to show growth in their exports in the past three fiscal years. Additionally, they are required to adhere to certain safety, labor, and environmental criteria. The program provides companies with a one-time payment of up to 5% of their total export value as an incentive. All textile manufacturing units in India, including those in spinning, weaving, garments, and related activities, have the opportunity to participate based on their product quality, quantity, and timely delivery performance.

Advancements in innovation and technology are revolutionizing the textile manufacturing industry, changing how textiles are made, designed, and utilized, and shaping the industry's future.

Nevertheless, the sector encounters obstacles such as rivalry from abroad, increasing wages for workers, infrastructure deficiencies, adherence to laws, and environmental worries. To overcome these obstacles, stakeholders such as the government, industry participants, and other relevant parties must work together consistently.

There is a growing emphasis in the industry on sustainability and environmentally conscious practices. A growing number of people are becoming more conscious of using sustainable fibers, organic and natural dyes, water and energy-saving technologies, and waste reduction efforts. Several Indian textile companies are also acquiring globally accepted certifications like GOTS (Global Organic Textile Standard) to showcase their dedication to sustainability.

Corpseed assists with obtaining all necessary licenses and permits required for operating in the textiles and apparels industry. This includes factory licenses, pollution control board approvals, and other industry-specific certifications, ensuring your operations are legally compliant.