According to a year-end report released by the Indian government on the textile industry, growth in the textile sector has been inspiring”. Production of fabrics increased from 39844 million sq. metres in 2001-2002 to 43498 million sq. metres in 2004-2005.

According to figures for April-August, 2005, although exports of man-made textiles fell 16.4% in the year 2004-2005, all other sectors reported positive growth. Readymade garments rose 12.3%, cotton textiles rose 0.3%, wool exports increased by 30.5%, silk by 2.1%, coir & coir products by 16% and jute goods by 13.7%.

However, despite this growth, the government stated that other countries such as China, Bangladesh, and Sri Lanka had seen higher increases in textile exports.