Economic Survey Report: In its assessment of the textile sector, the Economic Survey highlights that India is the sixth largest exporter of textiles and apparel globally, contributing significantly to the Gross Domestic Product of the country, industrial production and exports.
The sector is also one of the largest employment generators, with over 45 million people employed directly, including many women and the rural population. As further evidence of the inclusive nature of this sector, nearly 80 % of its capacity is spread across Micro, Small and Medium Enterprises (MSME) clusters in the country.
The Survey stated that India exported textile items worth USD 34 billion in 2023, with apparel constituting 42% of the export basket, followed by raw materials/semi-finished materials at 34% and finished non apparel goods at 30%.
Europe and the US consumed nearly 66% of India’s apparel exports, 58% of finished non-apparel goods and 12% of raw materials/semi-finished materials. Other prominent destinations include the UK (8%) and the UAE (7%). The Survey points out that textile exports remained resilient throughout the COVID-19 period (2020 to 2022).
The Survey concludes that Government programs like PM MITRA through creating textile parks with world-class plug-and-play infrastructure would support integrated supply chains and also attract foreign direct investments into the textile sector.
It adds that as MMF products require heavy research and development suited to different use cases, the National Technical Textiles Mission (NTTM) has been approved with an outlay of ₹1,480 crore with research as a key component. During 2024, 168 research projects have been approved under the NTTM mission.
It adds that Scheme for Rebate of State and Central Taxes and Levies has also been extended up to 31 March 2026 to encourage exports. The Economic Survey concludes that India’s textile sector has several tailwinds working in its favour that augur well for the sector.
