Textile industry in India growing at 15.3% until 2023

It is predicted that India will export USD 95.5 billion worth of textiles. Growing at a CAGR of 15.3%, the total exports will reach USD 145.6 billion by 2023.

  • Definition / Scope
  • Market Overview
  • Market Risks
  • Top Market Opportunities
  • Market Drivers
  • Industry Challenges
  • Technology Trends
  • Pricing Trends
  • Regulatory Trends
  • Other Key Market Trends
  • Market Size and Forecast
  • Market Outlook
  • Distribution Chain Analysis
  • Key Market Players
  • Strategic Conclusion

Definition / Scope

Types of textiles based on raw material sourcing

  • Animal Textile: Animal textiles are made from hair, fur, or skin of an animal.
    • Wool refers to the hair of the domestic goat or sheep.
    • Woollen refers to a bulkier yarn produced from carded, non-parallel fiber, while worsted refers to a finer yarn spun from longer fibers which have been combed to be parallel.
    • Silk is an animal textile made from the fibers of the cocoon of the Chinese silkworm which is spun into a smooth fabric prized for its softness.
    • Mulberry silk and Tussah silk are two major types of silk while Mulberry silk is produced in India. Silkworm larvae produce the first type if cultivated in habitats with fresh mulberry leaves for consumption, while Tussah silk is produced by silkworms feeding purely on oak leaves.
  • Plant Textile: Plant textile is made from grass, rush, hemp, and sisal or a combination of these raw materials.
    • Coir coconut fiber is used in making twine, floormats, doormats, brushes, mattresses, floor tiles, and sacking. Fibres from pulpwood trees, cotton, rice, hemp, and nettle are used in making paper. Cotton, flax, jute, hemp, modal and even bamboo fiber are all used in clothing.
    • Jute is a fiber having an agro-renewable, bio-degradable, and carbon positive composition
  • Mineral Textiles: Asbestos and basalt fiber are used for vinyl tiles, sheeting, and adhesives, acoustical ceilings, stage curtains, and fire blankets.
    • Glass fiber is used in the production of spacesuits, ironing board and mattress covers, ropes and cables, reinforcement fibre for composite materials, insect netting, flame-retardant and protective fabric, soundproof, fireproof, and insulating fibres.
    • Metal fiber, metal foil, and metal wire have a variety of uses, including the production of cloth-of-gold and jewelry.
  • Synthetic Textiles: Synthetic textiles are used primarily in the production of clothing.
    • Polyester fiber is used in all types of clothing, either alone or blended with fibers such as cotton.
    • Acrylic is a fiber used to imitate wools, including cashmere, and is often used in replacement of them.
    • Nylon is a fiber used to imitate silk; it is used in the production of pantyhose.
    • Spandex trade name Lycra is a polyurethane product that can be made tight-fitting without impeding movement. It is used to make activewear, bras, and swimsuits. Olefin fiber is a fiber used in activewear, linings, and warm clothing.

Well-known textile varieties are:

  1. Cotton Textile
  2. Man-Made Textile
  3. Woollen Textile
  4. Silk
  5. Jute

Application of Textile

The most common application of textile is making apparel, bags, and other clothing accessories. Examples cover a wide range of application such as carpeting, towels, coverings, bedsheets, backpacks, tents, nets, handkerchiefs.

The textile is used in sports activities as the making of a parachute, or even in as making of a national flag. Textiles used for industrial use are referred to as technical textiles having its peculiar features.

Technical textiles are functional fabrics having applications across various industries including automobiles, civil engineering, agriculture, healthcare, and industrial safety, etc.

Market Overview

The Indian textile industry operates in both organized high scale and fragmented low scale structure. At one end of the spectrum, the traditional handspun located mostly in rural areas operates and on the other is the largely urban-based capital – intensive sector.

Besides these two spectra, there is also a growing intermediate segment consisting of decentralized small scale power loom units dispersed mostly in rural and semi-urban areas all over the country.

India is the second-largest country in terms of enjoying yarn-spinning capacity in the world after China, accounting for roughly 20 percent of the world’s spindle capacity.

India is also the third largest producer of cotton, accounting for 15 percent of the global cotton crop. Likewise, India has the largest number of looms in place to weave fabrics, representing 64 percent of the world’s installed looms.

Of which, 98 percent of the looms are held by powerloom and handloom sectors. Composite mills account for 2 percent of India’s installed looms and 4 percent of India’s fabric output. India has a total of 2.37 million handlooms occupied by 4.33 million weavers.

