Introduction
India has one of the world's largest sheep populations, with 74.26 million sheep recorded in the 20th Livestock Census, ranking the country as third largest globally. In FY25, India’s wool production stood at 34.57 million kg, registering a 2.63% year-on-year increase.
India’s wool sector continued to demonstrate stable growth momentum in FY25, with total production reaching 34.57 million kilograms, reflecting a 2.63% year-on-year increase over the previous year. The industry remains strongly concentrated in a few key producing regions, with Rajasthan (47.85%), Jammu & Kashmir (22.88%), Gujarat (6.22%), Maharashtra (4.75%), and Himachal Pradesh (4.30%) emerging as the leading contributors. Collectively, these five states accounted for 85.98% of India’s total wool output, highlighting their strategic importance to the country’s livestock and textile ecosystem.
India’s wool production (million kgs)
Source: Ministry of Agriculture, Ministry of Fisheries, Animal Husbandry & Dairying, Department of Animal Husbandry & Dairying
India’s wool and woollen industry is the seventh largest in the world and one of the important sectors of India’s rural economy. The woollen industry employs 12 lakh people in the organised sector and 20 lakhs in the sheep rearing and farming sector. The wool and woollen industry in India comprises organised and decentralised sectors. The organised sector comprises composite mills, combing units, worsted and non-worsted spinning units, knitwear and woven garments units and machine-made carpet manufacturing units. The decentralised sector consists of hosiery and knitting units, power loom units, hand-made carpets, druggets & namadahs units and independent dyeing and process houses.
Export Trend
India’s wool and woollen textile exports have remained broadly resilient over the past decade, with export value consistently staying above the US$ 1.6 billion mark across most years. After reaching US$ 1.87 billion in FY17, exports remained in the range of US$ 1.68-2.06 billion through FY22, reflecting stable international demand for woollen carpets, garments, yarn, and made-up products. The sector witnessed a notable high of US$ 2.06 billion in FY22, supported by a recovery in global textile demand and strong export traction in value-added woollen products.
In recent years, exports have shown sustained stability, rising from US$ 1.74 billion in FY24 to US$ 1.83 billion in FY25, before moderating to US$ 1.76 billion in FY26. In FY27, during April-June 2026, exports of key wool and woollen products stood at US$ 456.93 million. Handmade carpets excluding silk remained the largest contributor at US$ 362.10 million, accounting for around 79.2% of the total, followed by woollen yarn, fabrics and made-ups at US$ 51.51 million and RMG wool at US$ 43.07 million. Raw wool exports stood at US$ 0.25 million during the period. The strong contribution of handmade carpets and other value-added woollen products highlights the continued importance of finished and semi-finished products in India’s woollen textile export basket.
India’s wool and woollen products exports (US$ billion)
The overall trend of the exports for the last few years is given in the data below:
Source: Directorate General of Commercial Intelligence and Statistics, FY27* include April-June 2026
Note: Data includes raw wool, woollen yarn/fabrics & made-ups, RMG wool and handmade carpets (excluding silk), based on DGCIS classifications.
Major Importers
India’s wool and woollen textile exports in FY27 (April-June 2026) were supported by demand from a diverse set of international markets, with the United States emerging as the largest destination among the countries listed. Exports to the United States stood at US$ 234.44 million, accounting for approximately 51.3% of the total exports of the four key wool and woollen product categories during the period. The United Kingdom ranked second with exports of US$ 34.75 million, followed by Germany at US$ 19.79 million, Italy at US$ 17.65 million and Australia at US$ 16.75 million.
Other notable destinations included Sweden at US$ 13.07 million, the Netherlands at US$ 11.45 million, France at US$ 10.10 million, Canada at US$ 7.55 million and Spain at US$ 7.14 million. Across these destinations, handmade carpets excluding silk accounted for a significant share of exports, while RMG wool and woollen yarn, fabrics and made-ups also contributed to export value. The geographic spread of exports across major developed and emerging markets highlights the international demand for India’s handmade carpets, woollen garments and other value-added woollen products.
Country-wise export of wool to major countries, (FY27*)
Source: Directorate General of Commercial Intelligence and Statistics, FY27* include April-June 2026
Note: Data includes raw wool, woollen yarn/fabrics & made-ups, RMG wool and handmade carpets (excluding silk), based on DGCIS classifications.
Government Initiatives
The Government of India continues to support the development of the wool sector through the Integrated Wool Development Programme (IWDP), implemented by the Central Wool Development Board (CWDB) under the Ministry of Textiles. The programme was approved for the FY22-FY26 period with a total allocation of Rs.126 crore (US$ 14.26 million) and focuses on strengthening the wool value chain through marketing support, processing infrastructure, human resource development, branding, research and development, and Pashmina development.
