Evolution of Textile Industry in India

Textile Industry

Textile Industry deals with the designing, manufacturing, distribution of natural fibres as well as synthetic fibres such as cotton, wool, polyesters and spandex. This sector plays the important role in Indian economy by generating 35 million jobs. India is one of the largest raw material and textile manufacturing hub. It contributes 4% in GDP of India. It comes 2nd after the China in production of cotton fabric and comes 5th in synthetic fibre production.

Textile industry has evolved with the technology advancements, Industrial revolution came with new wheels, spinning process, looms which changed the method of textile manufacturing. The First factory was formed by the US in 19th century.

Indian textile Industry comprise of following sub-industries:-

  • Small-scale
  • Spinning
  • Weaving & finishing
  • Apparel-making sector


It is the process of turning cotton or manmade raw materials into yarn which can be used for manufacturing the clothing. It plays the significant role in the Indian textile industry. It has 1146 small firms, 1599 larger firms for the spinning.


This is the process of yarn to knitted fabrics, in India this sector consist of 3.9 million handlooms, 380,000 power loom forms.

Finishing of fabrics:-

It includes dyeing, printing, colouring, other preparation for final cloth preparation. There are more than 2300 processors operating in the country. 2100 individual fabric finishing companies are there.


Government initiative for growth of textile sector:-

  • Advance Authorisation Scheme launched by the government under foreign trade policy to allow duty free import of raw materials required to manufacture export goods.
  • Technology Mission on Cotton
  • Establishment of Apparel Training and Design Centres
  • Technology Upgradation fund Scheme
  • Formation of two design centres in Gujarat with National Institute of Fashion Technology (NIFT).
  • 100 per cent Foreign Direct Investment for textile sector
  • Establishment of a Handloom Plaza in Ahmedabad with an estimated investment of US$ 24.6 million,
  • Setting up a handloom mall at Jehangir Mill in Ahmedabad,
  • Under EPCG Scheme exporters can import capital goods without paying any custom duties

Strength of textile sector:-

  • India is the rich source of cotton, polyester, silk, viscose and other raw materials required to manufacture the clothing and largest exporter of cotton fabrics.
  • It has trained manpower with lower wages.
  • It has great contribution in domestic sale and export

Weakness of textile sector:-

  • Not technically advanced as compare to other sectors
  • Low bargaining power
  • Lacks in trade pact memberships
  • Low productivity of workers

Government of India launched RoDTEP Scheme to promote the goods export from the country by providing incentive in the form of duty Credit scrip.

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