The textile industry has been an important part of the Indian economy through the course of history. Today, the country has become one of the largest producers of textiles globally. The Indian textile industry can produce products of a wide variety, suitable for different market segments. The industry is a diverse one, encompassing hand-woven textiles on one side and sophisticated textile mills on the other. Hosiery and knitting form the largest component of the textile sector. The country is the largest producer of jute and cotton globally, and is second when it comes to production of silk. Moreover, 95% of the world’s hand-woven fabric is produced in India. According to FDI Finance, India is the world’s second-largest producer of personal protective equipment (PPE), ahead of the manufacturing powerhorse China, with more than 600 companies recognised as manufacturers. At present, the textile industry contributes 5% of the country’s GDP and 12% of its export earnings. Between April-December 2021, textile and apparel exports were at $29.8 billion, implying a robust growth of 41% over the same period the year before, according to the government. Though exports were hit hard in 2020 due to the pandemic and the consequent lockdowns across the globe, they bounced back in soon. For FY22, the government’s target for exports of textiles and apparel was an impressive $44 billion.The Indian textile industry constitutes about 6% of the global market. It provides direct employment to 45 million people, making it the second-largest employer in the country, the first being agriculture. The sector is expected to be worth more than $209 billion by 2029. During the period April 2000-December 2021, FDI in the textile sector of India had touched $3.74 billion. The sector saw a spurt in FDI in the last five years, with Japan, Mauritius, Italy and Belgium being the highest contributors. For improving manufacturing capacity and boosting exports, the Government of India has introduced the Production-Linked Incentive (PLI) Scheme in the textile sector with an approved outlay of Rs 10,683 crores for a period of five years. The Government has had other initiatives for the sector as well, like the PM-MITRA scheme which will set up seven mega textile parks, with the total outlay being Rs. 4,445 crore.
10 May 2022
Sophia Navagaonkar