The Wool Marketing Scheme (WMS), a key component of the Integrated Wool Development Programme (IWDP), supports raw wool procurement through a revolving fund, an e-marketing portal, strengthened marketing infrastructure, formation of wool producer groups and organisation of woollen expos, thereby improving market access for wool growers and artisans. In FY26, Rs.25.80 crore (US$ 2.92 million) was allocated to the IWDP, of which Rs.11.90 crore (US$ 1.35 million) was utilised up to December 31, 2025. Of the amount utilised, Rs.70.29 lakh (US$ 0.08 million) was spent under the Wool Marketing Scheme during the period.
Integrated Wool Development Programme (IWDP)
The primary goal of this initiative was to stop the wool production decline in India and to improve the manufacturing processes. The objective of this programme was to improve the quality of wool fibre and establish service and research centres to improve the quantity and quality of import and export productions. The programme was also aimed at improving the marketing and branding promotion for the export promotion of wool. As a part of this scheme, a total of Rs. 126 crore (US$ 16 million) were allocated to various activities for the period FY22 to FY26.
Some of the activities planned under this programme are enhancing the supply chain, linking the wool industry with producers, providing a marketing platform, establishing modern wool processing units, skill development and capacity building, etc.
The sub-components of IWDP are,
- Wool Marketing Scheme.
- Wool Processing Scheme.
- HRD and Promotional Activities Scheme.
- Pashmina Wool Development Scheme.
Governing Bodies
Central Wool Development Board (CWDB)
Some of the objectives of CWDB are to:
- Promote growth and development of wool and woollen products.
- Undertake arrangements for marketing and stabilizing the prices.
- Promote and set wool and woollen product standards.
- Quality control.
- Improve the existing markets and develop new uses of wool.
- Advise the central government in the matters related to wool and woollen industry development.
Wool and Woollens Export Promotion Council (WWEPC)
Established in the year 1964, WWEPC functions under the administrative control of the Ministry of Textile. Some of the functions and responsibilities of the council are as follows,
- To act as a registering authority for the members dealing in exports of all types of wool and woollen blended products.
- To act as an advisory body to the government of India for setting up policies and to act as an intermediary between the woollen industry and the government.
- To provide financial assistance to the member of the council to participate in the trades and exhibitions abroad.
- Promote and educate the member exporters about the schemes and benefits provided by the government.
- To organise trade expos and bring buyers and sellers together.
- Organise seminars and workshops for the member exporters to improve competitiveness and create consciousness.
FAQs
Indian woollen manufacturers serve diverse international markets, with the United States, the United Kingdom, Germany, Italy and Australia among the major destinations. Exports spanning 185 countries reflect the industry's broad global reach, supported by handmade carpets, woollen garments and value-added textile products.
Handmade carpets, woollen garments, yarn, fabrics and made-ups are key value-added products in India's woollen export basket. In FY26, ready-made woollen garments contributed US$ 183.39 million, while woollen yarn, fabrics and made-ups accounted for US$ 176.27 million.
India's woollen exports benefit from the strong contribution of finished and semi-finished products, including handmade carpets, woollen garments and home textiles. The development of new uses for wool and improvements in manufacturing processes are also supported through sectoral development initiatives.
Handmade carpets and other artisan-produced woollen products form an important part of India's export basket, highlighting the contribution of traditional craftsmanship to international trade. Government initiatives such as Woollen Expos and marketing support help artisans and weavers access broader markets.
India's woollen export basket includes ready-made woollen garments, yarn, fabrics and made-ups, catering to diverse international markets. Product diversification across apparel, carpets and home textiles supports the industry's presence in global consumer markets.
The Central Wool Development Board (CWDB) promotes standards for wool and woollen products and undertakes quality-control activities. The Integrated Wool Development Programme also supports improvements in wool-fibre quality and processing, contributing to product quality and competitiveness.
Technology upgradation, modern wool-processing units and research facilities are among the initiatives aimed at improving manufacturing processes and wool-fibre quality. These measures, alongside skill development and capacity building, support productivity and the development of export-oriented woollen products.
India's decentralised woollen sector includes hosiery and knitting units, power-loom units, handmade carpet producers and independent dyeing and processing units. Marketing support, Woollen Expos, buyer-seller meets and financial assistance for participation in overseas trade exhibitions can help smaller businesses connect with international buyers.
The Wool Marketing Scheme supports buyer-seller meets, wool producer groups and Woollen Expos to improve market access for growers, artisans and weavers. The Wool and Woollens Export Promotion Council also provides financial assistance for overseas exhibitions and organises trade expos to connect buyers and sellers.
Handmade carpets, ready-made woollen garments, woollen yarn, fabrics and made-ups remain key components of India's woollen export basket. Pashmina products and other value-added woollen textiles also represent areas supported by sectoral development initiatives, including processing, branding and marketing promotion.
RELATED SITES
1 - Churchgate Chambers
7th Floor, 5, New Marine Lines
India
Tel.:+91-22-22624372
Fax: +91-91-22-22624675
Email: mail@wooltexpro.com
Website: www.wwepcindia.com
Partners
