Uttar Pradesh Textile & Apparel Sector Prepared from Deloitte Report | May 2024
UP – Robust and Resilient Economy Economy size: $301 Bn (2022-23), 8% of India’s GDP 5th largest exporter (~5% share) Demographic dividend: 56% working population Large consumer base: 240 Mn (~17% of India) 3.8x increase in capital outlay (FY18–FY23) Strong infrastructure: airports, railways, roads, waterways
India Textile & Apparel Sector 12.2% of manufacturing GDP 2nd largest employer (10+ crore jobs) 12% of India’s exports (~$45 Bn, FY22) PLI Scheme: ₹197.98 Bn investment, 245,362 jobs 2nd largest cotton producer and consumer $4.34 Bn FDI inflows (2000–2023) 3rd largest global exporter
UP Textile & Apparel Sector 3rd largest textile producer in India 85 spinning mills, 74 large textile mills Major clusters: carpets, Chikankari, silk sarees UP: 5th largest silk & apparel producer 13% of India’s fabric production 1.5 Mn employed in the sector 7 approved PLI projects
Growth Opportunities Technical textiles: sports, auto, industrial Home textiles linked to leather base Sericulture clusters in Varanasi Import substitution: shirts, blankets, rugs PM MITRA parks in Lucknow & Hardoi (1000 acres) Silk Exchange project at Varanasi Exports to rise 3.6x by 2027-28
Infrastructure Advantage Rank #1: Expressway network in India 2nd largest road network, largest railway system EDFC (~57%) & WDFC (~10%) coverage 5 international, 16 domestic airports Metro in 5 cities, RRTS under construction Strong textile clusters across UP PM MITRA parks near Kanpur
Policy Framework & Incentives UP Textile & Garmenting Policy 2022 UP Industrial Investment & Employment Promotion Policy 2022 UP FDI & Fortune Policy 2023 Capital subsidy: 25-35% on plant & machinery Land subsidy: up to 80% in Bundelkhand & Purvanchal Electricity duty exemption (10 years) Freight & export subsidies Employment subsidies: up to ₹3,200/worker/month