India Fashion and Textile Industry Summary

The Indian textiles industry has significantly contributed to the economic life of the country. World trade of textiles and clothing has bolstered growth for the sector. A leading sector in the Indian economy, textiles contributes a double-digit share to industrial production and total export earnings, and in the period covered by the industry reports summarised here it was the largest foreign exchange earning sector in the country. It provides direct employment to over 35 million people, and with continuing growth momentum, the role of apparel and textiles in the Indian economy is bound to increase.

The India Advantage

Certain natural advantages and external factors have fuelled the growth of this industry with a clear competitive edge. India overtook the US to become the world's second largest cotton producing country, after China, as per a study by the International Service for the Acquisition of Agri-biotech Applications. Bt cotton was a major factor contributing to a higher rate of production, from 15.8 million bales in 2001-02 to 31 million bales in 2007-08. Reports from the period indicated that India accounted for roughly 61 per cent of the global loomage, 22 per cent of the global spindleage, 12 per cent of the world's production of textile fibres and yarn, and a 25 per cent share in the total world trade of cotton yarn.

Textiles and Apparel Trade

As reported in 2008, Indian textiles and products, handlooms and handicrafts are exported to more than 100 countries. Europe continues to be India's major export market with a 22 per cent share in textiles and 43 per cent in apparel; the US is the single largest buyer of Indian textiles and apparel with 19 per cent and 32.6 per cent shares respectively. Other significant countries in the export list include the UAE, Saudi Arabia, Canada, Bangladesh, China, Turkey and Japan.

Readymade garments (RMG) are the largest export segment, accounting for 45 per cent of total textile exports and 8.2 per cent of India's total exports, as reported in 2008. This segment benefitted significantly with the termination of the Multi-Fibre Arrangement (MFA) in January 2005. A study of the textile industry from that period predicted growth for the sector from US$ 19 billion in 2006-07 to US$ 50 billion by 2012, and readymade garment exports from India were expected to touch US$ 14.5 billion by 2009-10 with cumulative annual growth of 18 to 20 per cent, according to the Apparel Export Promotion Council.

For the industry's own organisations, see the Indian textile associations page, and for the companies themselves, the India clothing industry directory.