The textile industry in India is one of the oldest and largest industries, contributing 2.3% to the country’s GDP, 12% to export revenue, and 13% to industrial production. Few of the world’s top textile companies are in India. The Indian textile industry primarily focuses on yarn, cotton fabric, ethnic apparel design, production, and distribution. The Indian textile industry is dominated by yarn and fabric cotton buyers and sellers, power looms, and knitting sectors.
As one of the oldest and largest textile trading specialists in India, DMI has been an active participant in the revolution of the Indian textile industry as a trader, thought leader, and implementation partner.
India is the Textile and Apparel Manufacturing Powerhouse
Between 2017 and 2021, the Indian textile sector has seen a massive increase in international investment. India is the fifth largest exporter of textiles, including for home, fashion, and industrial use. Between April 2000 and March 2021, the textile fabric sector attracted around US$ 3.75 billion in foreign direct investment (FDI). And the sector employs around five crore people directly and more than six crore people indirectly through affiliated businesses. This makes the sector the second-largest employer in the country.
Looking at the emerging trends and textile innovations, we believe real growth is about to begin. Thanks to online trading applications like TEXchange, we will soon be the powerhouse of textile exports and consumption.
Reasons Why You Should Invest in a Textile Company in India?
The Government of India has imposed several laws and promotion measures to improve the face of the textile industry. For example, GOI has approved 100% FDI under the automatic approach.
The industry is working on several essential elements to help the industrial textile industry grow. For instance, the demand for PPE suits, eco-friendly fabrics, and other medical fabrics has grown due to the COVID-19 pandemic. The GOI has further aided the industry with infrastructure and finance to improve the technical textile sector.
India is a Growing Domestic Market
The apparel market’s CAGR is expected to increase by 10% (valued at USD 75 billion from 2019 to 2020) to USD 190 billion by 2026. 73% of the Indian textile market is powered by the apparel industry, in which men’s apparel account for the majority, followed by women and kids. It is also the fastest-growing segment in the country.
The country’s ever-growing population, international fashion exposure, demographic changes, and shift in customer taste worldwide directly link to the long-term demand of cotton buyers and sellers.
We have the largest raw material base comprising all types of natural and synthetic fiber, including cotton, wool, silk, jute, polyester filament, and polyester staple, acrylic, and viscose.
India has all levels of the textile value chain, from Fiber and Yarn to Fabric and Apparel.
The manufacturing cost in India is lower than in China and Vietnam. The power cost is lower than in Bangladesh, Vietnam, Kenya, and Myanmar.
The long tradition of top textile companies in India supports the availability of readymade infrastructure for production, manufacturing, and distribution.
India has the largest human resource pool in the world, primarily comprising English speaking youth population. This is an advantage for global textile companies setting up operations in India for sourcing and manufacturing.
India enjoys preferential market access to more than fifty countries under 15+ trade agreements.
Thanks to the stable and supportive Government of India, which has been instrumental to economic and political stability, we have friendly business policies for exports.
The Government of India’s Production-Linked Incentive (PLI) scheme is slowly being realized to make the textile manufacturing sector receptive, efficient, and competent globally. PLI has created a league for job creation and textile production, as well as grey cotton buyers and sellers, top textile companies in India exporting products, man-made fibers, and technical and medical textiles.
If you are a textile company in India looking for a breakthrough opportunity, contact our trading expert.