The Indian textile and apparel industry contributes about 7% to industry output in value terms and approximately 4% to the country’s GDP. Further, the industry contributes 14% to the manufacturing and 13% to the export earnings of the country.

The industry is the second largest employer after agriculture, employing over 45 million people directly and over 65 million people indirectly. The industry accounts for nearly 15 percent of total exports.

Currently, India is the third largest exporter of textiles and apparels with about 4.6% market share.

India is behind only China and the European Union. China accounts for 35.15% global share, while Vietnam holds 4.11% and Bangladesh enjoys 4.07% global textile share leading the Textile and Apparel exports as major manufacturing activities are concentrated in these regions.

Home textile and furnishing sector comprise a major part of the overall textile industry. It includes terry towels, bed sheets, top of beds, curtains, pillow cases, rugs, carpets, etc. Bed and bath linen together constitute about 67% of the home textile industry.

Man-Made Fibres (MMF)

The domestic MMF industry mainly comprises two components i.e., polyester and viscose, which together accounts for about 94% (in volume terms) of the total textile.

Under this, polyester accounts for about 77.5%. MMF is primarily used to produce 100% non-cotton fabrics and blended fabrics, which are in turn used in readymade garments, home textiles, and other industrial textiles.

In 2018, the domestic MMF industry in volume terms stood at 2,506 million kilograms. The domestic consumption held 69.3% of the total output.

India is the second largest producer of Manmade Fibre (MMF) and Filaments globally after China, with the production of around 2,506 million kilograms in 2018.

India has been retaining the position of the fifth largest market for textile and apparel products in the world since 2016, preceded only by developed nations like the USA and countries in the European Union.

Indian readymade garments/apparels (RMG) industry is the largest segment of the textile Industry accounting for approximately 50% share.

In 2018, 39% of the total exported textile was garments. Likewise, Cotton yarn and fabrics accounted for 23% of the total exported textile. Furthermore, Man Made textile held 14% export share and handloom and handicraft constituted 11% of the export share.

The US is the largest importer of Indian textile. It imported USD 3.8 billion worth of Indian textile accounting for 17% of total textile export from Indian in 2018. EU is the second largest market for Indian textile slightly lagging behind the USA.

India exported USD 3.3 billion worth of textile making up 15% of the export share to the EU. Bangladesh and China are the other two key exporting markets which makes up a combined 16% export share.

Market Risks

  • Rising Input Cost

Labor cost in Indian textile industry is on the verge of rising since 2018. The wage rate started soaring when the government ordered garment factories to hike their laborers’ monthly average wage from USD 67 to USD 97 in 2018. Moreover, under the Minimum Wages Act, which was introduced in 1948, state governments are required to increase the basic minimum wage every five years.

  • Labour Availability

Unlike textile factories in other countries, textile factories in India are not fully automated and remain labor-intensive. The industry caters 21% of total employment. But, the availability of the low-skilled and medium-skilled human resource is shrinking in this sector since 2017.

  • Trade Barriers

Indian textile manufacturers are facing higher trade barriers, compared to other competing countries like Bangladesh, Vietnam, and Pakistan, in the US and EU. The average tariff imposed on textile products exported by Indian manufacturers in the EU and US is 5.9 percent and 6.2 percent respectively.

In comparison, the Export tariff on textile products shipped from Pakistan faces zero percent and 5.3 percent in the EU and US, respectively. Similarly, for Bangladesh, the rate is zero percent and 3.9 percent respectively.

Top Market Opportunities

India has a population of 1.5 billion people, denoting a huge domestic market that offers significant growth opportunities in domestic textiles and apparel consumption.

Demand for nonwoven textiles has been growing with burgeoning domestic attraction. The import facilitation has created opportunities to import machinery and technology at preferential tariffs and enter into FDI with foreign firms.

Demand for branded and quality home textiles has dramatically increased recently with increasing consciousness among the Indian population.

Growth opportunities exist for the introduction of quality branded products into this growing market.

India supplies 8 percent of the global demand for denim fabric. Per-capita denim consumption in India is estimated at 0.1 meters, about one-fifth of the global average. Domestic demand is expected to surge with the significant growth in the Indian economy and increased consumer spending on clothing.

