FDI In Textiles & Garments

Abundant availability of raw materials such as cotton, wool, silk, jute and manmade fibres has led India to be one of the world's largest producers of textiles and garments. The country has become an attractive destination for FDI in the Indian textile industry. The Indian domestic textile and apparel industry contributes 2% to India’s GDP, 14% of industrial production, 27% of the country’s foreign exchange inflows and constitutes 13% of country’s export earnings.

Foreign direct investment (FDI) in textile sectors and garment industries more than doubled to USD 618.95 million during 2016-17 from USD 230.13 million in the previous fiscal.


Industry Scenario

The sector is highly diversified with a wide range of segments, like products of traditional handloom, handicrafts, wool, silk products to the organised textile industry comprising of spinning, weaving, processing, apparel and garment characterised by the use of capital-intensive technology for mass production of textile products.

Further domestic consumption (USD 97 bn) is divided into household consumption (USD 83 mn) and technical textiles (USD 14 bn). 9% of the world’s total consumption of technical textiles is made in India. Exports (USD 40 bn) has textile exports (USD 23 bn) and apparel exports (USD 17 bn).


  • 1
    Largest producer of cotton & jute in the world
  • 2
    Second largest producer of polyester, silk & fibre in the world
  • 3
    Second largest employment provider in India



1. August 2017 - Toray, a Japanese MNC to invest USD 152.9 mn in manufacturing facility in Sri City

2. June 2017 - Max Fashion, a part of Dubai based Landmark Group, plans to expand its sales network to 400 stores in 120 cities by investing USD 60 mn  in the next 4 years.

3. March 2015 - Grasim Industries has invested USD 15 mn  to develop its first fabric brand, Liva', which it will distribute through 1,000 outlets as part of a plan to stay in sync with changing consumer behaviour.

FDI Facts

169% FDI growth in 2016-17 viz-a-viz 2015-16.

2.8bn FDI (in USD) in textile sector (including dyed, printed) during April 2000 - December 2017.

100% FDI is allowed  under the automatic route in the textile sector; investment is subject to all applicable regulations and laws.