According to data highlighted in February 2026, Rajasthan has consolidated its position as India's largest wool-producing state, accounting for 16,013.50 thousand kilograms — approximately 47.53% of the country's total wool output of 33.69 million kilograms in financial year 2023-24. Jammu and Kashmir ranks second with 7,770 thousand kg (23.06%), followed by Gujarat (2,083.50 thousand kg, 6.18%), Maharashtra (1,601.28 thousand kg, 4.75%), and Himachal Pradesh (1,422.69 thousand kg, 4.22%).

Rajasthan's dominance stems from its vast arid and semi-arid grasslands suitable for sheep rearing, particularly the Chokla sheep (known as the 'Merino of India' for its fine carpet-grade wool) and Magra sheep found in the Bikaner-Nagaur region. The Sheep and Wool Development Board under the Rajasthan government implements breed improvement programmes, shearing camps, and wool marketing cooperatives.

India's wool sector supports approximately 1.5 crore shepherds and pastoral communities. Rajasthan's Pashmina, Merino-grade Chokla, and coarse-grade Malpura wools serve distinct market segments. Key wool-related institutions include the Central Sheep and Wool Research Institute (CSWRI) located at Avikanagar, Rajasthan, which conducts breed improvement research. The wool industry is also integral to Rajasthan's handicraft sector — particularly Jaipur's famous woollen carpet weaving industry.