The textile and apparel industry is one of the leading segments of the Indian economy and the largest source of foreign exchange earnings for India. This industry accounts for 4 percent of the gross domestic product (GDP), 20 percent of industrial output, and slightly more than 30 percent of export earnings. The textile and apparel industry employs about 38 million people, making it the largest source of industrial employment in India. The study identifies the following structural characteristics of India’s textile and apparel industry:
D India has a large fiber base, and ranks as the world’s third-leading producer of
cotton, accounting for 15 percent of the world’s cotton crop. India produces a wide variety of cotton, providing operational flexibility for domestic textile producers. In the manmade fiber sector, India is the world’s fifth-largest producer of polyester fibers and filament yarns and the third-largest producer of cellulosic fibers and filament yarns.
D India is the world’s second-largest textile producer (after China), and is diversified
and capable of producing a wide variety of textiles. The spinning segment is fairly
modernized and competitive, accounting for about 20 percent of world cotton yarn exports.
D India’s textile and apparel industry benefits from a large pool of skilled workers
and competent technical and managerial personnel. India’s labor is inexpensive;
hourly labor costs in the textile and apparel industry average less than 5 percent of those in the U.S. textile and apparel industry