The latest update and industry analysis of the Indian textiles and apparel sector for March, 2018 indicates textile contributes to 14 per cent of industrial production and 4 per cent to GDP. With over 45 million people, the industry is one of the largest source of employment generation in the country. The industry accounts for nearly 15 per cent of total exports.
The size of India’s textile market in 2016 was around $ 137 billion, which is expected to touch $ 226 billion market by 2023, growing at a CAGR of 8.7 per cent between 2009-23 (estimated). Production of raw cotton in India grew from 28 million bales in FY07 and further increased to 35.1 million bales in FY17. During FY07-17, raw cotton production expanded at a CAGR of 2.3 per cent During FY16 (till February 2017), domestic consumption was 30 million bales, while in FY15, domestic consumption of raw cotton stood at 30.4 million bales Raw cotton and man-made fibres are major segments in this category.
Khadi products sales increased by 33 per cent year-on-year to Rs 2,005 crore ($311.31 million) in 2016-17 and is expected to exceed Rs 5,000 crore ($776.33 million) target for 2018-19, as per the Khadi and Village Industries Commission (KVIC).
The production of cotton in India is estimated to increase by 9.3 per cent year-on-year to reach 37.7 million bales in FY 2017-18. The total area under cultivation of cotton in India is expected to increase by 7 per cent to 11.3 million hectares in 2017-18, on account of expectations of better returns from rising prices and improved crop yields during the year 2016-17.
Indian exports of locally made retail and lifestyle products grew at a CAGR of 10 per cent from 2013 to 2016, mainly led by bedding bath and home decor products and textiles. The textiles sector has witnessed a spurt in investment during the last five years. The industry (including dyed and printed) attracted Foreign Direct Investment (FDI) worth $2.68 billion during April 2000 to September 2017.