Cotton plays an important role in the Indian economy as the country's textile industry is predominantly cotton based. India is one of the largest producers as well as exporters of cotton yarn. Cotton yarn and fabric exports accounts for about 23 per cent of India’s total textile and apparel exports. During April-September 2018, exports of cotton yarn, cotton fabrics and cotton made-ups grew by 26.8 per cent year-on-year.
Various reputed foreign retailers and brands such as Carrefour, Gap, H&M, JC Penney, Levi Strauss, Macy's, Marks & Spencer, Metro, Nike, Reebok, Tommy Hilfiger and WaImart import Indian textile products. Gujarat, Maharashtra, Telangana, Andhra Pradesh, Karnataka, Madhya Pradesh, Haryana, Rajasthan, and Punjab are the major cotton producers in India.
India’s textile industry is expected to reach 223 billion dollars by 2021. The Indian textile industry is looking to complete its transition in the wake of demonetisation and GST. Internal factors are improving, even as external factors are in favor of India. China is retreating from a large part of the textile value chain and that is expected to favor India.
On export front too, things are turning around. Exports of textile and apparel grew 38 per cent during October 2018 as compared to October 2017. Over the same period apparel exports grew at a whopping 54 per cent.