<P> Textile industry contributes about 4 per cent to the country 's GDP , 14 per cent of the industrial production , and 17 per cent to export earnings . India 's textile industry has transformed in recent years from a declining sector to a rapidly developing one . After freeing the industry in 2004 -- 2005 from a number of limitations , primarily financial , the government permitted massive investment inflows , both domestic and foreign . From 2004 to 2008 , total investment into the textile sector increased by 27 billion dollars . Ludhiana produces 90 % of woollens in India and is known as the Manchester of India . Tirupur has gained universal recognition as the leading source of hosiery , knitted garments , casual wear and sportswear . Expanding textile centres such as Ichalkaranji enjoy one of the highest per - capita incomes in the country . India 's cotton farms , fibre and textile industry provides employment to 45 million people in India , including some child labour ( 1 % ) . The sector is estimated to employ around 400,000 children under the age of 18 . </P>
<P> Textile industry contributes about 4 per cent to the country 's GDP , 14 per cent of the industrial production , and 17 per cent to export earnings . India 's textile industry has transformed in recent years from a declining sector to a rapidly developing one . After freeing the industry in 2004 -- 2005 from a number of limitations , primarily financial , the government permitted massive investment inflows , both domestic and foreign . From 2004 to 2008 , total investment into the textile sector increased by 27 billion dollars . Ludhiana produces 90 % of woollens in India and is known as the Manchester of India . Tirupur has gained universal recognition as the leading source of hosiery , knitted garments , casual wear and sportswear . Expanding textile centres such as Ichalkaranji enjoy one of the highest per - capita incomes in the country . India 's cotton farms , fibre and textile industry provides employment to 45 million people in India , including some child labour ( 1 % ) . The sector is estimated to employ around 400,000 children under the age of 18 . </P>
which is the largest source of national income in india
which is the largest source of national income in india
Textile industry
Textile industry