India has the highest potential for the garment industry, only a conducive government policy is required.

India's textile industry is poised for remarkable growth, with expectations to double its contribution to the GDP within the next six to seven years.

- Kishore Kumar Biswas

Potential and status of the Garment Industry

Currently, it contributes around 2.3% of the GDP, and this is projected to rise to 5% by the end of the decade. Few countries possess such potential. India is the world's second-largest producer of textiles and garments, as well as the fifth-largest exporter of textiles. The industry accounts for 13% of the country's industrial production and 10.5% of its exports. India holds a 4.6% share of the global trade in textiles and apparel, according to IBFE data.

On a global scale, the apparel market is expected to grow at a compound annual growth rate (CAGR) of around 8%, reaching $2.37 trillion by 2030. The global textile and apparel trade is anticipated to grow at a CAGR of 4%, reaching $1.2 trillion by the same year. India's domestic market is projected to grow at a 10% CAGR, reaching $350 billion by 2030. According to Invest India, the domestic textile market was valued at approximately 4125 billion INR, with $125 billion in domestic sales and $40 billion in exports.

Current situation

The textile sector has long been a major employer in India, directly providing jobs to 45 million people, with an additional 100 million in related sectors. Around six million farmers are involved in cotton production, and 40-50 million people are engaged in processing and trade.

Challenges facing the sector