India's textile industry contributes about 14 per cent to industrial production, five per cent to Gross Domestic Product (GDP) and accounts for 17 per cent of foreign exchange inflows. Involving over 45 million people, the textile industry is the country's second largest employer, after agriculture.
The size of the Indian textile market is expected to expand at a CAGR of 10.1 per cent between 2009 and 2021 (Figure 1). The Indian textile industry is set for strong growth, buoyed both by strong domestic consumption as well as export demand. Readymade garments were the largest contributor (39 per cent share) to the total textile and apparel exports from India in 2012 (Figure 2). The textile sector has witnessed a spurt in investment during the last five years. The industry attracted foreign direct investment worth US$ 1.15 billion from April 2000 to June 2014. The government has also taken a lot of initiative for the development of this sector.
Polyester is the most important man-made textile fibre and its production has continuously grown over the years (Figure 4 and 5).