Market Drivers

  • Government regulation

Huge investments of USD 184.98 are being made by Government under Scheme for Integrated Textile Parks (SITP) and amount of USD 216.25 million under Technology Upgradation Fund Scheme (TUFS) to encourage more private equity and to produce skilled workforce.

100 percent FDI (automatic route) is allowed in the Indian textile sector. Under Union Budget 2018-19, the government has allocated USD 4.63 million for the Scheme for Integrated Textile Parks, under which there are 47 ongoing projects.

Free trade with ASEAN countries and proposed agreement with the European Union will boost exports.

  • Cost of Production

There is abundant availability of raw materials such as cotton, wool, silk and jute in India. India enjoys a comparative advantage in terms of skilled manpower and in cost of production relative to major textile producers.

  • Increasing consumer prosperity

The per capita income in India has risen to USD 151.58 per month (exchange: USD 1= INR 69.52) or USD 1,818.96 per year in 2019 from USD 197.82 per month (exchange USD 1= INR 54.96) or USD 2,373.89 per year. The growing income of people in the country has reflected in the increase in buying behavior. Nowadays people are becoming more fashion conscious and are spending more on clothing.

  • Increasing Penetration of Organized Retail

India has become a very attractive and large market for international brands owing to the above- mentioned features. Many top international fashion brands such as H&M, Zara, and Aeropostale, etc. have entered the Indian market in recent years. The presence of top brands in the country will lead to higher consumption of fashion apparel.

  • Abundance of raw material

Cotton Availability India is the largest producer of cotton as well as a net exporter of cotton and cotton yarn. The country has the distinction of having the world’s largest area under cotton cultivation. Its closest competitor in terms of production – China, is a net importer of cotton (refer table).

The continuous availability of cotton in India gives an edge to the domestic home textiles players in form of quick raw material supply and lower cotton prices. In 2018, 26.7 million metric tonnes of cotton were produced globally. India’s share of global cotton production represents 23.22%.

  • Competitive Costs

India provides a cost-effective model of manufacturing for textile players. As compared to the key competing countries, India has one of the lowest labor costs at USD 160-180 per month, power cost of USD 0.10-0.12 per KWH and water cost at US cents 16-20 per meter cube.

The higher finance cost, compared to competing countries, is partially mitigated through various government policies. Thus, Indian manufacturers get a competitive edge in terms of cost over other countries manufacturing home textiles.

  • Shifting Lifestyle

The shifting Women’s lifestyle shifting from home oriented to career-oriented driven by pressures of urban living, roles that Indian women have to play are getting redefined. Along with household activities, women have started contributing to household income as well. India could boost its growth by 1.5 percentage points to 9% per year if around 50% of women join the workforce.

Currently, the rate of women’s participation in the workforce stands at 27% in India. The number of working women in the urban area is expected to get doubled from 30 million in 2016 to 60 million in 2025. The increasing number of women in the workforce will boost the demand for women’s work-wear segment.

Industry Challenges

Higher input costs compared to competing nations

India has one of the highest costs of capital compared to most competing countries which affect the cost of production and thus its competitiveness.

The present lending rate in India stands at 11.0-12.5% while that in other competing countries like China and Vietnam. ranges from 5-7%. Also, the power cost in India is much higher compared to competing nations.

Absence of fiber neutrality

Globally, manmade textiles and garments are in high demand. But India, despite being a second largest textile exporter in the world, lags in this category because of unavailability of manmade fibers at competitive prices.

The textiles value chain in India bears a differential tax treatment while countries like China, Pakistan, Sri Lanka, Indonesia, and Thailand follow a fiber neutral policy.

Low technology level

The Textile Industry is still equipped with low and outdated technologies especially in the power loom sector, processing, etc. In general, spending on R&D, product development, etc. by textile companies in India is quite low.

As a result, India has had a nominal presence in high value-added segments and innovation-driven technical textile segment.

Poor Access to Credit

Poor access to credit is one of the major hindrances in the growth of the sector. Major institutions providing input-credit are largely centralized and unable to reach the dispersed and largely home-based weavers and artisans.

Also, very few institutional sources are there to provide working capital to them. Due to this, artisans/weavers depend on their own sources of fund to cater to their fixed as well as working capital needs.

Absence of FTAs with major markets

Countries like Bangladesh, Turkey, Cambodia, Pakistan, etc. have duty free access in the major Textile markets of US and EU. Exporters from these countries enjoy duty preference ranging from 10% to 34%, depending on the product. Indian exports to these nations significantly more expensive compared to that from various other competing countries.

