Abundant availability of raw materials and skilled workforce have made the country a sourcing hub for the world garment industry.The Indian garment sector contributes about 14 per cent to industrial production, 4 per cent to the gross domestic product (GDP), and 27 per cent to the country's foreign exchange inflows.
It provides direct employment to over 45 million people. The Indian Garment industry is set for strong growth, supported by strong domestic consumption as well as export demand.MMF (man-made Fibre) production increased by about 4 per cent during FY2014. Cloth production by mill sector registered a growth of 6 per cent during FY2014. The total cloth production grew by 3 per cent during the same period.
Textiles exports registered a growth of 14.58 per cent. Garment exports from India is expected to touch US$ 60 billion over the next three years according to industry experts. The Indian Garment Industry attracted foreign direct investment (FDI) worth Rs 6,710.94crore (US$ 1.11 billion) in FY2014. Improved demand from the US market, rising labor cost in China would be a boost to the Indian textile exports.
The total value of textile products exported from India touched US $35.4 bn in FY14, which was 12% higher compared to FY13. The US has been the primary market for Indian garment exporters.