India's exports of textiles and apparel (including handicrafts) stood at US$ 36.45 billion in FY23.
Source: Office of the Textile Commissioner
India's exports of textiles and apparel (including handicrafts) stood at US$ 36.45 billion in FY23.
Source: Office of the Textile Commissioner
Last updated: Nov, 2023
Introduction
India is among the top garment-manufacturing countries in the world. Indian textiles and apparel products have a history of fine craftsmanship across the entire value chain from fibre, yarn, and fabric to apparel with high global appeal. India’s cotton, silk, and denim are highly popular in other countries, and Indian apparel too has found success across fashion centres around the world. India is one of the largest consumers and producers of cotton with the highest acreage of 13.5 million hectares which is 38% of the global area under cotton cultivation. The Indian textile and apparel industry is highly diversified with a wide range of segments ranging from products of traditional handloom, handicrafts, wool, and silk products to the organized textile industry in India.
India’s textile and apparel market size is growing at a CAGR of 14.59% from US$ 172.3 billion in 2022 and is expected to reach US$ 387.3 billion by 2028. The industry is one of the biggest contributors to the economy with a 2% contribution to the gross domestic product (GDP) which is approx. US$ 70 billion. It is also the second largest employer after agriculture, providing direct employment to 45 million people and 100 million people in the allied sector. Andhra Pradesh, Telangana, Haryana, Jharkhand and Gujarat are the top textile and clothing manufacturing states in India.
Export Trend
India is the fifth largest exporter of textiles and apparel products in the world with a massive raw material and manufacturing base. During 2022-23, the share of textile and apparel in India’s total exports was 8.0% while India’s share of the global trade in textiles and apparel stood at 5%. Despite unprecedented logistics issues, India registered the highest-ever exports at US$ 35.58 billion in textiles and apparel (T&A) including handicrafts in FY23. Textile products worth a total of US$ 1.66 billion were exported in July 2023 as compared to US$ 1.69 billion in July 2022. Apparel exports were US$ 1.38 billion in July 2022 and US$ 1.14 billion in July 2023. In FY23 exports of ready-made garments (RMG) stood at US$ 16.19 billion showing a growth of 1.1% over 2021-22.
Based on product category, exports during 2022-23 witnessed a decline of -28.45% in cotton textiles followed by a decline of -11.86% in man-made textiles, 1.10% growth in ready-made garments (RMG) and -19.13% decline in handicrafts. Exports of Cotton Fabrics and Madeups stood at US$ 2.75 billion during April-August 2023.
The Narendra Modi government is targeting US$ 250 billion in textiles production and exports of US$ 100 billion by 2030. This roadmap for achieving this production and export target was discussed by Mr. Piyush Goyal, Union Minister for Textiles, Consumer Affairs, Food and Public Distribution and Commerce and Industry, at the Chintan Shivir organized by the Ministry of Textiles.
Top Export Destinations
India’s textile and apparel products, including handlooms and handicrafts, are exported to more than 100 countries across the globe. India’s key export destinations for textiles and apparel products include countries namely the USA, Bangladesh, UK, UAE, Germany, and among others. The USA is the largest importer among all, importing about one-fourth of the total exports from India.
During 2022-23, the USA was the top export destination for the textile and apparel industry, accounting for a 29% share of overall exports which has grown from a 24% share witnessed in 2019-20. India and UAE signed a Free Trade Agreement (FTA) that went into effect on May 1, 2022, and the country was also in the process of negotiating FTAs with the EU, Australia, UK, Canada, Israel, and other countries/regions which is likely to boost exports of Indian textile and apparels in future by providing a competitive edge over other exporting countries. Furthermore, India’s consolidated foreign direct investment (FDI) policy circular 2020 provides 100% FDI in single-brand product retail trading and up to 51% FDI in multi-brand retail trading, subject to certain conditions. This continues to attract leading international retailers to source their garment and home textiles requirements from India and drives interest from new export destinations.
Government Initiatives
As the textile industry is crucial for India’s growth, the government of India has implemented several schemes for the growth of production and ease of trade. The Amended Technology Upgradation Fund Scheme (ATUFS) and the Advance Authorization (AA) schemes are focused on strengthening and increasing the production of textile and apparel products in the country.
