GLOBAL ECONOMIC OUTLOOK 

The IMF projects global GDP growth to stabilize at 3.3% for both 2025 and 2026, a slight increase from 3.2% in 2024 but still below the historical average of 3.7% from 2000-2019. This stability masks significant divergences across economies:

Advanced Economies: Growth in these regions is expected to slightly increase from 1.6% in 2023 to 1.8% in 2025. The United States, in particular, is anticipated to lead with a growth projection of 2.7% due to robust consumer spending and investment, despite earlier concerns about policy tightening. However, Europe faces challenges with slower growth at around 1.0% for 2025, influenced by manufacturing weaknesses and political uncertainty.

Emerging Market and Developing Economies (EMDEs): These economies are projected to grow at a steady 4.2% in 2025, driven by countries like India, which shows resilience with strong domestic demand, and Brazil, where growth forecasts have been revised upwards due to private consumption and investment. However, China's growth is expected to decline to 4.5% in 2025, reflecting ongoing real estate market issues and policy adjustments.

Inflation Outlook

Global Inflation: Expected to decline to 4.2% in 2025 from higher levels in previous years, moving towards central bank targets, although the path varies significantly by region. Advanced economies might see inflation nearing their targets sooner, while many EMDEs will continue to grapple with higher inflation rates into 2026.

Service vs. Goods Inflation: Service sector inflation continues to be stubborn, complicating monetary policy normalization. This sector's inflation dynamics are particularly relevant as they directly impact consumer spending and economic activity.

Economic Growth by Region

•	United States: The U.S. economy is anticipated to continue its resilience with a projected growth rate of 2.7% in 2025, fueled by consumer spending, government infrastructure projects, and a buoyant labor market. However, this growth is tempered by concerns over potential policy shifts in monetary tightening or fiscal policy changes post-election.
•	Eurozone: Growth here is expected to be sluggish at around 1.0%, with Germany potentially lagging due to its heavy reliance on manufacturing and exports. France and Italy might see slightly better performances due to tourism and service sector recovery, but overall, the region struggles with energy costs, geopolitical tensions, and demographic challenges.
•	China: Economic growth is forecasted at 4.5%, marking a continued slowdown from previous years. The real estate sector remains a major drag, though government interventions aim to stabilize the market. Consumer confidence and export demand will be pivotal in determining growth trajectory.
•	India: Positioned as one of the fastest-growing major economies, India's growth is expected to hover around 6.5% in 2025, driven by digitalization, infrastructure development, and a burgeoning middle class. However, managing inflation and external sector vulnerabilities will be crucial.
•	Latin America: Brazil and Mexico are expected to lead with growth rates around 2.0% and 2.5% respectively, supported by internal demand. Nonetheless, political stability, commodity prices, and external debt levels will shape outcomes.
•	Sub-Saharan Africa: Despite potential growth around 3.8%, many nations here are grappling with debt sustainability, political instability, and climate-related challenges. Countries like Ethiopia and Nigeria, with reforms in place, might outpace regional averages.
•	Middle East and Central Asia: Oil-dependent economies benefit from stable oil prices, with growth rates projected at about 3.5%. Non-oil sectors are gradually diversifying economies, but geopolitical tensions and oil market volatility pose risks.
Risks and Uncertainties

Geopolitical Tensions and Trade Policies: The potential for new trade restrictions or tariffs, particularly from major economies like the U.S., could disrupt global trade. Recent posts on X highlight concerns about trade shifts affecting global stability.

Inflation and Monetary Policy: There's an increased risk of inflation if central banks pivot too quickly from tight policy, potentially leading to sustained higher interest rates or a policy misstep.

Fiscal Sustainability: The need for fiscal consolidation remains, especially with high debt levels in many countries. Balancing this with maintaining growth is a delicate act, with some regions facing more acute challenges.

Climate and Conflict Risks: Natural disasters and ongoing conflicts continue to pose significant risks to economic forecasts, particularly in regions like Sub-Saharan Africa and the Middle East.

INDIAN ECONOMIC OUTLOOK 
 
India's robust economic growth in the first quarter of FY23 enabled it to surpass the UK, securing its position as the fifth-largest economy, following a recovery from the impacts of the COVID-19 pandemic. The nominal GDP for Q1 2024-25 is projected to reach ₹77.31 lakh crores (approximately $928.9 billion), reflecting a growth rate of 9.7%, which is an increase from 8.5% in Q1 2023-24. For the fiscal year 2023-24, nominal GDP growth is estimated at 9.6%, down from 14.2% in 2022-23. This growth trajectory is driven by strong domestic consumption and investment demand, complemented by the government's continued focus on capital expenditure, which is anticipated to be a key factor supporting GDP in the latter half of FY24. From April to September 2025, India's exports reached $211.46 billion, with Engineering Goods (26.57%), Petroleum Products (16.51%), and electronic goods (7.39%) ranking as the top three export categories. The rise in employment and heightened private consumption, bolstered by improving consumer sentiment, is poised to further fuel GDP growth in the upcoming months.

Future government capital spending is projected to benefit from various factors, including increased tax revenues, an efficient tax system with low rates, a comprehensive review and rationalization of the tariff structure, and advancements in tax filing digitization. In the medium term, enhanced capital spending on infrastructure and asset-building initiatives is expected to amplify growth multipliers. The contact-based services sector shows potential for significant growth as it taps into pent-up demand, with several High-Frequency Indicators (HFIs) highlighting signs of recovery.

