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The Garment Industry of India is an Rs -one trillion industry. Almost 33 % of its knitwear production and about 20% of its woven-garment production, both by volume, enters export markets.
Overall about 25 % of the volume of its garment production goes into export markets, leaving 75 % for domestic consumption
Apparel And Garment Industry And Exports
Last Updated: May, 2021
Indian textiles and apparel have a history of fine craftsmanship and global appeal. Cotton, silk, and denim from India are highly popular abroad, and with the upsurge in Indian design talent, Indian apparel too has found success across fashion centres around the world.
India is the world’s second-largest exporter of textiles and apparel with a massive raw material and manufacturing base. The textiles industry is a significant contributor to the economy, both in terms of its domestic share and exports.
It contributes about 7% to industry output, 2% to the GDP and 15% to the country’s total export earnings. The sector is one of the largest job creators in the country, employing about 45 million people directly.
- The export of articles of apparel and clothing accessories knitted or crocheted during April–July 2020 was US$ 1.32 billion and for the month of July 2020 it was US$ 586.49 million.
- The export articles of apparel and clothing accessories not knitted or crocheted during April– July 2020 was US$ 1.27 billion and for the month of July 2020 it was US$ 504.98 million.
- In FY19, total textiles and clothing export stood at US$ 36.62 billion and reached US$ 22.94 during April–November 2019.
- Readymade garments (RMG) export from India stood at US$ 9.50 billion from April 2020 to January 2021 and for the month of January 2021 it was US$ 1.30 billion.
- India is the largest cotton producer in the world at 33.7 million bales of 170 kgs each.
- Fibre export from the country stood at US$ 2.72 billion in 2018-19. During April–November 2019, fibre export stood at US$ 721.55 million.
- Total value of cotton yarn, fabrics and made-ups export from the country stood at US$ 947.58 billion in February 2021. During April 2020-February 2021 the export stood at US$ 8.71 billion.
- Main markets for Indian textiles and apparel export are:
- European Union
- Parts of Asia
- Middle East
- In the future, India’s apparel export is expected to increase considerably. Total export of textiles and apparel are expected to touch US$ 82 billion by 2021 at a CAGR of 12.06% from FY18.
To promote export of readymade garments and made ups, Government of India increased Merchandise Export from India Scheme (MEIS) rates from 4% to 6% under the mid-term review of Foreign Policy 2015-21.
Apparel Export Promotion Council
The Apparel Export Promotion Council (AEPC) is the official body of apparel exporters that help Indian exporters as well as importers/international buyers choosing India as their preferred destination for sourcing garments.
The Indian clothing and textile manufacturing sector is facing renewed disruption as the country is hit by a brutal second wave of Covid-19.
“Labour has [partially] gone, production is down and demand is falling,” Sanjay Arora, business director at consultancy firm Wazir Advisors, told just-style. Spinning mills are running on reduced capacities, as 15% to 20% of their workforce is suffering from Covid-19, he says.
India suffered its worst day of the pandemic on Wednesday (28 April) reporting 360,960 new cases in the previous 24 hours – the largest single-day increase in the world – and a further 3,293 deaths. The country’s death toll has now reached 201,187.
The surge in infections is expected to impede manufacturers’ ability to fulfil delivery contracts.
“We have good [export] orders, but because of the pandemic, migrant workers are leaving garment clusters, especially in Maharashtra, Delhi, Bangalore,” says Arora.
With clothing manufacturing restricted by labour disruption, demand for polyester fibre has also fallen, causing problems for spinning mills.
These businesses do have orders for exports, which are unaffected, but distribution is a headache, because the pandemic has hit container and shipping line operations.
Also, spinners were relying on domestic demand, and had not focused on planning for shipping contingencies – a problem given cargo slots need to be booked well in advance, noted Arora.
The latest problems could upset the financial recovery made by Indian clothing and textile companies from October to February, he warns.
