India’s textile exports to reach $65 billion by 2025-26: Invest India

NEW DELHI: According to Invest India, India’s textile industry is growing at a rapid pace. The country’s textile exports are expected to reach $65 billion by the fiscal year 2025-26.

According to a report by Invest India, the country’s textile production for both the domestic and export markets is projected to grow at a compound annual growth rate (CAGR) of 10 percent to reach USD 350 billion by 2030.

The size of the Indian textile and apparel market is estimated to be around USD 165 billion by 2022, with the domestic market accounting for USD 125 billion and exports for USD 40 billion.

“Prime Minister Modi’s bold vision of moving from fibres to fashion will ensure that the textile industry becomes a driving force in the global market while empowering local players with expertise and technology,” Invest India said in a post on social media platform X.

India has also become the world’s second largest manufacturer of personal protective equipment (PPE). The production of PPE had increased during the devastating COVID-19 epidemic, when India emerged as a major exporter to meet the needs of the global market.

With over 600 certified PPE manufacturing companies, India is well positioned in a market expected to exceed $92.5 billion by 2025, up from $52.7 billion in 2019. The textile industry is also a major employment driver, providing direct employment to 45 million individuals and another 100 million in related sectors, the report said.

India is the world’s largest producer of cotton (23 percent) and has the largest cotton cultivation area (39 percent of the world’s surface area). Cotton plays a major role in the livelihood of an estimated 6.5 million cotton farmers. As a result, there is ample raw material available for the textile industry.

There are multiple factors contributing to the industry’s growth, including India’s world-class infrastructure, a focus on technical textiles driven by demand from sectors such as automotive, healthcare and infrastructure, and the availability of raw materials and skilled labour, the report said.

The Government of India’s Production Linked Incentive (PLI) Scheme, launched with an allocation of Rs 10,683 crore, has given a boost to the country’s textile industry. The initiative aims to scale up production of man-made fibre garments and fabrics, as well as technical textiles.

Under the PLI scheme, 64 applications have been approved, with a proposed investment of Rs 19,798 crore, with an expected turnover of Rs 1,93,926 crore and expected employment of 2,45,362 persons. The policy has been successful in attracting robust FDI flows into the textile sector. Investments are planned in Madhya Pradesh, Uttar Pradesh and Rajasthan.

From April 2000 to March 2024, India attracted $4.47 billion in foreign direct investment in textiles, including dyed and printed fabrics.

India is one of the largest producers of textiles and clothing in the world, contributing about 2.3 percent to the country’s GDP, 13 percent to industrial production and 12 percent to exports.

The country has a 4 percent share of the global textile and clothing trade, giving it a significant share of the world market.