FDI In Textiles & Garments

India’s textiles sector is one of the oldest industries in Indian economy dating back several centuries. India's overall textile exports during FY 2017-18 stood at USD $39.2 bn in FY18 and is expected to increase to USD $82 bn by 2021 from USD $31.65 bn in FY19.

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 thanks to foreign direct investment policy in textiles. 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. Exports in the Textiles & garments industry are expected to reach $300 bn by 2024.


  • 1

    Largest producer of cotton and jute in the world

  • 2

    2nd largest producer of polyester, silk and fibre in the world

  • 3

    2nd largest employment provider in India

The Indian textiles industry, currently estimated at around USD $150 bn, is expected to reach USD $250 bn by 2021

India’s textiles industry contributed 7% of the industry output (in value terms) of India in 2017-18

The domestic Textile & garments industry stood at $137 bn in 2016

Out of $137 bn, textile worth $97 bn was domestically consumed while the remaining portion worth $40 was exported to the world market

The domestic consumption of $97 bn was divided into household consumption at $83 bn and the technical textiles at $14 bn

India attracted (including dyed and printed) Foreign Direct Investment (FDI) for garment industries worth USD $3.09 bn during April 2000 to December 2018

  • Rising per capita income

    Higher disposable incomes & preferences for brands
  • Organized retail landscape & e-Commerce

    India is the 5th largest global destination in the
  • Favourable demographic trends

    Contribute to the growth potential of textiles sec
  • Changing lifestyles

    Increasing demand for quality is set to fuel the n
  1. Apr 2019: Voltas and Japanese Shima Seiki have entered an agreement for sales and marketing of Shima's products in India.
  2. Aug 2018: The Government of India announced a Special Package to boost exports by USD $31 billion, create 1 crore job opportunities and attract investments worth Rs.8 lakh crores (USD $11.93 bn) during 2018-2020.
  3. May 2018: The textiles sector recorded investments worth Rs.27, 000 crore (USD $4.19 bn) since June 2017.
  4. Aug 2017: Toray, a Japanese MNC to invest $152.9 mn in the manufacturing facility in Sri City, Andhra Pradesh.
  5. Jun 2017: Max Fashion, a part of Dubai based Landmark Group, plans to expand its sales network to 400 stores in 120 cities by investing $60 mn in the next 4 years.

  • $3.1 bn FDI for textiles sector (including dyed, printed) during April 2000 – March 2019
  • According to FDI limit in textile industry in India, 100% FDI is allowed under the automatic route in the textile sector; investment is subject to all applicable regulations and laws

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