Top 5 Textile Industry Products Manufactured in India

May 23, 2024
Updated on

The Indian textile industry is one of the most vital contributors to the country’s economy. According to a report from the Indian Brand Equity Foundation (IBEF), the Textile Industry employs over 65 million employees in direct and related sectors. It accounts for 2.3% of India’s GDP, 13% of industrial production, and 12% of its total exports. In FY’22, textile and apparel exports jumped to US $44.4 billion, an impressive 41% YoY growth from US $29.9 billion in FY’21. This booming industry is being propelled by current trends, government reforms, and increased consumer demand. All of these factors are driving the industry’s rapid revenue growth. 

Textile Industry is an ever-growing industry with revolutionary advancements happening concurrently. Clothes are one of the basic necessities for people and everybody in and around the world buys them. They can represent the uniqueness of someone’s cultural, social, financial, political, and religious values. In fact, it has the ability to be synonymous with a society, state, or even a nation. Textiles also have become a strong means to express oneself and influence people.

5 Major Types of Textile Produced in India

India is a world leader in the production of several textile products, such as being the largest producer of Cotton and Jute and the second-largest producer of Silk and Fibre. In terms of capacity, the country has the second most extensive vertically integrated production base, right after China. India has more than 3,400 textile mills and an installed capacity of more than 50 million spindles and 842,000 rotors. In this article, let us dive deep into some of the various textiles produced in India.


Cotton is one of the most popular fabrics in India. It is used for everything from sarees and salwar kameez to bed sheets and pillowcases. Cotton is known for its softness, breathability and durability. India is a leading cotton producer, with 11.7 million hectares of production compared to 31.2 million hectares globally. This crop is important for the Indian economy and provides livelihood to around 6.5 million cotton farmers. According to a report from the Indian Trade Portal, In 2021-22, India’s total cotton production was 34.1 million bales (bales of 170 kg each).

The Central Zone, consisting of Gujarat, Maharashtra, and Madhya Pradesh, is the largest producer of cotton in India, and Gujarat is the leading state. Amreli district, the largest cotton-producing district in Gujarat, is particularly significant. Maharashtra’s main cotton-producing areas are Yavatamal, Buldhana, Akola Amravati Nagpur, Washim, and Wardha. 

The Southern Zone of India is an important contributor to the nation’s cotton production. Telangana, Andhra Pradesh, Karnataka, and Tamil Nadu account for 30% of the country’s total production, with Telangana leading the pack with 6.58 million bales (bales of 170 kg each) produced annually. The cotton textiles industry is one of the largest employers in India, providing a livelihood for 6.5 million cotton farmers and boosting the country’s export market. With such an impressive output, the Southern Zone is a vital part of India’s cotton economy.

Cotton Export

According to another report from IBEF, India’s exports of cotton and cotton yarn to 159 countries around the world have been impressive in 2021-22. Bangladesh, China, and Vietnam have been India’s top cotton importers, together taking up 60% of India’s total exports during the April 2021-February 2022 period. Despite the challenges posed by the COVID-19 pandemic, India’s cotton and cotton yarn exports have remained strong.

China is the second-largest importer of cotton from India after Bangladesh, with the two countries accounting for over 80% of India’s total cotton imports. Meanwhile, Vietnam and Indonesia make up over 15% of India’s cotton exports, demonstrating the country’s ability to make a significant impact on the global cotton market.

During the 2020-21 cotton season (October 2020-April 2021), India exported a total of 5.5 million bales of cotton to a variety of countries, with Bangladesh leading the way at 2.20 million bales. China followed close behind at 2.19 million bales, while Vietnam was the third-highest importer with 0.64 million bales. 

In terms of cotton yarn exports, China was once again the top importer with 275 million kg of cotton yarn out of a total of 980 million kg exported. Bangladesh followed with 225 million kg, while Vietnam and Peru imported 56 million kg and 53 million kg, respectively. These figures demonstrate the importance of India’s cotton textile industry and its ability to supply quality cotton and yarn to the global market.


Jute is a natural, strong, versatile fibre, which is also known as “Golden Fiber due to its golden-brown colour. It has been used for centuries to create rope, twine, mats, sacks, and other useful items. It is also used to make carpets, upholstery, and other fabrics. The jute industry is an integral part of India’s economy and holds a rich history. It is mainly concentrated in West Bengal, which is home to the majority of the mills, and employs around 3.5 lakh workers. India is the leading jute goods producer globally, contributing around 70% of the world’s total production.

