Indian Textile & Apparel Industry 2024: Growth Ambitions in a Year of Structural Headwinds
India’s textile and apparel sector entered 2023-24 as a US$ 175 billion industry, with the domestic market accounting for US$ 138 billion and exports contributing US$ 37 billion. The domestic side held. The export side did not keep pace.
Garment exports, the primary driver of T&A trade performance, stayed below US$ 16 billion for CY 2023, a figure that puts India’s 4% global export share in sharper relief when measured against Bangladesh’s 6% and China’s dominant 34%. That gap is not simply a volume problem. It reflects a deeper structural constraint: India’s export basket remains tilted toward cotton-dominated, lower-value categories, while knitted fabric and finished apparel, the categories commanding premium positioning, are precisely where India ranks lowest globally.
Where the Value Chain Stands
Supply-side data from 2022-23 reveals a mixed picture:
- Total staple fibre production held steady at 9,684 mn kg, but cotton output contracted at a 3% CAGR since 2019-20 while polyester and viscose staple fibre grew at 8% and 7% respectively, pointing to a gradual but uneven fibre mix shift toward MMF
- Spun yarn production declined at a 3% CAGR over the same period, with cotton yarn down 5%, reflecting weak demand and capacity underutilization cascading from upstream to downstream
- Fabric exports grew at just 2% CAGR, with knitted fabric being the sole standout at 11% CAGR growth
The profitability picture across the 58 public listed companies tracked is equally layered. Margin leaders such as Page Industries (20% EBITDA), SRF (21%), and Himatsingka Seide (19%) demonstrate that focused, defensible positions deliver. The broad middle of the sector operated in single-digit margins through H1 FY24.
The Opportunity Frame for 2024
Three structural forces set the trajectory:
- Global buyers accelerating supply chain diversification away from China, with Epic Group, Tempe Grupo Inditex, and CIEL Textile Group committing FDI into Indian garment manufacturing
- Government activation through PLI extensions, seven PM MITRA park approvals, and expanded SAMARTH skilling initiatives
- Anticipated FTAs with the UK, Eurasian Economic Union, and Oman opening preferential access corridors
The Ministry of Textiles’ US$ 100 billion export target by 2030-31 requires a 15% CAGR, against the 2% CAGR delivered since 2010-11. The distance between those two numbers is the real strategic question.
The full report covers the complete value chain from fibre to garment across domestic and export dimensions, including segment-by-segment trade data, company financials for 58 listed players, and a structured view of India’s position in global T&A trade.
