Textiles and Apparel industry

The Textiles and Apparel industry in India is a cornerstone of the nation’s economy, renowned globally for its diverse product offerings, deep-rooted traditions, and significant contribution to employment and exports. It’s a complex ecosystem, extending from the cultivation of raw materials to the creation of high-fashion garments.

Broad Product Categories

The Indian textile and apparel industry encompasses a vast range of products, broadly categorized as follows:

1. Fibers and Yarns:

• Natural Fibers: India is a leading global producer of:

• Cotton: The largest producer globally, with vast acreage under cultivation. This forms the base for a significant portion of textile products.
• Jute: The largest producer of raw jute and jute goods, used in sacking, hessian, geo-textiles, and diversified products like bags and decorative fabrics.
• Silk: India is the second-largest producer of silk globally, and uniquely, produces all five major types of silk (Mulberry, Tropical Tasar, Oak Tasar, Eri, and Muga). Products include raw silk, yarn, fabrics, made-ups, and ready-made garments.
• Wool: India is the ninth-largest wool producer, primarily for carpet-grade wool, but also apparel and coarser grades. Products include carpets, blankets, knitwear, and fabrics.
• Other natural fibers like linen, ramie, and bamboo are also produced.
• Man-Made Fibers (MMF): India is the second-largest producer of MMFs, including polyester, viscose, nylon, and acrylic. These are increasingly important for technical textiles and performance wear.

2. Fabrics and Made-ups:

• Woven Fabrics: Produced from various fibers, including cotton, silk, wool, and MMFs, for both apparel and home furnishings.
• Knitted Fabrics: Increasingly popular for comfortable apparel and sportswear.
• Processed Fabrics: Dyed, printed, and finished fabrics for diverse applications.
• Technical Textiles: High-performance fabrics designed for specific functional purposes rather than aesthetics. This rapidly growing segment includes:

• Meditech: Surgical gowns, bandages.
• Agrotech: Crop covers, nets.
• Geotech: Geotextiles for civil engineering.
• Protective Textiles: Fire-resistant clothing, bulletproof vests.
• Sportech: Sports apparel.
• Hometech: Upholstery, carpets, curtains.
• Home Textiles: Bed linen, bath linen, table linen, curtains, upholstery, carpets, and rugs.

3. Apparel (Ready-Made Garments – RMG):

• Men’s Wear: Shirts, trousers, t-shirts, jackets, ethnic wear.
• Women’s Wear: Dresses, kurtas, sarees, blouses, skirts, western wear.
• Kids’ Wear: Clothing for infants, toddlers, and children.
• Workwear and Uniforms: For various industries.
• Sportswear and Activewear: Growing segment driven by fitness trends.
• Outerwear and Accessories: Jackets, coats, scarves, stoles, socks.

4. Traditional and Handloom Products:

• India’s rich heritage is reflected in its handloom and handicraft sectors, producing unique textiles like exquisite sarees (e.g., Banarasi, Kanjeevaram), embroidered fabrics, block-printed textiles, and artisanal garments. These often fall under the MSME domain.

Market Reports and India’s Position

The Indian textile and apparel industry is a powerhouse:

• Economic Contribution: It contributes approximately 2.3% to India’s GDP, 13% to industrial production, and 12% to the country’s total exports. It is the second-largest employer in India after agriculture, providing direct employment to over 45 million people and an additional 100 million in allied sectors.
• Market Size & Growth:

• The Indian textile market size was estimated at USD 146.6 billion in 2024 and is projected to reach USD 213.5 billion by 2033, growing at a CAGR of about 3.85% (IMARC Group).
• Some reports indicate the broader Indian textile and apparel market size reached US$ 197.2 Billion in 2023 and is projected to reach US$ 592.7 Billion by 2032, exhibiting a higher CAGR of 13.01% (Research and Markets).
• The apparel market alone is projected to grow from USD 125 billion to USD 250 billion by 2030, with exports reaching USD 100 billion.
• Global Standing:

• India is the 6th largest exporter of Textiles & Apparel globally, holding approximately a 3.91% share of global trade in textiles and apparel.
• It boasts the second-largest textile manufacturing capacity worldwide, after China.
• Key Drivers: Rising disposable incomes, increasing population, evolving fashion trends, government support through schemes like PLI and PM MITRA, and a growing focus on sustainable and ethically sourced materials.

MSMEs Focus in the Indian Textiles and Apparel Industry

Micro, Small, and Medium Enterprises (MSMEs) form the backbone of India’s textile and apparel sector. Their significance cannot be overstated:

• Dominant Presence: Nearly 80% of the industry’s capacity is spread across MSME clusters throughout the country. This fragmented nature, while offering flexibility, also presents challenges.
• Employment Generation: MSMEs in this sector are massive job creators, especially in rural and semi-urban areas, and significantly empower women.
• Product Specialization: Many MSMEs specialize in traditional crafts, handlooms, and niche product categories, preserving India’s rich textile heritage.
• Contribution to Sales: Apparel dominates MSME textile sales, accounting for a significant 78.5%, while fabrics and home textiles hold smaller shares.
• Challenges Faced by MSMEs:

• Fragmented Nature: Limits economies of scale and efficiency.
• Logistical Hurdles: High delivery costs and delays are significant challenges.
• Technology Adoption: Many MSMEs struggle to upgrade to modern machinery and adopt advanced technologies due to capital constraints.
• Competition: Intense competition from larger players and international markets.
• Sustainability Pressures: Global brands and consumers are increasingly demanding sustainable practices, posing a challenge for MSMEs to adapt to stricter environmental norms.
• Access to Finance: Difficulty in accessing adequate credit and funding for expansion and modernization.
• Reliance on Cotton: While India is strong in cotton, the global shift towards man-made fibers requires MSMEs to diversify.

Government Initiatives for MSMEs in the Textile Sector:

The Indian government recognizes the crucial role of MSMEs and has implemented several schemes to support their growth and competitiveness:

1. Amended Technology Upgradation Fund Scheme (ATUFS): Aims to modernize the textile industry by encouraging the adoption of advanced machinery through capital subsidies (10-15%) for equipment upgrades.
2. Scheme for Integrated Textile Parks (SITP): Facilitates the creation of world-class infrastructure facilities and common utilities (like ETPs, warehouses) for textile units in a cluster-based approach, providing grant assistance for park development.
3. PowerTex India Scheme: Specifically empowers the power loom sector by offering subsidies for loom upgrades and incentives for solar energy installations.
4. National Technical Textiles Mission (NTTM): Promotes high-value technical textiles through grants for R&D, pilot plants, and testing support, encouraging innovation among MSMEs in this emerging segment.
5. Production Linked Incentive (PLI) Scheme for Textiles: Incentivizes the production of MMF fabric, garments, and technical textiles through investment support, aiming to create global players and generate employment. (While broad, it benefits eligible MSMEs).
6. PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks: Aims to create integrated textile value chains with world-class infrastructure, which will also benefit MSMEs within these parks by providing access to shared facilities and a skilled workforce.
7. Rebate of State and Central Taxes and Levies (RoSCTL): Boosts textile exports by reimbursing embedded state and central taxes, making Indian garments more competitive internationally.
8. Scheme for Capacity Building in Textile Sector (SAMARTH): Focuses on addressing the skilled manpower requirement across the textile sector, aligning with the “Skill India” initiative.

Enhanced Credit Limits and Guarantees: Government initiatives to increase credit availability and guarantee cover for micro and small enterprises, directly benefiting textile MSME units in weaving, knitting, processing, and apparel sectors.