On average, 90% of the jute produced in India is consumed domestically, which is largely due to the huge domestic demand. The other major jute-producing states are Assam, Bihar, Orissa, and Andhra Pradesh, with an average land area of 800,000 hectares under raw Jute & Mesta cultivation. Therefore, this industry is an important source of income for many families and has a significant impact on the country’s economy.

The Jute industry produces a variety of products that are 100% biodegradable, and recyclable and therefore eco-friendly. The popularity of eco-friendly options has gone up since wider awareness and plastic bans happened in countries in different parts of the world. When other countries are looking for different ways to cut down the use of single-use plastic, India already has Jute, a sustainable substitute for plastic.

From hessian and sacking to food-grade jute cloth, yarn, carpet backing cloth, blankets, decorative fabrics, floor coverings, and shopping bags, the industry offers a wide range of products that meet the standards for safe packaging. As of 1st March 2021, the number of spindles installed in the jute industry was 6,08,594, showcasing the immense potential of this sector in India.

Jute Export

India’s jute and jute product exports have seen remarkable growth in recent years. From 2015-16 to 2020-21, exports of these goods have grown at a CAGR of 9%. Moreover, in March and February of 2022, India exported jute and floor coverings worth an estimated US$ 49 million each. This indicates a great potential for India to capitalise on the demand for jute and jute products in the global market. Other jute-diversified products, such as hand & shopping bags, gift articles, and decorative fabrics, are also exported from India, with Jute diversified products (JDP) having the highest share in 2020-21, amounting to US$ 163 million, stated another report from the Indian Trade Portal.

India’s major jute and jute product importers include the USA, the UK, Australia, Belgium, Egypt, Germany, Italy, Japan, Saudi Arabia, and Turkey. In 2021-22, the United States was India’s leading importer of jute manufactures, including floor coverings, with a value of US$ 118.3 million, representing a 26.3% increase from the previous year. This was followed by the UK and Germany, with exports valued at US$ 27.8 million and US$ 22.3 million, respectively.


India is renowned for its exquisite silk production, with the finest silks being crafted in Varanasi and Kanchipuram. These fabrics are used to create the most luxurious sarees and dhotis, making India the second-largest producer of silk in the world. This industry is highly beneficial for the country, providing employment to 9.76 million people in both rural and semi-urban areas and being one of the largest foreign exchange earners. India produces mainly four types of natural silks: Mulberry, Eri, Tasar, and Muga. These are used for the production of garments, textiles, carpets, shawls, scarves, cushion covers, and other accessories.

During 2021-2022, the production of silk in India was 34,903 metric tonnes, marking a 3.4% increase from the previous year. Karnataka was the main contributor to this production, making up 32% of the total. This was followed by Andhra Pradesh with a 25% share. Other major silk-producing states in the country include Assam, Bihar, Gujarat, Jammu & Kashmir, Chhattisgarh, Maharashtra, Tamil Nadu, Uttar Pradesh, and West Bengal.

Silk Export

India is renowned for its exquisite silk and silk products which are highly sought after across the globe. The country exports to over 30 countries, with the USA, UAE, UK, Canada, Australia, Germany, France, Italy, Spain, Malaysia, China, Nepal, Japan, Belgium, South Africa and Singapore being the major importers. The US is the top importer of India’s silk exports, accounting for 29% of the total share in 2021-22. The UAE follows closely with 10%, while China, the UK, and Australia trail behind at 8%, 4%, and 4%, respectively. 

India produces and exports a wide variety of silk products, including raw silk, natural silk yarn, fabrics & made-ups, ready-made garments, silk waste, and handloom products, with a 2021-22 export value of US$ 248.56 million, a 25.3% rise from the previous year. Silk fabrics & made-ups and ready-made garments are the most exported items, followed by silk waste, carpets, and natural silk yarn. To further promote India’s silk industry on a global scale, the government has undertaken various initiatives, such as organising trade shows and fairs. This has allowed India to carve out an existence and reputation in the international silk market.


Wool is a popular and highly sought-after textile produced in India. It is renowned for its warmth and durability and is used to craft a variety of items, such as carpets, shawls, blankets, and sweaters and is often blended with other fabrics to create unique textures. India has the third-largest sheep population in the world, making it the ninth-largest wool producer. India is the world’s ninth-largest wool producer, with a sheep population of 74.26 million.

