Cotton states Textiles cities export rank



Cotton Textiles Employment exports:

India has the largest area under cotton cultivation in the world, but it is the largest producer of cotton after China.

Cotton Production by Country 2023

    • India – 6.5 million tons
    • China – 6.4 million tons
    • The United States of America – 3.2 million tons
    • Brazil – 2.3 million tons
  • India is the World's 3rd largest Manufacturer and Exporter of Textiles and Apparels, with a6% share of the global trade.
  • India’s textile and apparel exports (including handicrafts) stood at US$ 44.4 billion in FY22, a 41% increase YoY.
  • It contributes about 10 percent to the manufacturing production, 2 percent to the GDP and 12 percent to the country's total export.
  • It is the largest industry of the country and provides the largest number of employment after the Indian Railways. There are 13 lakh workers involved under organized sector which is 18% of the total industrial workers of the country.
  • Textile Sector provide 45 million direct & 60 million indirect jobs in allied activities.
  • Traditional Indian cotton industry was throughout india but important centres were Bombay, Ahmedabad & Kanpur.
  • Modern cotton textile industrial development is taking place in Coimbatore, Tamilnadu.

Difficulties for the Textile sector

Cotton Textiles Employment exports:

  1. India’s exports by value fell behind countries like Vietnam & Bangladesh in certain years.
  2. Duty-free import under SAFTA - The steady rise in textile imports owes its origin to policies of the past few years. India allowed duty-free import of readymade garments from Bangladesh under the South Asian Free Trade Agreement (SAFTA) in 2006. This has resulted in an increase in imports of apparels made with Chinese fabrics and yarns via Bangladesh which imports Chinese fabrics, converts them into garments using its cheap labour and exports the garments so made to India, without paying any import duties. Thus, the duty-free market access given to Bangladesh is facilitating indirect entry of Chinese textiles into India.
  3. Barriers to entry due to emerging market status - India being an emerging market rather than a less developed country, suffers from the disadvantage of duties being imposed by the importing countries. Countries like Bangladesh, Sri Lanka and African countries get duty-free access and make India’s textiles comparatively less competitive in the international landscape.
  4. Financial disincentive due to inverted duty structure - The manmade fibre (MMF) value chain in the textile industry currently faces an inverted duty structure, that is the tax on output or the final product is lower than taxes on inputs, creating an inverse accumulation of input tax credit. This is usually refunded by the government, creating a revenue outflow for the government, but also blocks crucial working capital flow for businesses in the meantime.

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