Introduction
Wool is an essential fibre for producing winter clothing, floor coverings, and industrial usage. India, with the second-largest sheep population (77.4 million), is the ninth-largest wool producer in the world. The organized sector of India comprises composite mills, combing units, spinning mills, carpet manufacturing units, and woven and knitted garment units. The decentralized wool sector in India comprises power looms,
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.
Indigenous/raw wool production in India (million kgs)
Source: Ministry of Fisheries, Animal Husbandry & Dairying
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. The sector has shown a gradual and encouraging improvement in production levels over the past few years, supported by sustained activity in sheep rearing and downstream textile demand. In terms of species-wise contribution, ewes remained the backbone of wool production, accounting for 72% of total output in FY25, while lambs and rams/wethers contributed 14% each. India continues to produce three key categories of wool, carpet grade, apparel grade, and coarser grade, which support a large employment base across wool processing, textile manufacturing, and carpet weaving, reinforcing the sector’s significance within the rural economy and traditional handicrafts industry.
Wool Exports Trends
The trend of India’s raw woollen items export (US$ billion)
Source: Directorate General of Commercial Intelligence and Statistics, FY27* include April-June 2026
The wool sector of India is export oriented. The major types of wool products exported out of India under this category are ready-made garments, woollen yarn, fabrics, blankets, knitwear, tops, shoddy fabrics, etc. India’s wool exports are largely driven by value-added products, with ready-made woollen garments and woollen yarn, fabrics and made-ups accounting for the majority of export earnings. In FY27 (April-June 2026) India’s raw wool exports were valued at approximately US$ 0.25 million, with shipments to key markets across Asia and Europe. China emerged as the largest destination, accounting for more than 45% of total raw wool exports, followed by Sweden, Italy, Poland, and Nepal. Ready-made woollen garments emerged as the largest export segment, contributing more than 56% of total wool exports, followed by woollen yarn, fabrics and made-ups with a share of nearly 44%.
The export profile reflects India’s established capabilities in wool processing, garment manufacturing and textile production, supported by a diversified product range catering to apparel, fashion and home textile markets.
Major Importers
India’s raw wool exports were valued at approximately US$ 0.25 million during April-June 2026, with shipments to key markets across Asia and Europe. China emerged as the largest destination, accounting for 47.53% of total raw wool exports, followed by Sweden (14.62%), Italy (13.24%), Poland (10.69%) and Nepal (8.54%).
During the period, exports of raw wool to China stood at approximately US$ 0.12 million, followed by Sweden at US$ 0.04 million, Italy at US$ 0.03 million, Poland at US$ 0.03 million and Nepal at US$ 0.02 million. Other destinations included Chile, with exports of around US$ 0.01 million, while exports to Singapore and Bhutan remained marginal. The export profile highlights China as the key market for Indian raw wool, while shipments to Sweden, Italy, Poland and Nepal indicate a diversified export base across European and Asian markets.
Country-wise share of raw woollen items export revenue (FY27*)
Source: Directorate General of Commercial Intelligence and Statistics, FY27* include April-June 2026
Government Initiatives
Integrated Wool Development Pragramme (IWDP)
To develop the wool sector of India, the Ministry of Textiles formulated an Integrated Wool Development Programme (IWDP). This scheme was formulated to improve the country's competitiveness and quality of woollen products. Under IWDP, the ministry has allocated Rs. 126 crore (US$ 1.66 million) as a part of a five-year plan (i.e. FY22 to FY26). This scheme aims to harmonise the wool supply chain, link the wool industry and producers, and provide a marketing platform to the smaller woollen products manufacturers in India. Through this scheme, the Ministry of Textiles aims to improve the quality of woollen products by increasing wool testing, improve the tools available for manufacturing and providing skill development and capacity building capabilities to hand-made manufacturers.