The organised sector of the wool industry includes composite mills, combining units, spinning mills, carpet manufacturing units, and woven and knitted garment units, while the decentralised sector of wool production consists of power looms, handlooms, knitting and hosiery, dyeing, and more. Wool is essential for producing winter clothing, floor coverings and industrial usage, and India is an important part of the global supply.

In 2020-21, India produced a total of 36.93 million kg of wool, a significant amount of which came from the major wool-producing states of Rajasthan (15.68 million kg), Jammu and Kashmir (7.65 million kg), Telangana (3.37 million kg), Gujarat (2 million kg), Maharashtra (1.55 million kg), Himachal Pradesh (1.48 million kg), Karnataka (1.05 million kg), Uttar Pradesh (0.89 million kg), West Bengal (0.76 million kg) and Haryana (0.69 million kg). This production is divided into three categories: Carpet Grade (85%), Apparel Grade (5%) and Coarser Grade (10%). The wool industry of India provides employment opportunities to around 1.2 million people in the organised sector, 2 million in the associated industries and an additional 0.3 million in carpet weaving.

Wool Export

India is a renowned exporter of a vast array of wool products. Ready-made garments, woollen yarn, carpets, fabrics, blankets, knitwear, tops, and shoddy fabrics are amongst the most popular items exported from India. These items are highly sought after due to their superior quality and craftsmanship. Woollen carpets have a maximum share of total woollen products exported out of India. India’s wool exports have seen a steady increase in recent years.

In 2020-21, the value of woollen items exported rose by 4% to US$ 1.64 billion from US$ 1.57 billion in 2019-20. Carpets made up the majority of the exports, accounting for around 80% of the total. As of January 2022, India had exported wool carpets worth US$ 1.34 billion for the current financial year 2021-22. This marks a steady and positive trend in the country’s woollen industry.

India is an important exporter of woollen products, including yarn fabrics, handmade carpets and ready-made garments, to a variety of countries, including Italy, Korea, the UK, the USA, Sri Lanka, Germany, Australia, the UAE, Sweden, the Netherlands, Oman, Afghanistan, and Tanzania. The USA is the largest importer of woollen products from India, with 2020-21 exports valued at US$ 855.6 million. The UK and Germany also have high export volumes to India, with 2020-21 exports valued at US$ 81.2 million and US$ 97.5 million, respectively. Additionally, exports to the UAE, Sweden, and the Netherlands for 2020-21 were US$ 38.5 million, US$ 32.9 million and US$ 34 million, respectively.


India has a rich and wide array of traditional handcrafted goods, many of which have long histories dating back centuries and are still kept alive by groups of artisans across the country. Handicrafts play an integral role in the Indian economy, employing more than seven million people. From hand-printed textiles to zari goods, embroidered goods, and much more, India produces a vast array of craftsmanship. Of the total artisans, women dominate the industry, with 56% of them being female.

India is home to 744 handicraft clusters, providing employment to 212,000 artisans and offering over 35,000 unique products. Surat, Bareilly, Varanasi, Agra, Hyderabad, Lucknow, Mumbai and Chennai are among the major clusters, mostly situated in rural and small towns. These handicrafts have great potential in the domestic as well as international market.

The proliferation of online portals offering handicraft products is providing a major boost to the handicraft market in India. As travel and tourism continue to grow in the country, tourists are increasingly spending money on souvenirs and other craft items, creating a lucrative opportunity for local artisans and craftspeople to showcase their wares. Additionally, the rising demand for handmade décor accessories for homes, offices, and restaurants, as well as the growing gifting industry, are further fueling the market’s growth. The handicrafts sector is economically viable with low capital investment, high-value addition ratio and high export potential.

Handicraft Export

India is one of the leading exporters of these handmade goods. Handicrafts are beautiful works of art that are created with traditional tools, materials, and techniques. In May 2022, India’s handicraft exports, excluding handmade carpets, reached US$ 120.06 million, a 1.01% increase from April of that year. Over the past three years, exports of handmade items, in particular carpets, have risen steadily, making India responsible for around 40% of the global exports of handmade carpets. The major handicrafts exported by India include handmade woollen items, embroidered and crocheted goods, hand-printed textiles and scarves, zari and zari goods, etc.

