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Apparel and Garment Industry and Exports

Apparel

Last updated: Apr, 2025

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.

India’s textile and apparel market size is growing at a CAGR of 14.59% from US$ 172.3 billion in 2022 and is expected to reach US$ 387.3 billion by 2028.
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 2023
with a massive raw material and manufacturing base. In FY24, the share of textile and
apparel in India’s total exports was 8.21% while India’s share of the global trade in textiles
and apparel stood at 3.9%. Despite unprecedented logistics issues, India registered the
highest-ever exports at US$ 35.58 billion in textiles and apparel (T&A) including
handicrafts in FY23. Textile products worth a total of Rs. 15,429 crore (US$ 1.79 billion)
were exported in January 2025 as compared to Rs. 13,274 crore (US$ 1.54 billion) in
January 2024. Whereas apparel exports stood at Rs. 13,792 crore (US$ 1.60 billion) in
January 2025 and Rs. 12,412 crore (US$ 1.44 billion) in January 2024. In FY25 (April-
January) exports of ready-made garments (RMG) stood at Rs. 1,11,284 crore (US$ 12.91
billion).

Based on product category, exports during FY24 witnessed an increase of 6.71% in cotton
textiles followed by a decline of 5.46% in man-made textiles, 0.24% decline in ready-made
garments (RMG) and 36.62% growth in handicrafts. Exports of Cotton Fabrics and
Madeups stood at US$ 11.68 billion during FY24.

The government is targeting US$ 1.8 trillion domestic textile market and exports of US$
100 billion 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 (April to December), the USA is the top export destination for the textile and
apparel industry, accounting for a 29% share of overall exports which has grown from a
24% share witnessed in FY20. India and UAE signed a Free Trade Agreement (FTA) that
went into effect on May 1, 2022, and the country was also in the process of negotiating
FTAs with the EU, Australia, UK, Canada, Israel, and other countries/regions which is likely
to boost exports of Indian textile and apparels in future by providing a competitive edge
over other exporting countries. Furthermore, India’s consolidated foreign direct
investment (FDI) policy circular 2020 provides 100% FDI in single-brand product retail
trading and up to 51% FDI in multi-brand retail trading, subject to certain conditions. This
continues to attract leading international retailers to source their garment and home
textiles requirements from India and drives interest from new export destinations.

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 Rs. 45 crore (US$ 5.15 million) to Rs. 1,148 crore (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 approx. Rs. 21 crore (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 Rs.
73.98 billion (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 (Rs. 1,480 crore),
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 (Rs. 474.7 crore).

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 APEC 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,
APPAREL EXPORT PROMOTION COUNCIL ! MINISTRY OF TEXTILES ! Gurgaon - 122003,
Haryana,
THE TEXTILE ASSOCIATION (INDIA) (TAI) ! India

Tel.: +91-124-2708000/ 03
NORTHERN INDIA TEXTILE MILLS' ASSOCIATION ! Fax: +91-124-2708004
Email: [email protected]
Website: www.aepcindia.com
THE SOUTH INDIA TEXTILE RESEARCH ASSOCIATION (SITRA) !

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