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 12.5 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.
The Indian textile market was valued at US$ 146.55 billion in 2024 and is projected to grow to US$ 213.51 billion by 2033, registering a compound annual growth rate (CAGR) of 3.85% between 2025 and 2033. The apparel industry is one of the biggest contributors to the economy with a 2.3% 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 sixth largest exporter of textiles and apparel products in the world as of 2024 with a massive raw material and manufacturing base. In FY25, the share of textile and apparel in India’s total exports was 8.63% while India’s share of the global trade in textiles and apparel stood at 4.1% in CY24. Despite unprecedented logistics issues, India registered the highest-ever exports at US$ 37.7 billion in textiles and apparel (T&A) including handicrafts in FY25. Textile products worth a total of US$ 12.6 billion were exported in FY26 (April-July 2025) as compared to US$ 12.1 billion in FY25 (April-July 2024). Whereas apparel exports stood at US$ 15.99 billion in FY25 and US$ 14.53 billion in FY24. In FY26 (April-July 2025) exports of ready-made garments (RMG) stood at US$ 5.4 billion.
Based on product category, exports during FY26 (April-July 2025) witnessed an increase of 0.23% in cotton textiles followed by a decline of 0.25% in man-made textiles, a 7.74% growth in ready-made garments (RMG) and 0.92% growth in handicrafts. Exports of Cotton Textiles stood at US$ 3.69 billion during FY26 (April-July 2025).
The government is targeting US$ 100 billion in textile exports by 2030 and US$ 600 billion by 2047. The roadmap for achieving this production and export target was set by Ministry of Textiles in its vision 2047.
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, UAE, UK, Germany, and among others. The USA is the largest importer among all, importing about one-fourth of the total exports from India.
During FY25, the USA still remains the top export destination for the textile and apparel industry, accounting for a 28.97% share of overall exports which has grown from a 24% share witnessed in FY20. Union Minister of Textiles, Mr. Giriraj Singh, highlighted the importance of broadening the export portfolio, improving product competitiveness, and exploring new and underserved markets.
India has entered into 15 Free Trade Agreements (FTAs) with partner nations, whose combined textile import demand amounts to US$ 198.9 billion. The Minister encouraged exporters to focus on the European Union (EU), which imports textiles valued at US$ 268.8 billion, over twice the size of the US market. India is currently in active FTA negotiations with the EU.
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.
The textile sector has been a major recipient of additional PLI funding, with its allocation surging from US$ 5.15 million in Union Budget 2024-25 to US$ 131.5 million in the Union Budget 2025-26, supporting India’s vision to establish itself as a leading textile hub globally.
The Mission Steering Group under the chairmanship of Union Minister of Textiles has approved 19 research projects of value approximately US$ 2.52 million across different fields of technical textiles under the National Technical Textiles Mission. The research projects were approved across key strategic areas of composites, geo textiles, smart textiles and machineries etc. in the 9th Mission Steering Group meeting. The approved projects were proposed by eminent research bodies and institutions including Indian Institute of Technology, National Institute of Technology, and Council of Scientific & Industrial Research etc. The Union Minister also reviewed the progress on R&D, promotion and market development, export promotion and education, training and skill development under the Mission. The Union Minister reviewed 27 applications from 16 public and 11 private institutes which were earlier approved for introducing papers on technical textiles, procuring lab infrastructure and training of trainers across different application areas. He also reviewed internship initiatives and skilling initiatives taken by the Ministry under the Mission.
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 FY22 to FY26. 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 US$ 900 million in FY21 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. National Technical Textiles Mission (NTTM) was launched in FY21 which is valid until March 31, 2026, with an outlay of US$ 178.74 million, with a view of positioning the country as a global leader in Technical Textiles. The Mission has four components – component 1 which includes research, innovation and development, component 2 which includes promotion and market development, component 3 which includes export promotion, and component 4 which includes education, training and skill development. So far, 137 research projects have been approved under the component 1 of NTTM. The total cost approved of the said projects by the Government is ~US$ 57.33 million.
Inspired by the 5F Vision of the Prime Minister Mr. Narendra Modi, Bharat Tex 2024, the largest global textile event in India with a unified Farm to Fashion focus, was held in New Delhi in February 2024. The four-day event witnessed an overwhelming response from Indian and global players including top brands and retailers. The mega event was organised by a consortium of 11 Textile Export Promotion Councils and supported by the Ministry of Textiles. The event focused on trade, investment, and sustainability, attracting over 3,500 exhibitors, 3,000 buyers from 111 countries, and over one lakh trade visitors. Spanning around 2 million sq. ft. across two venues, Bharat Mandapam and Yashobhoomi, the event highlighted the entire textile value chain, featuring highlights like Vastra Katha, an artistically curated textile narrative. Multiple Memorandum of Understandings (MoUs) were signed during the event.
Government Body
Apparel Export Promotion Council (AEPC)
The AEPC 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 input 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
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