The Indian Textile Industry contributes approximately 5 per cent to GDP, and 14 per cent to the overall Index of Industrial Production (IIP).The Indian textile industry has the potential to grow five-fold over the next ten years to touch US$ 500 billion. The current industry size comprises domestic market of US$ 68 billion and exports of US$ 40 billion.
The Indian Textile industry attracted foreign direct investment (FDI) worth US$ 1,522.51 million during April 2000 to December 2014. India is the world's second largest producer of textiles and garments and accounts for 63 per cent of the market share. India accounts for about 14 per cent of the world's production of textile fibres and yarns .
The domestic textile and apparel industry in India is estimated to reach US$ 100 billion by 2017 and US$ 141 billion by 2021 from US$ 67 billion in 2014. The size of India's textile market in 2014 was US$ 99 billion; the market is expected to expand at a compound annual growth rate (CAGR) of 9.6 per cent over 2014-23 to US$ 226 billion as per estimates.
Exports from Indian Textile Industry is expected to increase to US$ 82 billion by 2021 from US$ 40 billion in 2014. Demand for apparel is likely to rise to US$ 122 billion by 2017 from US$ 65 billion in FY11.
In the 12th Five Year Plan, the Government of India plans to provide a budgetary support to textiles of US$ 4.25 billion against US$ 4.18 billion in the 11th Five Year Plan.