The various components of this scheme had been allocated appropriate budgets. About 63% of the total Rs. 126 crore (US$ 1.66 million) budget has been allocated towards the Wool Processing Scheme (WPS), Human Resource Development and Promotional Activities Scheme and the Pashmina Wool Development Scheme (PWDS). Rs. 20 crore (US$ 2.5 million) have been allocated for the establishment and administrative expenses of the Nodal Agency and Rs. 12.42 crore (US$ 1.56 million) are reserved for the Wool Marketing Scheme (WMS) of the overall wool development scheme in India.
Governing Bodies
Ministry of Textile
The Ministry of Textile is the Indian government national agency dedicated towards planning, policy, and regulations, development, and promotion of the textile industry in the country. The apex body for textile has many statutory bodies, export promotion councils, autonomous bodies, research associations and registered societies.
The principal functional areas of the Ministry of Textile are, textile policy and coordination, cotton textile industry, jute industry, wool & woollen industry, export promotion, planning and economic analysis, financial matters, and information technology.
Central Wool Development Board (CWDB)
Established in 1987, the CWDB was formed to harmonize various diversified interests among different sectors of wool industry for integrated policy development of the industry.
The responsibilities of the board are the development of wool and woollen industry, marketing intelligence and products, price stabilization, testing of wool and woollens, product development and mainly advising the government in policy formations and coordination.
FAQs
Ready-made woollen garments are India's largest wool export category, accounting for over 56% of total wool exports, followed by woollen yarn, fabrics, and made-ups at nearly 44%. In FY2026, exports of ready-made woollen garments reached US$ 201.5 million, while woollen yarn, fabrics, and made-ups generated US$ 157 million.
India's wool export industry is driven primarily by value-added products, including garments, yarn, fabrics, and made-ups. The country exported approximately US$ 358.5 million worth of ready-made woollen garments and woollen yarn, fabrics, and made-ups combined in FY2026, reflecting its established textile manufacturing capabilities.
Export promotion and market development are supported by industry institutions that connect manufacturers with international markets. The Central Wool Development Board (CWDB) supports product development, marketing intelligence, wool testing, and policy coordination, strengthening the broader wool industry's competitiveness.
Rajasthan leads India's wool production with a 47.85% share, followed by Jammu & Kashmir at 22.88%, Gujarat at 6.22%, Maharashtra at 4.75%, and Himachal Pradesh at 4.30% in FY2025. These five states collectively account for 85.98% of domestic wool production, supporting the country's wool processing and textile manufacturing ecosystem.
India produces carpet-grade wool, which supports its traditional carpet-weaving and handicrafts industries. The wool sector's organised and decentralised manufacturing network, including carpet manufacturing units and handloom-based activities, contributes to employment and the production of diverse woollen products.
Value-added products, particularly ready-made woollen garments and woollen yarn, fabrics, and made-ups, account for nearly all of India's wool export earnings. In FY2026, raw wool exports were approximately US$ 0.67 million, highlighting the industry's focus on processed products and downstream manufacturing.
The Ministry of Textiles' Integrated Wool Development Programme (IWDP), implemented during FY2022–FY2026 with an allocation of Rs. 126 crore, supports wool quality improvement, processing, skill development, and market access. The programme also aims to strengthen supply-chain linkages between wool producers and manufacturers.
Indian wool manufacturers supply ready-made woollen garments, yarn, fabrics, and made-ups to international apparel, fashion, and home textile markets. In FY2026, the UK, USA, and Italy were the leading destinations, together accounting for nearly 44% of India's wool export earnings.
Wool's applications in winter clothing, floor coverings, and industrial products support demand across apparel and home textile markets. India's diversified wool production, including carpet-grade, apparel-grade, and coarser wool, enables manufacturers to serve a range of product categories and consumer requirements.
India's wool industry is supported by a production base of 34.57 million kg in FY2025 and an established value-added manufacturing ecosystem. Continued development of wool processing, product quality, and market linkages through initiatives such as IWDP can support the sector's export potential and competitiveness.
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