Fragmented nature of industry lacking economies of scale

Indian textile sector is largely unorganized and small in size, especially the fabric manufacturing, fabric processing, and garment manufacturing segments. These segments suffer from lack of capacities and use old technologies.

Capacity expansion or technology upgradation is a big challenge for these small and medium scale units with limited resources because of the higher risks perceived by lenders and also because of lack of awareness.

Technology Trends

Hygrocotton

Hygro cotton helps to regulate temperature and absorbs moisture more efficiently than another cotton. Welspun has launched a range of bedsheets and towels based on the hygro-cotton technology in the Indian market in 2018 although the products made with this technology had been introduced in the US in 2014.

Such products contribute 25% of its sales volume in the US market. The company estimates the figure to reach above 15% in the domestic market as well. With this technology, bedsheets regulate the temperature in the range of three-degree Celsius, the towels augment absorption and softness with each wash.

Augmentation

Textile based augmented reality systems and methods in which the relevant product uses an app, designed for the duvet cover and rug, which allows the user to experience the world of augmented reality, are being carried out by major brands.

Technical Textile Market

The technical textile industry is a high potential industry and is the fastest growing textile segment at the global level. Technical textile or advanced textile products provide for specialized use in healthcare, fire departments, aerospace, defense, automobile, railways, and other utilities.

These include specialized features such as fire retardants, stain resistant, anti-bacterial, PET resistant, and soil resistance, among others.

The technical textile industry is expected to expand at a CAGR of 13.11% during 2018–23 to USD 32 billion in 2023. India is expected to be a key growth market for the technical textile sector due to cost-effectiveness, durability, and versatility of technical textiles.

The government has supported the technical textile industry with an allotment of USD 1 billion for SMEs and an exemption in customs duty for raw materials used by the sector.

Pricing Trends

The price for various raw materials had been in a slight incremental order during the 12 months of 2018.

Regulatory Trends

  • Policies favor protecting small firms to encourage the establishment of a large number of small independent units in the spinning, weaving, and processing sectors.
  • The Union Ministry of Textiles along with Energy Efficiency Services Ltd (EESL), has launched a technology upgradation scheme called SAATHI (Sustainable and Accelerated Adoption of Efficient Textile Technologies to Help Small Industries) for reviving the powerloom sector of India.
  • The investment was made to promote modernization and up-gradation of the textile industry by providing credit at reduced rates. A subsidy of USD 216.25 million was released under this scheme in 2017.
  • Under the Union Budget 2018-19, USD 355.27 million has been allocated for this scheme.
  • The Cabinet Committee on Economic Affairs (CCEA) has approved a new skill development scheme named ‘Scheme for Capacity Building in Textile Sector (SCBTS)’ with an outlay of USD 202.9 million from 2017-18 to 2019-20.
  • Encourage new entrepreneurs to invest in sectors such as knitwear by increasing the allocation of funds to Mudra Bank from Rs 1,36,000 crore (USD 20.4 billion) to Rs 2,44,000 crore (USD 36.6 billion).
  • Upgrade labor skills by allocating Rs 2,200 crore (USD 330 million)
  • The Ministry of Textiles has signed a memorandum of understanding (MoU) with 20 e-commerce companies, aimed at providing a platform to artisans and weavers in different handloom and handicraft clusters across the country for selling their products directly to the consumer.
  • Memorandum of Understanding (MoU) worth Rs 8,835 crore (USD 1.3 billion) in areas such as textile parks, textile processing, machinery, carpet development and others, were signed during the Vibrant Gujarat 2017 Summit.
  • The Union Minister for Textiles inaugurated Meghalaya’s first-ever apparel and garment-making center to create employment opportunities in the region. The Union Minister for Textiles also mentioned Meghalaya has been sanctioned Rs 32 crore (USD 4.8 million) for promotion of handlooms.
  • Government has taken initiative to connect with 5 crore (50 million) village women to charkha (spinning wheel) in next 5 years with a view to provide them employment and promote khadi and also, they inaugurated 60 khadi outlets which were renovated and re-launched during the completion of KVIC s 60th anniversary and a khadi outlet.
  • The Textile Ministry has allocated Rs 690 crore (USD 106.58 million) for setting up 21 ready-made garment manufacturing units in seven states for development and modernization of Indian Textile Sector.

