India’s textiles and apparel industry can be subdivided into two categories: yarn and fiber, and processed fabrics and apparel. Due to India’s large manufacturing, raw material base, and huge labor force totaling to 35 million, it is able to make great contributions to the country’s GDP. The apparel sector of the textiles industry contributes 4% to India’s GDP. The domestic textile and apparel industry is predicted to reach about $141 billion by 2021, a substantial increase from $67 billion in 2014. India’s apparel exports are also expected to reach $65 billion by 2017 and $82 billion by 2021.
Readymade garments continue to dominate the majority of India’s apparel exports. In 2015, readymade garments composed 40% of all textile and apparel exports. India’s apparel is largely exported to the United States, the Middle East, Asia, and the European Union. The increasing governmental focus and creation of favorable policies have helped in aiding the growth of the textiles and clothing industry. In 2015, foreign direct investment (FDI) in the textile sector increased to $ 1.58 billion.
Many companies over the years have opened up apparel stores in India. America-based Aéropostale, Inc. made a licensing agreement with Arvind Lifestyle Brands Ltd. allowing Aéropostale to open 30 stores and 25 in-shop locations over the next three years. Spanish-based Zara created a joint venture with Indian retailer Trent allowing them to open their first store in India in 2010. Now Zara has 16 stores across the country and has planned to bring its higher-end label Massimo Dutti to India through another joint venture.
Last updated: August 6th, 2016