- The Textile industry in India is one of the largest in the world with a large raw material base and manufacturing strength across the value chain.
- India became the second-largest manufacturer of Personal Protective Equipment (PPE) kits in the world.
- India is the Sixth-largest exporter of Textiles and Apparels in the world.30
- India is:
- The second-largest producer of silk in the world
- Largest consumer and the second-largest producer of cotton with 6 Mn tons of cotton production every year which is about 23% of the world cotton
- India is a global leader in jute production, accounting for about 70% of estimated world production.1
- The total number of looms installed in the jute industry was 48,322, as of 01 January 2018. The installed spindles in jute mills other than 100 % export oriented units were 7,48,612. The maximum installed capacity in jute mills other than 100% export-oriented is about 2.75 mn tonnes annually. 1
- The Textile industry in India is one of the largest sources of employment generation in the country with more than 45 mn people employed directly in 2018-19.
- The industry contributes to 7% of industrial output in value terms, 2% of India’s GDP and 12% of the country’s export earnings. 2
- Four International Expos – Indian Handwoven and Home textiles Sourcing were participated by Handloom Export Promotion Council in different countries on virtual mode during March 2021 at Australia & New Zealand; USA & Canada; Japan and Spain, France & Italy.
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The garment sector is playing a very significant role in every country’s economic development. People wear clothes to represent their culture to the whole world.
Most importantly, people are very natty and stylish in this modern age. That is why the demand for the garment’s product is increasing day by day.
With the increased demand, countries worldwide are manufacturing garments products and selling them abroad. In this article, we will talk about some of the top garment manufacturing countries in the world. So without further ado, let’s start.null
Top Garment Manufacturing Countries in the World
Every country has some garment manufacturing company to meet the minimum needs of that country’s demand. However, all of them are not world-class. Among them, here are the top garment manufacturing countries in the world according to the manufacturing index.
The Chinese garments industry is the largest manufacturer as well as exporter in the world since 1993. This country produces 52.2% of the garment products of global garments production and earns $118.5 billion.
It produces the finest quality raw materials and finished or ready-made products. The factors that make them top exporters are low-cost production, modern high-tech machinery, industrial structure, and the work progress in the domestic and global markets.
Furthermore, they use the most advanced technology and huge labor force in their production. That is why they have acquired more than half of the world’s share, and still, they are acquiring more shares.
You will be surprised after knowing that Germany is the runner-up country in exporting garments products. The annual export value of this country is almost $40 billion.
However, it was not the same as before. Recently, they have changed their mind set-up. In the past, their main focus was on producing more products with keeping the price lower as much as possible.
But now their main focus is producing high-quality products. Additionally, they have advanced technologies. So, it is a must say that Germany has a huge possibility that one day this country will lead this industry as China is doing right now.null
Bangladesh is one of the top garments in exporting countries. This country was second in exporting garments products till 2018.
But now Bangladesh is holding the third position in the world garments manufacturers’ ranking. This small country’s strength of acquiring the third position is very low labor cost and the vast workforce.
Around 20 million people work in this sector in Bangladesh. It is always the best choice for those who want to import garment products with the best quality at the lowest price. Check here the top 10 garments in Bangladesh.
Vietnam is in the fourth position amongst garment manufacturing countries worldwide. Their export value is around $38 billion.
Their main focus is specialization, modernization, and the production of a very high-quality product for competing in this competitive market.
India is also in this top ten list. Their garment industry is divided into two sections. The first one is the unorganized sector, which includes handloom, sericulture, and handicraft. The second one is organized, making yarn, fabric, and apparel.
Here the unorganized sector is much more competitive than the organized. Their export turnover is $37.11billion. So, this can be one of your choices for importing.
The Italian garment industry is very prominent in the fashion world. They have very diverse items in their production line. They produce all types of textiles, including cotton, linen, silk, wool, and so on.
They also use E-textiles technologies to benefit the user as well as to contribute to the world’s environment. Italy’s export value is around $36.5 billion.