From April 2020 to January 2021, India’s handicraft exports saw a steady increase, with woodwares totalling US$ 611.48 million, embroidered & crocheted goods at US$ 463.13 million, hand-printed textiles and scarves at US$ 239.73 million. With the exception of handmade carpets, total Indian handicraft exports from April 2022 to September 2022 reached US$ 716.21 million, indicating an overall upward trend in the industry.

The demand for Indian handicrafts has been steadily rising in international markets due to their unique designs and exquisite beauty. Major export destinations for Indian handicrafts include the USA, the UK, LAC, Australia, Canada, France, Germany, Italy, Japan, Netherlands, the UAE and Switzerland. Notably, the USA is the top importer of Indian handicrafts, with a 38% share of the total exports during 2020-21. India also exports carpets to more than 70 countries, with the USA, Germany, the UK, and Australia being the largest importers, with 57%, 6%, 5%, and 5%, respectively.

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How Textile is Processed?

This section looks into how textiles are processed right, from sourcing raw materials such as wool or cotton to manufacturing the finished product. This process has been evolving for many centuries, and it continues to be refined today. Through the careful selection of materials, the skilled application of treatments, and the intricacies of weaving and stitching, we can create a vast array of garments and fabrics. By understanding the craftsmanship of this process, we can appreciate the beauty of the end product.

Source Fibre

The textile manufacturing process utilises both natural and man-made (or synthetic) fibres. The natural fibres are cotton, wool, silk, etc. The artificial fibres are polyester, rayon, nylon, etc. The first step is to source these fibres. Natural textile fibres need to be cultivated, harvested, and obtained from farmers, while artificial fibres like polyester, rayon, and nylon are ordered directly from individual manufacturing plants. Once the fibres have been sourced, they can be woven together to create a variety of fabrics and textiles.

Yarn Manufacturing

The yarn manufacturing process begins with the careful preparation of raw materials. The fibres are thoroughly cleaned and then carefully blended together to create the desired yarn. Any loose debris or remains are removed immediately to prevent any contamination of the batch. The next step is the spinning process, which uses the prepared raw materials to create the finished yarn. Spinning is done by using machines with steel bobbins that have been wound with fibre or spinning material known as roving, which can come from natural sources like cotton or wool. The spinning process is done with precision and care to ensure that the yarn meets the highest standards for quality and consistency.

Fabric Manufacturing

The weaving of the fabric manufacturing process is the next step in fabric production. This involves taking yarn from one machine and transferring it to another in order to create a length of fabric. Weaving is accomplished by machines that interlace the yarn into multiple lengths, which are then fed onto a loom to create various colours and threads based on specific sections known as harnesses. As the yarn is woven together, a beautiful and intricate fabric is created. This fabric manufacturing process is a complex one, requiring a high degree of skill and accuracy for a successful outcome. 4 types of fabric have been produced in the Garments Industry are Woven fabric, Knit fabric, Nonwoven Fabric and Braided Fabric.

Wet Processing

This is the process of dyeing and finishing, where you bring the fabric to a semi-finished state. The dyeing process involves adding colour to the fabric and making it more colourful. The finishing process involves adding additional properties such as anti-pill, soil release, or flame-retardant treatments that are chemically applied before packaging and shipping. In a few cases, textile printing is also included. Textile printing involves the use of inkjet printing for vibrant, full-colour designs on t-shirts, aprons, sweatshirts, and other garments. It allows for a range of creative possibilities and is a great way to add a unique touch to garments.

Garments Manufacturing

This is the final step in which semi-finished cloth is transformed into finished cloth. It is the heart of Yarn manufacturing and is known as the mother of the textile manufacturing process. This step is a collective set of processes that involves garments design, pattern making, sample making, production pattern making, grading, marker making, fabric spreading, fabric cutting, cutting parts, sorting, bundling, sewing, inspection, spot removing, ironing, finishing, final inspection, packing and ends with the shipment.

The Challenges Faced by Textile Industry

The Indian textile sector is facing numerous challenges due to frequent policy changes from both the national and state levels. Rising costs of clothing and apparel as a result of the GST have added to the woes of the industry. Moreover, the lack of access to the latest technologies and its inability to meet the global export market criteria have further hindered its growth. In addition, child labour, competition from neighbouring countries in the low-cost clothing sector, and safety regulations are other major issues confronting the textile sector. Despite these challenges, there are numerous prospects and investments in the sector, making it an attractive option for entrepreneurs.

