Textiles and Clothing in India
From Cotton to Kurta: The Textile Value Chain
The stages that turn raw fibre into finished clothing - fibre, yarn, fabric, processing and garments - and where value is added at each step.
A cotton shirt passes through many hands before it reaches you. Each stage adds value.
The stages
- Fibre: cotton is grown and ginned; synthetic fibres like polyester are made from petrochemicals.
- Yarn: spinning mills twist fibre into yarn.
- Fabric: weaving or knitting turns yarn into cloth.
- Processing: dyeing, printing and finishing give colour and feel.
- Garments: cutting, stitching and packing make clothes.
- Retail: brands and shops sell to customers.
Where the value is
- Raw cotton is a low-value commodity.
- Each later stage adds more value.
- Brands and design often capture the biggest share of the final price.
India’s position
India is one of the few countries with the full chain, from growing cotton to making garments. It is among the world’s largest cotton producers and a big maker of yarn and fabric.
The weak link
Historically, India has been stronger in the early stages (fibre, yarn) than in garments, where most jobs and value are. Exporting yarn instead of finished clothes means giving that value away to other countries.
A shirt sells for 1,500 rupees. The cotton inside might be worth under 100 rupees. Spinning, weaving, dyeing and stitching add a few hundred more, and the brand, transport and shop take the rest.
Most of a garment's price comes from later stages like stitching, branding and retail.
- Textiles move from fibre to yarn, fabric, processing, garments and retail.
- Value rises at each stage, with brands capturing a large share.
- India has the full value chain, from cotton to clothes.
- India has been stronger in yarn and fabric than in garments.
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