India’s apparel sector presents significant opportunities for investors in a rapidly growing sector. As a leading producer and consumer of cotton, India is also among the top manufacturers of polyester, silk, and personal protective equipment (PPE). With its expanding market, the Indian apparel industry is a vibrant hub for investment.
Global Presence and Market Growth
India is a major player in the global textiles and apparel market, holding a 4.6% share in global trade and 10.5% of the country’s total exports. Textile exports reached $44.4 billion in FY 2021-22, with the government aiming to increase this to $100 billion by 2030. The domestic industry contributes 2.3% to GDP, 13% to industrial production, and 12% to exports.
Employment and Sustainability
The textiles and apparel industry is the second-largest employer in India, providing direct employment to 45 million people and indirect employment to 100 million in related industries. Cotton production supports 6.5 million farmers and many more involved in processing and trade. Silk production, including Eri and Muga silks, has also grown steadily, with India producing 94 lakh bales of raw jute in FY 2022-23.
Technical Textiles and New Opportunities
India is emerging as a leader in technical textiles, ranking fifth globally with a market size of $22 billion, aiming to reach $300 billion by 2047. Exports of technical textile products grew by 28.4% from 2020-21 to 2021-22. The Production Linked Incentive (PLI) scheme, with an outlay of INR 10,683 crore, promotes man-made fiber (MMF) apparel and technical textiles, providing further opportunities for investors in sectors like automotive, healthcare, and infrastructure.
Key Attractions:
- Global Leader: Among the largest producers of textiles, apparel, and cotton globally.
- High Export Growth: Textile exports reached $44.4 billion in FY 2021-22, projected to hit $100 billion by 2030.
- Second Largest Employer: Provides direct employment to 45 million people.
- Growing Technical Textiles: Fifth largest producer, with the market projected to grow from $22 billion to $300 billion by 2047.
- Government Support: PLI Scheme with INR 10,683 crore allocated to boost MMF apparel and technical textiles.
- Competitive Advantage: Abundant raw materials, skilled labor, and competitive production costs with rising domestic demand.
Investment Potential
The Indian textile and apparel market was valued at $165 billion in 2022, with the domestic market at $125 billion and exports at $40 billion. The market is expected to grow at 10% CAGR, reaching $350 billion by 2030. Under the PLI scheme, 64 projects have been approved, involving an investment of INR 19,798 crore and expected to create over 245,000 jobs.
Strengths Across the Value Chain
The Indian apparel sector has a well-established presence across the entire value chain—from fiber and yarn to fabric and apparel. This capability includes traditional handloom products, handicrafts, wool, and silk. Abundant raw materials, skilled manpower, competitive costs, and a large domestic market make India attractive for investment.
Challenges and Future Outlook
India’s reliance on cotton limits its ability to compete with China, but diversification and increased technical textile production can help address this. With strong government support and growing global demand, the Indian apparel sector offers substantial opportunities for both domestic and international investors.
The Indian apparel and textile industry is dynamic and growing, with vast production capabilities, government support, and a strong domestic market. The sector presents a goldmine of opportunities for investors looking to tap into a promising future. For more details, refer to the Invest India website.
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