India has established itself as the world's fastest-growing major economy and is forecasted to become one of the top three economic powers within the next 10-15 years, bolstered by its strong democratic framework and solid international partnerships. In light of global uncertainty and volatility, India’s attractiveness as an investment destination has strengthened, as evidenced by record fundraising by India-focused investment funds in 2022, reflecting investor confidence in the "Invest in India" narrative.

 
Market Size

The Real GDP, or GDP at Constant (2011-12) Prices, for the period Q1 2024-25 is projected to be ₹43.64 lakh crore (approximately $524 billion), compared to the First Revised Estimates (FRE) of GDP for Q1 2023-24, which was ₹40.91 lakh crore ($491 billion). The estimated growth in real GDP for 2023-24 stands at 8.2%, an increase from 7.0% in 2022-23. India is home to 113 unicorn startups with a collective valuation exceeding $350 billion, and 14 tech startups are anticipated to go public in 2024, with the fintech sector expected to yield the greatest number of future unicorns. Currently, India ranks third globally in terms of unicorns.
The government is also prioritizing renewable energy by aiming to derive 40% of its energy from non-fossil sources by 2030 and is dedicated to achieving its Net Zero Emissions goal by 2070 through a five-pronged approach known as 'Panchamrit.' Additionally, India has secured the third position in the Renewable Energy Country Attractiveness Index.

According to the McKinsey Global Institute, India must enhance its employment growth rate and generate 90 million non-farm jobs from 2023 to 2030 to improve productivity and drive economic growth. To achieve a GDP growth of 8-8.5% during this period, the net employment rate needs to increase by 1.5% annually. India's current account deficit (CAD) has decreased to 0.7% of GDP in FY24, with the CAD reported at $9.7 billion for Q1 2024-25, down from $8.9 billion in Q1 2023-24, which represented 1.1% of GDP. This improvement is primarily attributed to a reduction in the merchandise trade deficit.

Exports performed exceptionally well during the pandemic, helping to stimulate recovery when other growth sectors were faltering in their contributions to GDP. However, the role of merchandise exports may fluctuate moving forward as various trade partners of India experience economic slowdowns. According to Mr. Piyush Goyal, the Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution, and Textiles, Indian exports are projected to reach $1 trillion by 2030.

Recent Developments

India primarily relies on domestic demand for its economic growth, with consumption and investment accounting for 70% of economic activity. As the economy recovers from the impacts of the COVID-19 pandemic and the overall economic landscape improves, various investments and advancements have occurred across different sectors. The World Bank emphasizes the need for India to focus on reducing inequality while implementing growth-oriented policies to further stimulate the economy. In light of this, several significant developments have taken place recently:

•	The HSBC Flash India PMI report indicates that business activity surged in April, reaching its highest level in nearly 14 years, driven by sustained robust demand. The composite index hit 62.2, reflecting continuous expansion since August 2021, along with noteworthy job growth and reduced input inflation, reinforcing India's position as the fastest-growing major economy.

•	As of October 11, 2024, India’s foreign exchange reserves stood at $690.43 billion.

•	In the first half of 2024, India attracted a total of $31.5 billion in private equity and venture capital investments.

•	India ranks 39th among 133 economies in the Global Innovation Index 2024, improving from its 81st position in 2015. Furthermore, the country is third globally in the number of scientific publications.

•	In September 2024, India's gross Goods and Services Tax (GST) revenue reached its highest monthly collection to date of ₹1.73 lakh crore (approximately $20.83 billion).

•	Cumulative foreign direct investment (FDI) equity inflows to India amounted to $1,013.45 billion from April 2000 to June 2024.

•	In August 2024, the overall Index of Industrial Production (IIP) was recorded at 145.6, with specific indices for the mining, manufacturing, and electricity sectors standing at 125.1, 147.1, and 219.3, respectively.

•	As per data from the Ministry of Statistics and Programme Implementation (MoSPI), the Consumer Price Index (CPI) based retail inflation in India reached a provisional rate of 5.49% for September 2024.

•	Between April and July 2023-24, Foreign Institutional Investors (FIIs) contributed inflows close to ₹80,500 crore (around $9.67 billion), while Domestic Institutional Investors (DIIs) sold ₹4,500 crore (approximately $540.56 million) during the same timeframe. According to depository data, Foreign Portfolio Investors (FPIs) invested $13.89 billion in India from January to July 15, 2024.

•	During the Rabi Marketing Season (RMS) 2024-25 (up to May), wheat procurement was estimated at 266 lakh metric tonnes (LMT), while rice procurement during the Kharif Marketing Season (KMS) 2024-25 reached 400 LMT.


Government Initiatives Summary

Over the years, the Indian government has introduced numerous initiatives to bolster the country's economy, effectively crafting policies and programs aimed at enhancing financial stability for citizens while also fostering overall economic growth. The significant rise in India's demand for exports has been accompanied by various flagship programs such as Make in India, Start-up India, Digital India, the Smart City Mission, and the Atal Mission for Rejuvenation and Urban Transformation, all aimed at creating substantial opportunities within the nation. Below are some recent government initiatives aimed at improving the country's economic conditions:

o	In July 2024, the Ministry of Finance presented the Union Budget, estimating total receipts (excluding borrowings) at ₹32.07 lakh crore ($383.93 billion) and total expenditure at ₹48.21 lakh crore ($577.16 billion) for 2024-25.
o	The Finance Ministry announced in February 2024 that the total expenditure for Interim 2024-25 was projected at ₹47.65 lakh crore ($571.64 billion), with capital expenditure accounting for ₹11.11 lakh crore ($133.27 billion).
o	On January 22, 2024, Prime Minister Narendra Modi launched the 'Pradhan Mantri Suryodaya Yojana,' which aims to provide rooftop solar installations for one crore households.
o	Prime Minister Modi unveiled the PMVISHWAKARMA scheme on September 17, 2023, to support traditional artisans and craftsmen by enhancing the quality and reach of their products and integrating them into MSME value chains.
o	The Amrit Bharat Station Scheme, launched on August 6, 2023, focuses on the continuous development and revitalization of 1,309 railway stations across the country.
o	The Ministry of Environment, Forests, and Climate Change introduced the Draft Carbon Credit Trading Scheme, 2023, on June 28, 2023.
o	The Foreign Trade Policy 2023 was implemented on April 1, 2023, to support the 'Aatmanirbhar Bharat' philosophy and promote local products in global markets.
o	To strengthen India's manufacturing sector through increased investment, the Production-Linked Incentive (PLI) Scheme was launched for pharmaceuticals.
o	The Prime Minister’s Development Initiative for North-East Region (PM-DevINE) was introduced in the Union Budget 2022-23, with a financial outlay of ₹1,500 crore ($182.35 million).
o	In January 2023, the Pradhan Mantri Garib Kalyan Ann Yojana (PMGKAY) was announced to provide free food grains to beneficiaries of the Antyodaya Ann Yojana (AAY) and Primary Household (PHH) schemes.
o	The Credit Guarantee Scheme for Start-ups (CGSS) was launched to provide credit guarantees for start-ups, facilitating loans through various financial institutions starting from October 7, 2022.
o	The Telecom Technology Development Fund (TTDF) Scheme was initiated in October 2022 to support R&D in rural-specific communication technologies.
o	Various other initiatives focused on sustainable development, infrastructure growth, and job creation include the Agnipath Scheme, reforms in the telecom sector, and support for women’s empowerment.
o	India has also pursued international partnerships and trade agreements, including proposed Free Trade Agreements (FTAs) that unlock business opportunities and enhance job creation.
o	Programs aimed at increased public health spending, renewable energy initiatives, and support for technology-driven sectors demonstrate the government's commitment to holistic economic development.
Road Ahead

In the second quarter of FY24, India maintained the growth momentum established in the first quarter, with High-Frequency Indicators (HFIs) showing favorable performance in July and August 2023. The nation's robust position in the external sector reflects a positive economic outlook and increasing employment rates. Notably, India ranked fifth globally in foreign direct investment inflows among both developed and developing nations during the first quarter of 2022.

The first half of FY24 showcased the government's strong commitment to capital expenditure, which increased by 37.4% compared to the same period last year. In the Union Budget for 2024-25, the capital expenditure outlay was raised by 17.1%, reaching ₹11 lakh crore ($133.51 billion) from ₹9.48 lakh crore ($113.91 billion) in 2023-24. The rise in capital spending was also bolstered by improved tax compliance, enhanced corporate profitability, and heightened economic activity.

Despite challenges posed by the global pandemic, India is demonstrating resilient growth. Merchandise exports saw a year-over-year increase of 8.39%, while service exports rose by 29.82% until April 2023.

Improvements in port congestion indicate the restoration of supply chains. The easing of CPI-C inflation, which dropped from 7.01% in June 2022 to 5.02% in September 2023 (provisional), is a reflection of these developments. With proactive administrative measures from the government, a flexible monetary policy, and declining global commodity prices—along with alleviated supply-chain issues—overall inflationary pressures in India appear to be diminishing.

GLOBAL APPAREL MARKET

Market Size and Growth Projections

•	The global apparel market is projected to grow significantly in the coming years. In 2025, the market size is estimated to be valued at approximately USD 1.84 trillion, accounting for 1.63% of the world's GDP. This growth is expected to continue, with the market reaching USD 2 trillion by 2028. The compound annual growth rate (CAGR) for the apparel market during the forecast period (2025-2030) is projected to be around 4.63%
 
Major Trends and Drivers

Several key trends and drivers are shaping the global apparel market:

•	E-Commerce and Digital Transformation: The rise of e-commerce has revolutionized the apparel market, providing consumers with convenient access to a wide range of products. Online sales are expected to continue growing, driven by advancements in technology, improved logistics, and the increasing use of smartphones and internet penetration

•	Sustainability and Ethical Fashion: Consumers are becoming more conscious of the environmental and social impact of their purchases. This has led to a growing demand for sustainable and ethically produced apparel. Brands are increasingly adopting eco-friendly materials, reducing waste, and ensuring fair labor practices to meet this demand

•	Technological Innovations: The integration of advanced technologies such as artificial intelligence (AI), blockchain, and the Internet of Things (IoT) is transforming the apparel industry. AI is being used to predict trends, personalize shopping experiences, and optimize supply chains. Blockchain technology is enhancing transparency and traceability in the supply chain, while IoT is enabling smart clothing and connected wearables

•	Customization and Personalization: Consumers are seeking unique and personalized products that reflect their individual style and preferences. Brands are leveraging data analytics and AI to offer customized recommendations and tailor-made products, enhancing customer satisfaction and loyalty

•	Athleisure and Activewear: The popularity of athleisure and activewear continues to rise, driven by the growing focus on health and wellness. Consumers are increasingly opting for comfortable and versatile clothing that can be worn for both athletic activities and casual occasions.
Challenges and Opportunities

The global apparel market faces several challenges, including supply chain disruptions, changing consumer preferences, and increasing competition. However, these challenges also present opportunities for innovation and growth.

•	Supply Chain Disruptions: The COVID-19 pandemic highlighted the vulnerabilities in global supply chains, leading to delays and disruptions in production and distribution. Brands are now focusing on building more resilient and flexible supply chains, leveraging technology to enhance visibility and efficiency.

