The textile industry in India is not just an economic sector but a cultural identity. From Indus Valley cotton to modern technical textiles, it remains a backbone of exports, employment, and MSME growth. For UPSC aspirants, India’s textile sector is important for both Prelims (facts, ranks, schemes) and Mains (analysis of challenges, reforms, and global standing). In this article, we cover its importance, the government’s 5F formula, sectoral structure, key initiatives, and way forward.

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India’s Textile Industry

 About

• India’s textile industry is one of the oldest in the world, with evidence of cotton cultivation and weaving from the Indus Valley Civilization.

• The sector represents both:

  • Traditional heritage industries – handlooms, handicrafts, khadi.

  • Modern industries – apparel exports, man-made fibres, technical textiles.

• Recently highlighted by the inauguration of PM MITRA Park in Dhar, Madhya Pradesh.

• The Government promotes the 5F Formula – Farm → Fibre → Factory → Fashion → Foreign, ensuring an integrated textile ecosystem.

 Why India’s Textile Sector Matters?

1. Exports

   • Contributes about 12% of India’s total exports (~₹2.8 lakh crore in 2023–24).

   • Textile & apparel exports stood at US$ 34.4 billion in 2023–24.

2. Employment

   • Provides direct employment to over 45 million people.

   • Creates indirect employment for nearly 60 million more.

   • Second largest employer after agriculture.

3. MSME Backbone

   • Around 80% of the sector’s capacity lies in small and medium enterprises.

   • Supports rural livelihoods and women-led enterprises.

4. Market Size

   • Estimated at $174 billion in 2023.

   • Projected to grow to $250 billion+ by 2030.

5. Global Standing

   • 2nd largest producer of cotton & silk.

   • 1st in jute production (~75% global share).

   • 9th in wool production.

   • Among top 5 in technical textiles.

   • Biggest global textile exporter = China, followed by the EU, Bangladesh, Vietnam, and India.

 Structure of the Sector

1. Cotton

   • India is the 2nd largest producer globally.

   • Cultivates all four commercial species of cotton.

   • Major producing states: Maharashtra, Gujarat, Telangana, Andhra Pradesh, MP, Karnataka.

2. Silk

   • India is the 2nd largest producer of silk.

   • Unique for producing all 4 varieties – Mulberry, Tussar, Muga, and Eri.

   • Major silk states: Karnataka, Andhra Pradesh, Assam, West Bengal.

3. Jute

   • India is the largest producer in the world, with nearly 75% of global output.

   • Major jute belts: West Bengal, Assam, Bihar, Odisha.

4. Wool

   • India is the 9th largest producer.

   • Produces mainly coarse wool (Rajasthan, Himachal Pradesh, Jammu & Kashmir).

   • Fine wool largely imported from Australia and New Zealand.

5. Handicrafts and Handlooms

   • Famous for Banarasi silk, Pashmina, Bhagalpuri tussar, Kanchipuram silk, Rajasthan block prints.

   • Exported to 100+ countries, promoting India’s soft power.

6. Technical Textiles

   • India is the 5th largest producer.

   • Applications: defence (bulletproof jackets), agriculture (geotextiles), healthcare (PPE kits, surgical masks), and infrastructure.

   • Market size: ~$22 billion, with huge growth potential.

 Government’s New Push

• Focus on integrated value chains under the 5F Formula.

• Developing mega textile parks (PM MITRA) for end-to-end production.

• Promoting green textiles (organic cotton, recycled fabrics, eco-friendly dyeing).

• Pushing technical textiles as a sunrise sector.

• Leveraging FTAs with EU, UK, Canada to boost competitiveness.

• Digital adoption and branding Indian textiles globally (GI tags, India Handloom Brand).

 Key Government Schemes

1. PM MITRA Parks (2021)

   • 7 integrated parks across India.

   • Provides ₹500 crore support for Greenfield parks; 30% cost support for Brownfield parks.

2. PLI Scheme for Textiles (₹10,683 crore)

   • Incentivises production of man-made fibre (MMF) and technical textiles.

3. RoSCTL (Rebate of State and Central Taxes & Levies)

   • Provides tax/duty rebate to apparel exporters.

4. RoDTEP (Remission of Duties and Taxes on Exported Products)

   • Refunds embedded taxes on exported goods.

5. SAMARTH Scheme

   • Aims to skill 10 lakh workers in the textile value chain.

6. National Technical Textiles Mission (2020–30)

   • To make India a global hub of technical textiles by 2030.

7. Other Initiatives

   • Handloom Export Promotion Council (HEPC).

   • Integrated Textile Parks Scheme.

   • Khadi & Village Industries Commission (KVIC).

Prelims

• India’s global ranks: Cotton – 2nd, Silk – 2nd, Jute – 1st, Wool – 9th, Technical textiles – 5th.

• Biggest textile exporter: China.

• PM MITRA park: ₹500 crore Greenfield support; 30% Brownfield support.

Way Forward

1. Policy & Trade

   • Conclude FTAs with EU, UK, Canada.

   • Push for comprehensive CEPA/CECA with developed economies.

2. Green & Sustainable Textiles

   • Promote organic cotton, bamboo fibres, recycled fabrics.

   • Incentivise low-water dyeing, eco-certifications.

3. Technical Textiles

   • Expand R&D for defence, medical, automotive, geo-textiles.

   • Target $100 bn technical textile market by 2047.

4. MSME Integration

   • Strengthen cluster-based supply chains.

   • Common facilities for dyeing, design, quality testing.

5. Skill Development & Innovation

   • Expand SAMARTH.

   • Encourage startups in fashion-tech & textile design.

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