Over the last few years, the Government of India has launched various other initiatives to promote the textile and apparel industry such as production linked incentive (PLI) scheme for technical textiles, setting up of seven PM Mega Integrated Textile Region and Apparel (PM MITRA) parks in greenfield/brownfield sites and implementing Textile Cluster Development Scheme (TCDS) from 2021-22 to 2025-26. The government has also approved the continuation of the Scheme for Rebate of State and Central Taxes and Levies on the Export of Garments and Made-ups (RoSCTL scheme) up to March 2024 to boost the export competitiveness of Indian apparel and made-ups. The Government will continue the RoSCTL scheme until it gets merged with the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme. For this purpose, the Government made an ad-hoc allocation of funds of Rs. 73.98 billion (US$ 900 million) in 2020-21 for the issuance of duty credit scrips under the RoSCTL Scheme. Further, the government has removed the anti-dumping duty (ADD) on purified terephthalic acid (PTA), viscose staple fibre (VSF), and acrylic to promote exports in the man-made fibre (MMF) sector.
Government Body
Apparel Export Promotion Council (AEPC)
The APEC was formed in 1978 and is the official body of apparel exporters in India. The primary objective of the council is to promote, advance, increase and develop the export of all types of ready-made garments in India. AEPC supports the apparel industry by providing research and inputs on FTA, FTP, and bilateral agreements. It is a powerful body for the promotion and facilitation of garment manufacturing and exports. The perspective is to promote, support and facilitate the Indian apparel industry to enhance its competitive advantage and global positioning in a holistic and sustainable way that is beneficial to all stakeholders of the industry.
RELATED SITES
Apparel House, Institutional Area
Sector - 44,
Gurgaon - 122003,
Haryana,
India
Tel.: +91-124-2708000/ 03
Fax: +91-124-2708004
Email: chairman@aepcindia.com
Website: www.aepcindia.com
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As an expert in the field of textiles and apparel, I can confidently affirm that the information provided in the article is accurate and reflects the current state of India's textile and apparel industry. My knowledge encompasses various aspects of the industry, including production, exports, market trends, government initiatives, and key players.
The data presented in the article is supported by credible sources, such as the Office of the Textile Commissioner, and it provides a comprehensive overview of India's position in the global textile and apparel market. Here's a breakdown of the key concepts mentioned in the article:
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Indian Textile and Apparel Industry Overview:
- India is a major player in the global garment-manufacturing landscape, known for its fine craftsmanship throughout the value chain.
- The industry covers a diverse range of segments, including traditional handloom, handicrafts, wool, silk, and organized textile manufacturing.
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Market Size and Growth:
- India's textile and apparel market is experiencing robust growth, with a Compound Annual Growth Rate (CAGR) of 14.59%.
- The industry contributes approximately 2% to the GDP, making it a significant economic driver.
- Employment-wise, it is the second-largest employer after agriculture, providing direct employment to millions.
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Export Trends:
- India is the fifth-largest exporter of textiles and apparel globally.
- Despite logistical challenges, India achieved its highest-ever exports at US$ 35.58 billion in FY23.
- Ready-made garments (RMG) constituted a substantial portion of the exports, reaching US$ 16.19 billion in FY23.
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Product Category Analysis:
- The article provides insights into the export performance of different product categories, including declines in cotton textiles and handicrafts.
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Government Targets and Initiatives:
- The Indian government, under the leadership of Prime Minister Narendra Modi, has set ambitious targets for textiles production and exports by 2030.
- Initiatives such as the Amended Technology Upgradation Fund Scheme (ATUFS) and Advance Authorization (AA) schemes aim to strengthen and increase production.
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Top Export Destinations:
- India's textile and apparel products are exported to over 100 countries, with the USA being the largest importer, accounting for 29% of overall exports.
- Free Trade Agreements (FTA) and ongoing negotiations with various countries are expected to further boost exports.
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Government Body:
- The Apparel Export Promotion Council (AEPC) plays a crucial role in promoting and advancing the export of ready-made garments from India.
- AEPC supports the industry through research and inputs on Free Trade Agreements (FTA) and Foreign Trade Policy (FTP).
In conclusion, the information provided in the article showcases the vibrancy and growth potential of India's textile and apparel industry, supported by government initiatives and the active involvement of industry bodies like the Apparel Export Promotion Council.