•	Changing Consumer Preferences: The shift towards sustainable and ethical fashion is driving brands to adopt eco-friendly practices and materials. This presents an opportunity for brands to differentiate themselves and build a loyal customer base by aligning with consumer values.

•	Increasing Competition: The apparel market is highly competitive, with numerous brands vying for market share. To stay ahead, brands need to continuously innovate, offer unique and high-quality products, and provide exceptional customer experiences.

•	Technological Advancements: The adoption of advanced technologies such as AI, blockchain, and IoT presents significant opportunities for brands to enhance their operations, improve customer engagement, and drive growth. Brands that effectively leverage these technologies will be well-positioned to succeed in the evolving market.
(Sources: https://www.statista.com/outlook/cmo/apparel/worldwide, https://www.thebusinessresearchcompany.com/report/apparel-global-market-report, https://www.uniformmarket.com/statistics/global-apparel-industry-statistics, https://www.globalmarketstatistics.com/market-reports/apparel-market-11259, https://www.mordorintelligence.com/industry-reports/apparel-market)

INDIA TEXTILE MARKET

India has established itself as the second-largest manufacturer of personal protective equipment (PPE) globally, with projections indicating that the market could surpass US$ 92.5 billion by 2025, up from US$ 52.7 billion in 2019. As the world's second-largest producer of textiles and garments, India also ranks as the fifth-largest exporter in this sector, which includes apparel, home textiles, and technical products. The textiles and apparel industry contributes 2.3% to India's GDP, 13% to its industrial production, and 10.5% to its exports. It is anticipated that the industry's GDP contribution could double to approximately 5% by the end of this decade. Currently, India holds a 4.6% share of the global textile and apparel trade and is the third-largest exporter worldwide, ranking among the top five exporters in various textile categories. For the first quarter of FY25 (April-June), exports of ready-made garments and accessories reached US$ 2,244 million. The textile sector is set to play a crucial role, with a goal of achieving US$ 100 billion in exports by FY30, an increase from US$ 34.43 billion in FY24. Employing around 45 million people, including 3.5 million in handloom operations, the textile industry in India has been demonstrating a steady recovery post-pandemic, as evidenced by a Manufacturing of Textiles Index of 106 for June 2024. The global apparel market is projected to grow at a CAGR of approximately 8%, reaching US$ 2.37 trillion by 2030, while the global textile and apparel trade is expected to grow at a 4% CAGR, hitting US$ 1.2 trillion by 2030. In contrast, the Indian textiles and apparel market is projected to expand at a 10% CAGR, potentially reaching US$ 350 billion by 2030, with exports aiming for US$ 100 billion. The technical textiles industry shows promising growth prospects, with market size projections of US$ 309 billion by 2047. Additionally, the Indian technical textile market is positioned for substantial growth at a rate of 10%, with penetration levels between 9-10%, making it the fifth-largest such market globally. The sportech segment of India's textile industry is estimated at US$ 1.17 million for 2022-23, while the market for Indian medical textiles, specifically drapes and gowns, reached approximately US$ 9.71 million in 2022, with an expected growth of 15% to US$ 22.45 million by 2027. Furthermore, the Indian composites market is projected to achieve a value of US$ 1.9 billion by 2026, with a CAGR of 16.3% from 2021 to 2026, and consumption of composite materials anticipated to reach 768,200 tonnes by 2027. India benefits from comparative advantages in skilled labor and production costs compared to other major textile producers. During FY24, the total textile exports, including handicrafts, amounted to US$ 35.9 billion, with readymade garments and accessories accounting for US$ 14.23 billion. Notably, textiles exports to the US, India's largest market, constituted 32.7% of total export value in FY24. Projections suggest that India’s Ready-Made Garment (RMG) exports will exceed US$ 30 billion by 2027, growing at a CAGR of 12-13%. Between April and June 2023-24, exports of 247 technical textile items totaled Rs. 5,946 crore (US$ 715.48 million). Moreover, India is the largest producer of cotton globally, with the Agriculture Ministry estimating cotton output for 2023-24 at 32.3 million bales.

 


Evolution of the Indian textile sector

India's textile journey is marked by significant milestones over the years. In 1854, the first cotton textile mill was established in Mumbai, setting the foundation for the sector. Ahmedabad followed suit with its first cotton mill in 1861, emerging as a competitive rival to Mumbai. The industry boomed, with the number of mills increasing from 178 in 1901 to 417 by 1945. After the partition in 1947, India retained 409 out of the 423 textile mills in undivided India, while Pakistan received 14.

In 1999, the Technology Upgradation Fund Scheme (TUFS) was introduced to enhance access to capital for technological advancements in the sector. The Textile Mission for Cotton (TMC) was launched to combat low productivity and infrastructure challenges. By 2000, the National Textile Policy (NTP) was announced to foster comprehensive development in the textile and apparel industry.

The Scheme for Integrated Textile Park (SITP) was implemented to facilitate the establishment of textile units supported by adequate infrastructure. Following the end of the Multi-Fibre Arrangement (MFA), cotton prices became aligned with global markets, paving the way for potential growth in the technical textile industry. Ongoing discussions for free trade agreements with ASEAN countries and a proposed agreement with the EU indicated a move toward expanded trade.

In subsequent years, a restructured TUFS was reintroduced, providing a subsidy cap of $420.65 million to incentivize investments. The "Make in India" campaign was launched to attract manufacturers and foreign direct investment (FDI). The Technology Mission for Technical Textiles continued its focus, while the Mega Integrated Textile Region and Apparel (MITRA) Park scheme was unveiled to develop seven textile parks, equipped with state-of-the-art infrastructure, common utilities, and research and development labs over a three-year timeline, reflecting India’s commitment to advancing its textile industry.