Other Key Market Trends

Government is contributing 3.67% of employer’s EPF for new workforce in addition to existing reimbursement of 8.33% employer contribution under Pradhan Mantri Rojgar Protsahan Yojana (PMRYP) for 3 years.

Overtime work has been increased from 50 hours per quarter to 100 hours per quarter.

Market Size and Forecast

The market value of India’s textile market as was around USD 164 billion, which is expected to touch USD 284 billion in value by 2020, growing at a CAGR of 13.58%. 70% of which is domestic consumption while exports constitute the rest 30%.

Domestic home textiles market will grow at 12% CAGR to reach a level of USD 15 billion in 2025 While, the technical textiles market is expected to grow by 13% CAGR over the same period to reach a level of USD 45 billion.

In terms of global ranking, India is ranked 2nd in textile export with 6% share and 5th in apparel export with a 4% share. Overall, India holds the second position with a 5% share of global exports.

Readymade garment makes up the largest export segment followed by cotton textile and manmade textile.

The export of readymade garment fluctuated during 2016-19. In 2017-18, India exported readymade garment valued USD 17.37 billion, an increase of 2.4% from 2016-17. However, the export value declined by 3.8% in 2018-19.

Similarly, the export of cotton textile fluctuated during 2016-19 however, the average export value remained at USD 10.42 billion in 2017-18. As for manmade textile, there was a leveling off of export during the four year period started 2016 with a marginal fluctuation of less than 4%.

On the import side, cotton textile, manmade textile, and readymade garment are the major products shipped in India. Import of cotton textile is dramatically growing since 2016. During 2018-19, India imported USD 2.45 billion worth of cotton textile.

Similarly, import of readymade garment is steadily rising at 30% growth rate. Import of Manmade textile has taken increasing pace to reach USD 2.26 billion import value in 2018-19 despite a slowdown in import during 2017-18.

Market Outlook

It is predicted that India will export USD 95.5 billion worth of textiles. Growing at a CAGR of 15.3%, the total exports will reach USD 145.6 billion by 2023.

Technical Textile Segment

The major service offerings of the technical textile industry include thermal protection and blood-absorbing materials, seatbelts and adhesive tapes. The technical textile industry is expected to expand at a CAGR of 13.11 percent during FY18–23 to USD 32 billion in FY23. The targeted market size would be achieved by targeting non-woven technical textiles.

Healthcare and infrastructure sectors are major drivers of the technical textile industry. India is expected to be a key growth market for the technical textile sector due to cost-effectiveness, durability, and versatility of technical textiles. The government has supported the technical textile industry with an allotment of USD 1 billion for SMEs and an exemption in customs duty for raw materials used by the sector.

Production

Production of Jute is estimated to reach 1.24 million metric tonnes by the end of 2020 from 1.21 million metric tonnes in 2018. 95% of the manufactured jute is projected to be consumed in the domestic market.

Similarly, 2.5 billion kilograms of manmade fiber is expected to be projected in 2020. 38% of the total production will be exported and 62% will be used in India. In 2018, there was a total of 2506 million kilograms of manmade fiber produced and of which 69% was consumed in India.

During 2017-18, a total of 3590 million kilograms of yarn was produced. Cotton yarn accounted for 75% of the total production while blended yarn held 16.7% production share. 290 million kilograms of 100% non-cotton yarn was produced in the same year.

Distribution Chain Analysis

The Fiber Production stage begins with the extraction and processing of fibers. The supporting activities involved in this stage are the transportation of raw materials from extraction location to processing and the preparation plant.

Yarn Preparation includes the spinning of yarn. Machinery used for such purpose includes both filament and staple fibers. Different spinning techniques (wet spinning and cotton spinning) are taken into consideration.

Fabric Preparation corresponds to knitting and weaving yarn into fabric. Two different knitting techniques (circular and flat) are taken into consideration. Transportation from the fabric preparation to the dying and finishing stage is included here.

Cotton accounts for 25% of global fiber production. In India, the proportion of cotton is around 59%. The consumption of cotton is more than 30 million bales per year.

India occupies the first position in the world in terms of cotton acreage with around 10.5 million hectares representing 35% of the global cotton cultivation area under cotton cultivation. Other raw materials used are jute, raw silk, and wool.

Dyeing and Finishing steps include bleaching and dying as well as fabric finishing.

Assembly refers to the cutting and sewing of fabric into apparel products.

Forward Distribution covers transportation from assembly location to retail stores.

