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FDI In Textiles & Garments

India's textiles sector is one of the oldest industries in the Indian economy, dating back several centuries. The domestic textiles and clothing industry accounts for 5% of India's GDP, 7% of industry output in value terms, and 12% of the country's export revenues. FDI in the textiles and clothing industry has reached $3.75 billion as of March 2021. India's textile and apparel exports are predicted to reach $65 billion by 2025-26, expanding at an 11 percent CAGR.

The abundant availability of raw materials such as cotton, wool, silk, jute, and artificial fibers has led India to be one of the world's largest producers of textiles and garments. In addition, the country has become an attractive destination for FDI in the Indian textile industry thanks to foreign direct investment policy.

India has also surpassed China as the world's second-largest producer of personal protective equipment (PPE). Today, more than 600 companies in India are qualified to manufacture personal protective equipment, with global market size of more than $92.5 billion by 2025, up from $52.7 billion in 2019.

  • 28 %

    Expected sector CAGR(2016-2021)

  • 2 %

    Share in India's GDP

  • 12 %

    Textile exports share in overall exports

  • 45 mn

    Employment generated

  • 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

  • From $103.4 billion in 2020-21, the textile and apparel sector will grow to $190 billion by 2025-26.
  • In 2019-20, the domestic textiles and clothing sector generated $108.5 billion, of which $75 billion was used domestically and the remainder $28.4 billion was exported to the global market.
  • The sector's share in India's GDP is 2 percent. 
  • The $75 billion in domestic consumption was split between clothes ($55 billion), technical textiles ($15 billion), and home furnishings ($5 billion). 
  • While apparel exports were $12 billion, home textiles exports totaled $4.8 billion, fabric exports totaled $4 billion, yarn exports totaled $3.8 billion, fiber exports totaled $1.8 billion, and other exports totaled $2 billion.
  • Rising per capita income

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

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

    Contribute to the growth potential of textiles sector in India
  • Changing lifestyles

    Increasing demand for quality is set to fuel the need for apparel
  • Feb 21- To make India's textile industry more globally competitive, the government has announced the Mega Investment Textiles Parks (MITRA) initiative launch.
  • Jan 21- The Ministry of Textiles and Japan's Nissenken Quality Evaluation Centre struck an agreement to give the necessary support to aid textile commerce and industry in assuring quality following Japanese customer's requirements.
  • Nov 21- Amazon India has signed a memorandum of understanding with the Silk Mark Organization of India to develop an exclusive Silk Mark Store, featuring Silk Mark-branded products sold by multiple sellers affiliated with the organization.
  • Sep 21- With over 5,000 sellers and 30,000 consumers from all over the world, India is hosting the world's largest virtual textile market.

  • $3.74 bn FDI for textiles sector (including dyed, printed) during April 2000 – March 2021.
  • According to the FDI limit in the 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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