The textile sector in India is witnessing huge FDI inflows. FDI of up to 100 per cent is allowed in the textiles sector through the automatic route. Growth in FDI inflows into the textile sector has also led to a growth in job prospects in the country. Currently the textile industry employs about 51 million people directly and 68 million people indirectly and this is expected to grow further.

Textile, one of the oldest industries in the Indian economy, dates back several centuries. The sector currently contributes about 14 per cent to industrial production, four per cent to GDP, and 17 per cent to the country’s export earnings. The industry accounts for nearly 12 per cent of the country’s total exports.

The Indian textile industry is extremely varied, with hand-spun and hand-woven textiles at one end of the spectrum, and capital intensive sophisticated mills at the other end. Some of the initiatives taken to promote the industry include introduction of a mega package for the power loom sector, including social welfare schemes, insurance cover, cluster development, and upgradation of obsolete looms. A memorandum of understanding has been signed with over 20 e-commerce companies, aimed at providing a platform to artisans. A slew of labor-friendly reforms has been announced.