Textile Sector

India is among the world's largest producers of textiles and garments. Domestic Textile & Apparel industry contributes 2% to India’s GDP and accounts for 14% of industrial production, 27% of the country’s foreign exchange inflows and 13% of country’s export earnings. The Textiles & Garments industry in India employs 45 mn people in India and is second only to agriculture sector in terms of employment. 100% FDI (automatic route) is allowed in the Indian textile sector

Textile Sector Growth in India

Largest producer of cotton & jute in the world

2nd largest producer of polyester, silk & fibre in the world

Expected to reach USD 223 bn by 2021 from USD 137 bn in 2016

India contributes 9% of world’s technical textiles

Sector is estimated to have CAGR of 10% between FY 2016 & FY 2021
Exports in the Textiles & garments industry are expected to reach USD 300 bn by 2024

Why Punjab
  • Largest producer of Blended Yarn
  • 4th in India in spinning capacity (5.72% of total)
  • No. 1 in India in Sports Goods manufacturing (75% share) & exports
  • No. 1 in Hosiery Manufacturing, 65% of India’s manufacturing
  • Accounts for 95% of India’s woolen knitwear production
  • Ludhiana is the biggest manufacturing cluster for textiles in North India.
  • Textile industry accounts for 19% of the total industrial production of Punjab and contributes about 38% of the total exports from the State.
Punjab’s Textile Export to international markets
Items Value of export in USD Mn in2018
Cotton Yarn 594
Readymade Garments 333
Major Textile Clusters in Punjab
Cluster Major Segment
Ludhiana Spinning, Knitting (Synthetic), Woolen Garments
Amritsar Home furnishing & Made-ups
Jalandhar Technical Textiles
Research Institutes

Northern India Institute
of Fashion Technology,

Punjab Institute of
Textile Technology,

Govt. Institute of Textile
Chemistry & Knitting
Technology, Ludhiana

Pinnacle Institute of
Fashion Technology,

100% Road Connectivity
4/6 Lane Highways
Road Density – 133 per Sq. Km (Ranked 2)

  • Support
  • 5 Inland Container Depots (ICDs) providing excellent cargo
    handling facilities
  • Dedicated Eastern and Western Freight corridors
  • Multimodal Logistic Park under implementation

Energy Surplus State
Installed Capacity 14,177 MW

Rail Network - 2,126 Kms
More than 2 times of India’s average rail density

  • Airways
  • 2 International Airports at Mohali and Amritsar
  • 4 domestic airports at Jalandhar, Ludhiana,
    Bathinda, & Pathankot
  • Mohali Airport is under expansion.
    Whitefield flights to be operational from
    March 2019. International Airport at
    Ludhiana coming soon
Anchor Unit (IT/ITeS)
INR 50 cr Minimum
Investment (FCI)
500 Minimum Direct

Anchor Incentives:

1st in the Country to reimburse percentage of net GST for 10 years Potential Recovery of up to 200% of FCI

Employment Subsidy of up to at Rs. 48,000 per employee per year (for 5 years)

100% Exemption
Electricity Duty (15 years), Stamp Duty, CLU/EDC

Textile Parks in Punjab
Name Location Activities
Lotus Texpark Limited Barnala Spinning, Knitting, Garmenting, Processing, Made-ups, Embroidery ancillary units
Ludhiana Integrated Textile Park Limited Ludhiana Circular and flat knitting, manual and computerized, garmenting
Rhythm Textile and Apparel Park Limited Nawanshahr Knitting, Garmenting, Label printing, Rag tearing, Cutting, Stitching and packing of towels
Invest Punjab Services:
  • Dedicated relationship officer
  • Online Common Application form (CAF)
  • Digital approvals and e-payments
  • Dedicated helpdesk
  • Facilitation for meetings with Government departments
  • Online application for fiscal incentives
Investment Opportunities
  • Technical Textiles
  • Garment, Apparel & Made-ups
  • Textile Machine Manufacturing
  • Sports Goods Manufacturing

Prominent Companies in It Sector in Punjab