India's textile industry boasts a robust production base, encompassing a diverse array of fibers and yarns, from natural sources such as cotton, jute, silk, and wool to synthetic fibers like polyester, viscose, nylon, and acrylic. In 2022, the textiles sector accounted for 7% of the overall industry output by value. Furthermore, in the fiscal year 2024, the textiles and apparel sector contributed 2.3% to the nation's GDP and comprised 10.5% of export earnings.
 
Advantage to India

1.	Competitive Advantage
India's textile industry benefits from an abundant supply of raw materials such as cotton, wool, silk, and jute. The country also has a competitive edge due to its skilled workforce and lower production costs compared to other leading textile producers. In July 2022, the Commerce and Industry Minister, Mr. Piyush Goyal, emphasized that the "5 F's" mantra—Farms, Fibre, Fabric, Fashion, and foreign export—aims to establish India as a formidable global textile brand.

2.	Policy Support
India allows 100% Foreign Direct Investment (FDI) through the automatic route in its textile sector. In the Union Budget for 2023-24, the government allocated ₹4,389.24 crore (approximately US$ 536.4 million) to this sector. Plans are underway to establish 12 new industrial parks and 5-6 mega textile parks, a move highlighted by Commerce and Industry Minister Mr. Piyush Goyal, who also encouraged the private sector to take advantage of these opportunities. Additionally, in July 2023, 43 new partners were added to the SAMARTH scheme, with a target to train around 75,000 beneficiaries. To date, 183,844 individuals have been trained across 1,880 centers under this initiative.

3.	Increasing Investments
To draw in private equity and create more job opportunities, the Indian government has launched several initiatives, including the Scheme for Integrated Textile Parks (SITP), the Technology Upgradation Fund Scheme (TUFS), and the Mega Integrated Textile Region and Apparel (MITRA) Park scheme. From April 2000 to March 2024, the textiles sector attracted total Foreign Direct Investment (FDI) inflows amounting to US$ 4.47 billion.

4.	Robust Demand
India's textiles sector, supported by a robust policy framework, recorded an 11% year-on-year growth in ready-made garment exports in August 2024 and is anticipated to reach a value of US$ 350 billion by 2030. The technical textiles market in India is projected to grow to US$ 23.3 billion by 2027, fueled by rising consumer awareness and increased disposable incomes. Cotton production is also expected to rise to 7.2 million tonnes (approximately 43 million bales of 170 kg each) by 2030, driven by growing consumer demand. In FY25 (April-June), ready-made garment exports, including accessories, totaled US$ 2,244 million, with expectations to exceed US$ 30 billion by 2027, capturing an estimated 4.6-4.9% share of the global market.

Export
	Textiles exports from India during October were about 11.56% higher on YoY basis at US$ 1,833.95 million.
	Apparel exports from India during October were about 35.06% higher on YoY basis at US$ 1,277.44 million.
	India's textile industry is on the brink of expansion, with total textile export projected to reach US$ 65 billion by FY26.
	In FY25 (April- June) the total exports of textiles stood at US$ 9.17 billion.
	Exports of textiles (RMG of all textiles, cotton yarns/fabs./made-ups/handloom products, man-made yarns/fabs./made-ups, handicrafts excl. handmade carpets, carpets and jute mfg. including floor coverings) stood at US$ 9.17 billion in FY25 (April-June).
	India’s ready-made garment (RMG) exports are likely to surpass US$ 30 billion by 2027, growing at a CAGR of 12-13%.
	In July 2021, the government extended the Rebate of State and Central Taxes and Levies (RoSCTL) scheme for exports of apparel/garments and made-ups until March 2021. This helped boost exports and enhance competitiveness in the labour-intensive textiles sector.
	In August 2021, Minister of Textiles, Commerce and Industry, Consumer Affairs, Food and Public Distribution, Mr. Piyush Goyal, said that steps need to be taken to boost production capacities of the handloom sector from existing Rs. 60,000 crore (US$ 8.06 billion) to 125,000 crore (US$ 16.80 billion) in three years. He added that target must be set to increase exports of handloom items from existing Rs. 2,500 crore (US$ 335.92 million) to Rs. 10,000 crore (US$ 1.34 billion). He also announced that a committee would be constituted consisting of all weavers, trainer equipment makers, marketing experts and other stakeholders to recommend ways and means to achieve these objectives and enhance overall progress of the handloom sector.
 
Technical Textile Industry

The technical textile industry is poised for significant growth, with projections indicating a global market size of US$ 309 billion by 2047 and a robust CAGR of 16.05%. In India, the sector is classified into 12 categories including Agrotech, Meditech, and Sportech, highlighting its diverse applications. Driven by key sectors such as healthcare and infrastructure, the Indian market is already the fifth largest globally, with an anticipated growth rate of 10% and increased penetration levels of 9-10%. The Indian government is actively fostering innovation and development by sanctioning research projects worth approximately Rs. 21 crore (US$ 2.52 million) under the National Technical Textiles Mission, along with the approval of 74 additional research proposals valued at US$ 28.27 million (Rs. 232 crore). Initiatives like the introduction of 207 Harmonized System Nomenclature (HSN) codes and a uniform 12% GST rate on manmade fabrics further promote the industry. Educational institutions are also adapting to market needs by offering specialized courses in technical textiles, ensuring that skills development keeps pace with industry advancements. With a dedicated corpus of Rs. 1,000 crore (US$ 127.72 million) for R&D and significant export performance, the potential for innovation and growth in the technical textiles sector is immense.

