The Economic Survey paints a promising picture of India’s textile and apparel sector, highlighting its substantial role in the economy. India ranks as the sixth-largest exporter of textiles and apparel globally, contributing significantly to its GDP, industrial output, and employment. Over 45 million people are employed directly by the sector, with a considerable portion being women and rural workers. The dominance of Micro, Small, and Medium Enterprises (MSMEs), which make up 80% of the industry, underscores the sector’s inclusivity.
In 2023, India exported textile goods worth USD 34 billion, with apparel accounting for 42% of exports, raw and semi-finished materials for 34%, and finished non-apparel goods for 30%. The US and Europe are the largest importers of Indian textiles, accounting for 66% of apparel exports and 58% of non-apparel finished goods. Other significant destinations include the UK and the UAE.
Despite challenges, especially during the COVID-19 pandemic, the sector remained resilient. The government’s initiatives, such as the PM MITRA program for establishing world-class textile parks and the National Technical Textiles Mission (NTTM), are expected to boost innovation, attract foreign direct investment, and strengthen India’s textile supply chain. Additionally, the extension of the Scheme for Rebate of State and Central Taxes and Levies until 2026 further promotes exports. These efforts suggest a positive outlook for India’s textile sector in the coming years.
