India is the world’s second largest producer of textiles and garments after China. It is the world’s third largest producer of cotton—after China and the USA—and the second largest cotton consumer after China. The textile and garment industry in India is one of the oldest manufacturing sectors in the country and is currently its largest. The textile and garment industry fulfils a pivotal role in the Indian economy. It is a major foreign exchange earner and, after agriculture, it is the largest employer with a total workforce of 35 mn. In 2005 textiles and garments accounted for about 14% of industrial production and 16% of export earnings.
The industry covers a wide range of activities. These include the production of natural raw materials such as cotton, jute, silk and wool, as well as synthetic filament and spun yarn. In addition an extensive range of finished products are made. The Indian textile industry accounts for about 23% of the world’s spindle capacity, making it the second highest after China, and around 6% of global rotor capacity. Also, it has the highest loom capacity—including hand looms—with a 61% share. India accounts for about 12% of the world’s production of textile fibres and yarns. This includes jute, of which it is the largest producer. The country is the second largest producer of silk and cellulose fibre and yarn, and the fifth largest producer of synthetic fibre and yarn.
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