The Magnificent Proliferation to the Indian Textile Industry

Indian Textile Industry



India is the one of the world's largest producers of textiles and garments. Abundant availability of raw materials such as cotton, wool, silk and jute as well as skilled workforce have made the country a sourcing hub. It is the world's second largest producer of textiles and garments. The Indian textiles industry accounts for about 24 per cent of the world's spindle capacity and eight per cent of global rotor capacity. The potential size of the Indian textiles and apparel industry is expected to reach US$ 223 billion by 2021, according to a report by Technopak Advisors.

The sector contributes about 14 per cent to industrial production, four per cent to the gross domestic product (GDP), and 27 per cent to the country's foreign exchange inflows. It provides direct employment to over 45 million people. India has overtaken Italy, Germany and Bangladesh to emerge as the world's second largest textile exporter, as per recent data released by 'UN Comtrade'. India's share in Global Textiles increased by 17.5 per cent in 2013 compared to 2012.

The Textiles Vision Document formulated by the National Manufacturing Competitiveness Council (NMCC) has projected that textiles exports from India will touch US$ 300 billion by the year 2024-25.


Market Size

The Indian textiles industry is set for strong growth, buoyed by strong domestic consumption as well as export demand.

The most significant change in the Indian textiles industry has been the advent of man-made fibres (MMF). India has successfully placed its innovative range of MMF textiles in almost all the countries across the globe. MMF production recorded an increase of three per cent during the period April-July 2014.

Cotton yarn production increased by four per cent during April-July 2014. Blended and 100 per cent non-cotton yarn production increased by five per cent during April-July 2014.

Cloth production by mill sector registered a growth of six per cent during April 2013-July 2014.

Cloth production hosiery sector increased by eight per cent during April-July 2014. Total cloth production grew by two per cent during April-July 2014.



The textiles sector has witnessed a spurt in investment during the last five years. The industry (including dyed and printed) attracted foreign direct investment (FDI) worth US$ 1,495.07 million during April 2000 to September 2014.

Some of the major investments in the Indian textiles industry are as follows:

  • Arvind Lifestyle plans to invest Rs 126 crore (US$ 20.37 million) as capital expenditure this fiscal to expand its footprint. "We are looking at Rs 126 crore (US$ 20.37 million) capex this fiscal, up from Rs 90 crore (US$ 14.54 million) spent last fiscal, as we plan to open around 200 stores,"said Mr J Suresh, Managing Director and Chief Executive, Arvind Lifestyle.
  • Sangam India plans to venture into the seamless garment segment with an investment of Rs 120 crore (US$ 19.39 million). The company plans to set up 10,000 spindles for slub yarn and a mercerise unit, besides modernising the processing division.
  • Non-resident Indian (NRI) businessman Mr Apurv Bagri has acquired controlling stake in leading Indian denim maker Spykar Lifestyle. Mr Bagri's Metmin Investment Holdings has bought a 30 per cent stake from private equity (PE) firm Avigo Capital, which owns a majority stake in Spykar.
  • Arvind Lifestyle Brands plans to foray into the children's wear retail segment in India, as it has signed a franchise agreement worth US$ 1.8 billion with US-based The Children's Place.
  • Private Equity (PE) firm Everstone plans to invest Rs 100 crore (US$ 16.16 million) for an undisclosed minority stake in the fashion label of designer Ritu Kumar.


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