Recent Trends in Textile:

1.	Textile Parks Development: Since 2014, a total of 59 textile park projects have been approved under the Scheme for Integrated Textile Parks (SITP) and Public-Private Partnerships (PPP), with government funding covering 40% of costs, up to Rs. 40 crore (around US$ 6 million). As of July 2021, 24 of these parks are operational. Recently, in August 2023, the government authorized seven PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks, which will feature premium infrastructure and plug-and-play facilities, funded by an investment of Rs. 4,445 crore (US$ 535 million) over the next seven years until 2027-28.
2.	Entrepreneurial Support in Apparel Manufacturing: The government has initiated measures to foster entrepreneurship in the apparel sector by providing integrated workspaces, which help lower operational and financial barriers for new businesses. By July 2019, three projects aimed at this goal had been sanctioned in Madhya Pradesh, Odisha, and Haryana.
3.	Growth in Technical Textiles: The Ministry of Textiles recently approved 26 engineering institutions for the introduction of Technical Textiles as part of the National Technical Textiles Mission in August 2023. The sector exhibits strong potential, with a notable growth rate of 10%, positioning India as the fifth-largest market globally. Forecasts indicate that the automotive textiles market could grow to US$ 3.7 billion by 2027, while the industrial textiles market is expected to rise from US$ 2 billion in 2020 to US$ 3.3 billion within the same timeframe.
4.	Khadi Promotion Initiatives: The Khadi and Village Industries Commission (KVIC) has taken strides to promote Khadi products, signing three MoUs in September 2023. In January 2023, a major Khadi Fashion Show showcased this traditional textile, in line with Prime Minister Narendra Modi's vision of “Khadi for Nation, Khadi for Fashion, and Khadi for Transformation.” Additionally, KVIC reported a turnover of Rs. 1.15 lakh crore (US$ 14.68 billion) for FY22, marking a significant 20.54% year-on-year growth.
5.	Public-Private Partnerships (PPP): The Ministry of Textiles has initiated programs to set up institutes through PPP models, encouraging active private sector participation in the textiles industry. An important partnership emerged in August 2021 when Flipkart collaborated with the Himachal Pradesh State Handicrafts and Handloom Corporation to assist local artisans and weavers in showcasing their products on e-commerce platforms.
6.	Expansion and Diversification Strategies: Grasim Industries plans to open approximately 120 retail outlets within the next two years, targeting smaller cities and towns to broaden its footprint. Additionally, the luxury menswear brand Brioni, under the DS Group, inaugurated its first boutique in India in November 2023, reflecting a trend of diversification in the fashion sector.
7.	Investment in Research and Development (R&D): The government approved R&D projects valued at US$ 7.4 million (Rs. 61.09 crore) in June 2023 for the textile industry. This funding will support 20 projects under the National Technical Textiles Mission, focusing on various applications like sustainable textiles, geo-textiles, and sports textiles, among others.
8.	Focus on Domestic Market Growth: In November 2022, the Chief Minister of Tamil Nadu announced plans for a "Textile City" in Chennai, emphasizing the state’s ambition to become a key player in the global textile market. Furthermore, plans to establish 75 textile hubs across India aim to enhance exports and create substantial employment opportunities while promoting sustainable technology.
9.	Backward Integration Efforts: The Khadi and Village Industries Commission inaugurated its first specialized footwear training center in Delhi in July 2020, aimed at upskilling marginalized leather artisans. This initiative underscores the commitment to improving livelihoods and enhancing skill sets in the artisanal sector.
10.	Forward Integration Initiatives: The textile sector is seeing forward integration as companies seek strategic partnerships to broaden their capabilities. For instance, Asahi Songwon Colors Limited entered a joint venture to establish a state-of-the-art pigments plant, while Flipkart’s investment in Arvind Youth Brands reflects an effort to strengthen market positioning.
11.	Advancement of Organic Cotton Cultivation: India is set to host the 81st Plenary Meeting of the International Cotton Advisory Committee (ICAC) in December 2023, focusing on innovations within the cotton value chain. Additionally, initiatives like the Cott-Ally mobile app aim to enhance farmers' awareness of market support prices and best practices, contributing to improved yields.
12.	Sustainable Textile Innovations: Recent agreements focus on promoting the use of upcycled products from textile waste, aiming for sustainable practices in the industry. Collaborations such as that between Arvind Limited and PurFi Global LLC aim to repurpose textile waste, significantly reducing landfill contributions. Furthermore, initiatives like the Sustainable Textiles for Sustainable Development (SusTex) project enhance employment for textile artisans while promoting eco-friendly textiles.
Growth Drivers

Rising Incomes and a Growing Middle-Class

India's burgeoning middle class is driving considerable growth in industrial design applications, which have surged by 36.4%, particularly in sectors such as textiles, accessories, tools, machines, health, and cosmetics. This upward trend in domestic demand is primarily attributed to increasing incomes, which are expected to rise substantially; projections indicate that India's per capita income will grow nearly 70%, reaching around US$ 4,000 by FY 2030 from US$ 2,450 in fiscal 2023. This increase in income is not limited to urban areas, as the rural economy is also experiencing similar upward momentum. The anticipated growth in industrial activity will further support this rising income trajectory, cementing domestic demand in the sector for the foreseeable future.