Finally, buyers purchase the finished apparel from various retail stores around the globe.

Key Market Players

  • Welspun India Ltd

Welspun India Limited is an India-based multinational company engaged in the textile business. Its journey in textiles as Welspun Winilon Silk Mills Pvt. Ltd. began in 1985. The Company manufactures a range of home textile products, primarily terry towels, bed linen products, and rugs.

Its segments include Home Textiles and Power. The Home Textiles segment includes terry towels, bed sheets, pillows cases, rugs, carpets and others used for home furnishings. The Power segment includes the generation of power. Its brands include Christy, Spaces and Welcome. The Company’s major revenue share comes from the United States, which constitutes around 66-68% of its sales.

17-18% of sales come from European market while 6-7% of the sales arise from the domestic market. The company generated operating revenue of USD 885 million in 2018. The company’s market capitalization stood USD 818.89 million (INR 55.97 billion) in July 2019.

  • Vardhman Group

Vardhman Textiles Limited is an integrated textile manufacturer. The Company is engaged in manufacturing of cotton yarn, synthetic yarn, woven fabric, sewing thread, acrylic fiber, tow, and garments. The Company’s segments include Textiles and Fibre.

The Company also manufactures products, such as Organic Cotton, Melange, Core-Spun Yarns, Ultra Yarns (Contamination controlled), Gassed Mercerised, Super Fine Yarns, Slub, and Cellulose Yarns and Fancy Yarns for hand knitting. It made an income of USD 9.2 million (INR 6318 lakh) in 2018. It has a market cap of USD 882.85 million as of July 2019.

  • Alok Industries Ltd

Alok Industries Limited is a textile company with a presence in the cotton and polyester segments. The Company is engaged in manufacturing of textile, including mending and packing activities; leather and other apparel products. Its geographic segments include Domestic, which includes sales to customers located in India and International, which includes sales to customers located outside India.

Its divisions include Spinning, such as cotton yarn; Home Textiles, such as sheeting fabric, equivalent sheet sets, and terry towels; Apparel Fabrics, such as woven fabric (includes embroidery) and knits; Garments, and Polyester, such as continuous polymerization, partially oriented yarn (POY)/chip, draw texturized yarn (DTY), fully drawn yarn (FDY), polyester staple fiber/cationic yarn and master batch.

Its products include accessories, corrugated pallets, cotton, and blended yarn. It exports its products to over 90 countries across the United States, Europe, Latin America, Asia, and Africa. The Company made USD 822.11 million in total income in 2018. 79% of the revenue originated from the domestic market while 21% of income came from export sales.

The highest share of sales is from woven apparel fabric accounting for 44.71%. The USA remained the dominant market with 47.23% export share in the current year. It’s market cap stood USD 65.56 million in July 2019.

  • Raymond Ltd

Raymond Limited operates as a textile, lifestyle, and branded apparel company in India and internationally. It operates through Textile, Shirting, Apparel, Garmenting, Tools & Hardware, Auto Components, and Others segments.

The company offers wool, poly-wool, silk, polyester viscose blended, cotton blended, linen blended, and other blended suiting fabrics; and cotton and linen shirting fabrics under the Raymond Fine Fabrics brand name.

It also provides suits, jackets, trousers, and shirts; denim fabrics; menswear under the Raymond Ready-To-Wear, Park Avenue, Color Plus, Parx brands; and ethnic wear under the Ethnix brands.

In the branded textile segment, the company made USD 461.39 million (INR 3153 crore) in revenue while in the branded apparel segment, it made a revenue of USD 241 million (INR 1,647 crore) in 2018.

Branded textile represents 47% of the company’s business while branded apparel segment accounts for 24% if its business. 83% of the company’s revenue came from the domestic market while 17% of the revenue was made from export sales. It’s a market cap as of July 2019 remained USD 626.86 million.

Strategic Conclusion

The outlook for the Indian textile industry seems promising, coupled with both strong domestic consumption as well as export demand. India holds a 4.6% global share for textile export and in the next decade, Indian will enjoy over 10-15% share in global textile export. Majority of the Indian textile manufacturers export more than 40% of their production to the international market.

On the front end, the organized apparel segment is also expected to grow at a CAGR of more than 13 percent over a 10-year period. The Union Ministry of Textiles plans to enter into bilateral agreements with Africa and Australia along with working on a new textile policy to aim to double the textile export in a decade.