The woollen textile in India has come to a prodigious position after the economic liberalization in India in the 1990. There are over 50 woollen mills in the country. Many of them are based in Punjab with Amritsar, Dhariwal and Ludhiana serving as the key centres. The other centres of the industry include Mumbai, Bangalore, Jamnagar, Kanpur and Srinagar. Domestic wool production was 44,000 tonnes in 1997-98. 16 to 18 thousand of tonnes of wool imported from overseas can be added this amount.

Indian woollen textile has been developed in Punjab, Uttar Pradesh, Maharashtra, Rajasthan, Haryana, Jammu & Kashmir, Gujarat, Uttaranchal, Andhra Pradesh, and Karnataka. The Indian woollen textile is well admired for the hand-knitted carpets and apart from these, it is also used for making blankets, knitwear, garments, apparel, finished textiles etc.

The government of India has taken necessary steps for the development of woolen textiles in India. Marketing of wool and woollens, market intelligence, standardization, price stabilization of wool and woolen products and quality control have been made by the textile ministry of India.

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