Exporters Gaining from Strong Global Demand

As a result of shifting global sourcing trends, Indian apparel exporters are poised to achieve a revenue growth of 9-11% in FY25. This is being fueled by a gradual reduction in retail inventory and an increased focus on sourcing from India, the world’s second-largest textile exporter. India’s capacity built over the years has resulted in a low cost of production per unit, giving Indian textile exporters a substantial competitive advantage over their global peers. In FY24, India's total textile exports reached an impressive US$ 35.9 billion, indicating the sector's robust performance. Additionally, the Indian Medical Textiles market is projected to grow significantly, with expectations of reaching US$ 22.45 million by 2027, while the composites market is set to achieve an estimated value of US$ 1.9 billion by 2026 at a CAGR of 16.3%. Notably, in July, India reported a 4.73% growth in textile and apparel exports, totaling US$ 2,937.56 million, with strong demand from key markets like the United States, European Union, and United Kingdom. The Confederation of Indian Textile Industry (CITI) anticipates continued expansion in this sector in the coming months, and regions like Africa and Latin America are expected to emerge as crucial markets for sustaining this growth.

Textile SEZS in India

Mahindra City SEZ (Functional)	Tamil Nadu	607.1	Apparel and fashion accessories	Mahindra City is India’s first integrated business city, divided into business and lifestyle zones. It is a cluster of 3 sector specific SEZs in Tamil Nadu, for apparels and fashion accessories; IT and hardware; and auto ancillary. The business zone provides plug-n-play working spaces. This zone comprises a SEZ (primarily for exporters) and Domestic Tariff Area (DTA) for companies targeting domestic market.
Surat Apparel Park (Functional)	Gujarat	56	Textiles	Key industrial units include Safari Exports, Venus Garments, Benchmark Clothings, P. K. International, Tormal Prints, J.R. Fashion and Ganga Export.
Brandix India Apparel City (BIAC) (Functional)	Andhra Pradesh	404.7	Textiles	BIAC is an integrated apparel supply chain city, managed by Brandix Lanka Ltd. It aims to be an end-to-end apparel solution provider.
(KIADB) (Functional)	Karnataka	16,129.0	Several sectors	Karnataka Industrial Areas Development Board (KIADB) is a wholly owned infrastructure agency of Government of Karnataka. Till date, KIADB has formed 132 industrial areas spread all over the state.

Key textiles and apparel zones in India

 

Policy support

Scheme for Capacity Building in Textiles Sector (SCBTS)

The Government of India has introduced the 'Scheme for Capacity Building in Textile Sector (SCBTS)' with an allocation of Rs. 1,300 crore (US$ 202.9 million) for FY18-20, aimed at developing a demand-driven, placement-oriented skill development program to generate job opportunities in the organized textile sector. The initiative also focuses on skill enhancement in traditional textile sectors to foster overall growth and employment in the industry.

Government Incentives

The Indian government is actively promoting the textiles sector through various initiatives, including a tripartite MoU to support upcycled products made from textile waste. The establishment of new campuses for the National Institute of Fashion Technology (NIFT) and the approval of 74 research projects under the National Technical Textile Mission (NTTM) further bolster the sector's development. Additionally, the Handloom Export Promotion Council (HEPC) facilitates participation in international fairs to enhance global sales of handloom products, while the Handloom Marketing Assistance (HMA) program aids weavers in marketing their products. Notable projects, such as the ONGC-supported 'Ujjwal Abahan' in Assam, aim to train and support local artisans in traditional handicrafts, contributing to the overall growth and sustainability of the textiles landscape in India.

Policy Support Key Ingredients:

1.	Amended Technology Upgradation Fund Scheme (A-TUFS): The government allocated Rs. 17,822 crore (US$ 2.38 billion) between FY16 and FY22 to boost the textile industry. Special campaigns were held to settle backlog cases, distributing US$ 75.74 million in subsidies across 3,159 cases.
2.	National Textile Policy - 2000: Focuses on technological upgrades, productivity enhancement, product diversification, and financing arrangements. The new draft aims to create employment for 35 million people by attracting foreign investment and establishing modern apparel manufacturing centers in every state in the Northeast.
3.	Foreign Direct Investment (FDI): Up to 100% FDI is allowed in the textile sector through the automatic route, encouraging foreign investment and collaboration with global majors.
4.	SAATHI Scheme: Launched to revive the power loom sector by promoting the adoption of efficient textile technologies among small industries.
5.	Merchandise Exports from India Scheme (MEIS): Revised rates for incentives under MEIS for readymade garments and made-ups from 2% to 4%, boosting exports.
6.	Scheme for Capacity Building in Textiles Sector (SCBTS): Approved with an outlay of Rs. 1,300 crore (US$ 202.9 million) to provide demand-driven and placement-oriented skilling programs, creating jobs in the organized textile sector.
7.	Government Incentives: Various initiatives including the promotion of upcycled products, establishment of new NIFT campuses, and participation in international fairs to boost exports and enhance competitiveness.
8.	SAMARTH Scheme: Empanelled 43 new implementing partners in July 2023, targeting the training of 75,000 beneficiaries. A total of 1,83,844 beneficiaries have been trained across 1,880 centers.
9.	Production-Linked Incentive (PLI) Scheme: Approved Rs. 10,683 crore (US$ 1.44 billion) for man-made fiber and technical textiles, providing incentives for manufacturing and exporting specific textile products.
10.	Mega Integrated Textile Region and Apparel (MITRA) Parks Scheme: Establishment of seven PM MITRA Parks with a total investment of US$ 541.82 million (Rs. 4,445 crore) to create state-of-the-art infrastructure and common utilities.
11.	National Technical Textiles Mission (NTTM): 
The National Technical Textiles Mission (NTTM) was launched by the Ministry of Textiles, Government of India, with the objective of positioning India as a global leader in technical textiles. The mission aims to promote research, development, and innovation in the technical textiles sector.
i.	Research and Development (R&D):
•	The mission focuses on promoting R&D in the technical textiles sector. As of February 2024, 137 research projects have been approved under NTTM, with a total cost of US$ 57.33 million (Rs. 474.7 crore) 
•	The mission encourages the development of new technical textile products and technologies through collaborative research involving academic institutions, industry, and government agencies.
ii.	Market Development:
•	NTTM aims to enhance the market for technical textiles by promoting their usage in various sectors such as agriculture, healthcare, infrastructure, automotive, and sports.
•	The mission includes initiatives to increase awareness about the benefits and applications of technical textiles among potential users and stakeholders.
iii.	Skill Development:
•	The mission emphasizes the importance of skill development and training in the technical textiles sector. It includes programs to train workers, technicians, and professionals in the latest technologies and practices related to technical textiles.
•	The Ministry of Textiles has approved 26 engineering institutions for the introduction of technical textiles under the National Technical Textiles Mission 
iv.	Standardization and Regulatory Framework:
•	NTTM aims to establish a robust standardization and regulatory framework for technical textiles to ensure quality and safety.
•	The mission includes the development of standards and guidelines for technical textiles products and processes, in collaboration with national and international standard-setting bodies.
v.	Promotion of Technical Textiles:
•	The mission includes initiatives to promote the use of technical textiles in various government and private sector projects.
•	It aims to increase the penetration of technical textiles in domestic and international markets through targeted marketing and promotional activities.
vi.	Infrastructure Development:
•	NTTM supports the development of infrastructure for the production and testing of technical textiles. This includes the establishment of testing laboratories, incubation centers, and demonstration facilities.
•	The mission also includes the creation of Centers of Excellence (CoEs) for technical textiles, which will serve as hubs for research, innovation, and training.
Foreign investment