Future of the Textile Industry

In order to achieve its global market objectives, the Indian textile industry must take several steps to increase its competitiveness. These measures should include investing in technological advancements to enhance production, as well as expanding weaving capacity. Furthermore, the government should provide support for the installation of effluent treatment facilities which will help to improve the overall commercial market. 

The Indian textile sector is a key contributor to the country’s economy and its growth should be a priority for both the national and state governments. To ensure the sector reaches its full potential, government clearance should be provided for effluent treatment facilities, taxes on government-subsidised exports should be reduced, and a reliable supply of gas should be secured. Moreover, the industry should invest in training its staff to meet the demands of the modern market. If these measures are taken, the Indian textile sector will be able to reach new heights and continue to be a driving force of the commercial market.

The introduction of capital subsidies, a streamlined approach to resolving industry problems, and a fixed annual price for yarn would help to support the nation’s struggling farmers and promote the free flow of labour. Furthermore, the increasing disposable income of Indians has driven up demand for goods in the Indian textile sector, both domestically and abroad, providing a great opportunity for growth in the textile industry. This potential growth is further bolstered by the ongoing expansion of the retail sector, government aid, and investments. Thus, India’s textile industry is set to capitalise on a bright future.


India is one of the world’s leading producers and exporters of textiles. Indian textile products are renowned for their high quality, intricate designs and variety. The country has a long history of weaving and dyeing, and this has resulted in a wide variety of textiles being produced. From cotton and silk to wool and linen, India has something for everyone. India has been weaving and dyeing textiles for centuries, and the craftsmanship of its artisans is the cornerstone of its textile industry. Indian textiles are often characterised by the use of bright, vibrant colours, intricate patterns and delicate embroidery.

Cotton is a popular choice for clothing and bedding, while silk is favoured for traditional saris and scarves. Wool is used to make heavy blankets and carpets, while linen is popular for tablecloths, curtains and upholstery. India is also a major producer of synthetic fabrics, such as polyester, nylon and rayon. These fabrics are used to create lightweight clothing, as well as home furnishings. 

The country is also home to a large number of jute mills, which produce fabrics for a variety of uses, including bags and home furnishings. In the modern world, Indian textiles are highly sought after, both domestically and internationally. Indian textiles are exported to countries around the world, and the country’s textile industry has a major impact on the global economy. In addition, India’s textile industry supports millions of jobs, both in the manufacturing sector and in the supply chain.

However, the textile industry is facing several challenges in the current economic environment, making it difficult for Micro, Small and Medium Enterprises (MSMEs) in this sector to survive. One of the biggest challenges that MSMEs in the textile industry face are a lack of adequate finance. This is where business loans from NBFCs like Kinara Capital come in.

Business Loans from Kinara Capital provide MSMEs with much-needed access to finance. These loans enable them to invest in new technology and infrastructure, which can improve the quality of their products and services. They can also be used to fund expansion plans, such as opening new branches or investing in new machinery.

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What are the major types of textiles produced by the Textile Industry in India?

The major types of textiles produced by the Textile Industry in India include cotton, silk, jute, wool, and synthetic fabrics. 

What types of fabrics are used in traditional Indian clothing?

Cotton, wool, silk, rayon, polyester and acrylic are all used for clothing.

What are the advantages of producing textiles in India?

The advantages of producing textiles in India include access to low-cost labour, abundant natural resources, and a large consumer base.

How does the Indian textile industry benefit from modern technology?

The Indian textile industry has benefited from modern technology by increasing production capacity and efficiency, improving product quality, reducing costs, and enabling the industry to reach new markets.

What is the importance of the weaving process in the textile industry?

The weaving process is an essential part of the textile industry as it turns yarns into fabrics. It is the process of interlacing two sets of yarns together in the form of a fabric.

What is the role of dyeing in the textile industry?

Dyeing is a process used in the textile industry to colour fabrics. It is used to give fabrics a desired colour, pattern, and texture.

How does the retail sector of the textile industry work?

The retail sector of the textile industry involves the sale of finished products to consumers. This includes clothing stores, online retailers, and other outlets that sell clothing and other textile-related products.

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