India's textiles sector allows for 100% Foreign Direct Investment (FDI), and between April 2000 and March 2024, the cumulative FDI inflows in this industry, which includes dyed and printed textiles, reached US$ 4.47 billion. This sector is witnessing a notable surge in collaboration between international companies and domestic players. Renowned global apparel brands such as Hugo Boss, Liz Claiborne, Diesel, and Kanz have already commenced their operations in India. Additionally, in April 2021, Youngone, a prominent South Korean textile company, announced its plans to begin operations within six months at the Kakatiya Mega Textile Park in Warangal, which is expected to create employment opportunities for 12,000 individuals in the region.
Opportunities
1. Immense Growth Potential
In September 2023, Shadowfax launched a new fulfilment center in Surat, spanning 150,000 square feet and capable of processing up to 1 million orders daily. The Indian textile sector is poised for substantial growth due to robust domestic demand and increasing export opportunities. Projections indicate that the textile and apparel industry is expected to reach a market size of $190 billion by FY26.
2. Silk Production
The total raw silk output reached 28,106 metric tons, with 44 research and development initiatives initiated, of which 23 successfully concluded. Approximately 9,777 individuals received training in various aspects of the silk industry. The Central Silk Board has established targets for raw silk production and is promoting collaboration with farmers and private enterprises to enhance silk cultivation, particularly by engaging agro-based industries in both pre-cocoon and post-cocoon phases. For reference, raw silk production was recorded at 33,000 metric tons in FY21.
3. Bilateral Relations
In October 2021, the Ministry of Textiles partnered with GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit) through a memorandum of understanding to launch the 'Indo German Technical Cooperation' project, intended to boost the value addition from sustainable cotton production in India. Furthermore, in March 2021, Pakistan recommenced imports of cotton and sugar from India, suggesting a thaw in bilateral ties. Industry organizations are preparing for Bharat Tex 2024, scheduled for February 26-29, 2024, in New Delhi, which, according to Union Minister Piyush Goyal, reflects India's aspirations to become a leader in global textiles.
4. Proposed FDI in Multi-brand Retail
The proposed increase in the foreign direct investment (FDI) limit for multi-brand retail within the textile sector is expected to introduce new market players, providing consumers with a wider array of choices. Additionally, this change is anticipated to drive investment across the entire value chain, from agricultural production to the final product manufacturing stage. This assures global retail brands of a presence in the domestic market, which is likely to lead to a significant rise in outsourcing activities.
5. Union Budget 2023-24
In the Union Budget for 2023-24, the government has earmarked ₹4,389.24 crore (approximately $536.4 million) for the Ministry of Textiles, which includes ₹900 crore ($109.99 million) allocated to the Amended Technology Upgradation Fund Scheme (ATUFS), ₹60 crore ($7.33 million) for the Integrated Processing Development Scheme, and ₹450 crore ($54.99 million) dedicated to the National Technical Textiles Mission.
6. Centers of Excellence (CoE) for Research and Technical Training
The Centers of Excellence (CoEs) are designed to enhance testing and evaluation capabilities while establishing resource and training centers. The existing four CoEs—BTRA for Geotech, SITRA for Meditech, NITRA for Protech, and SASMIRA for Agrotech—will undergo upgrades to foster incubation centers and support prototype development. Financial assistance will be provided to engage experts responsible for creating these enhanced facilities.
7. Foreign Investments
The government is actively working to draw foreign investment into the textile sector through promotional visits to countries such as Japan, Germany, Italy, and France. As outlined in the new Draft of the National Textile Policy, initiatives are being undertaken to attract foreign capital and create employment opportunities for approximately 35 million individuals. India is positioning itself as the preferred sourcing hub for companies from the Association of Southeast Asian Nations (ASEAN), highlighting various investment opportunities within the textile manufacturing space.

Find abbreviation with full form in table form from above