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Market Reports

India’s Textile Industry

Market Reports - India’s Textile Industry
1Quick Facts: India’s Textile Industry
2Overview of India’s Textile Industry
3Segmentation Overview: India’s Textile Industry
4Government Initiatives
5Megatrends in Textile Industry
6Why Invest in India’s Textile Industry?

Quick Facts: India’s Textile Industry

  • The size of India’s textile and apparel market is estimated at INR 15.5 trillion in 2024 and projected to grow to INR 30.4 trillion by 2030.
  • The Textile & Apparel (T&A) sector, including handicrafts, contributed ~8.2% of India’s total merchandise exports in FY 2023-24.
  • India holds ~3.9% share of global trade in textiles & apparel, ranking 6th globally
  • In FY 2023-24, India exported textile items worth INR 2.9 trillion. Apparel comprised 42% of exports, raw / semi-finished 34% and non-apparel finished goods 30%.
  • The textile & apparel industry contributes 2.3% to GDP, 13% of the total manufacturing GVA (Gross Value Added) and 12% of export earnings through the textile sector
  • India is the largest producer of cotton, accounting for 24% of global output and the second-largest producer of polyester.
  • In India’s textile industry, over 45 million people are directly employed, making it the second largest employer after agriculture.
  • Nearly 80% of the textile industry’s production capacity is concentrated within Micro, Small and Medium Enterprise (MSME) clusters across India, reflecting its inclusive and widely distributed nature
  • FDI inflows into textiles (including dyed/printed fabrics) stood at INR 365.4 billion between April 2000 to September 2023
  • India has 744 handicraft clusters employing nearly 212,000 artisans and offering over 35,000 products. Surat, Bareilly, Varanasi, Agra, Hyderabad, Lucknow, Chennai and Mumbai are among the major clusters
  • In 2021, India approved 7 PM-MITRA Parks with a total outlay of INR 44.5 billion for the upcoming 7 years (till 2027-28)
  • The technical textiles market in India is estimated at INR 1.9 trillion in 2021-22, with a CAGR of 10%
  • The Indian Government launched the ‘Samarth’ scheme to skill over 400,000 workers in the textile sector
  • India’s jute industry is the largest in the world, producing 1.6 million tons annually

Overview of India’s Textile Industry

The Indian textile industry is one of the country’s oldest and most dynamic sectors, combining centuries-old traditions with modern manufacturing practices. It contributes nearly 2.3% to India’s GDP, 13% to industrial output and approximately 11% to total exports. This industry remains a vital pillar of the economy and is the second-largest source of employment after agriculture, directly engaging over 45 million individuals. The textile value chain in India is extensive, encompassing fiber cultivation, spinning, weaving, processing and garment manufacturing.

Moreover, the country is the world’s largest producer of cotton and jute, the second-largest producer of silk and a key supplier of man-made fibers. Strong raw material availability, skilled labour and diverse regional clusters such as cotton in Gujarat and Maharashtra, silk in Karnataka, wool in Punjab and man-made textiles in Surat give India a competitive edge.

Furthermore, the Indian textile industry also has a significant cultural dimension, with handlooms and handicrafts supporting millions of rural households while also contributing to exports. On the policy front, initiatives like the PLI Scheme, PM MITRA Textile Parks and incentives for technical textiles are strengthening infrastructure and attracting investment. With exports to over 150 countries, growing demand for technical textiles and rising emphasis on sustainability, India’s textile industry is well-positioned as a global hub for innovation, tradition & sustainable growth. 

Major Textile Hubs in India

Segmentation Overview: India’s Textile Industry

Cotton:
Cotton dominates India’s textile raw material consumption, accounting for approximately 60% of the total consumption basket. India holds the distinction of having the largest cotton acreage globally with 126.8 lakh hectares under cultivation, representing about 40% of the world’s cotton area. Cotton production supports approximately 6 million cotton farmers and 40-50 million people engaged in related activities. India cultivates all four commercial species of cotton and has a well-established Minimum Support Price (MSP) mechanism, operated through the Cotton Corporation of India Ltd. (CCI), to ensure remunerative prices for farmers.

Synthetic/Man-Made Fibre (MMF):
India is the second-largest producer of man-made fibres globally after China, with MMF textile and apparel exports valued at INR 712.5 billion in FY 2023-24. The government has established a Textile Advisory Group on MMF to deliberate and recommend on issues about the entire value chain of man-made fibres. To promote MMF production, the government has launched the Production Linked Incentive (PLI) Scheme with an outlay of INR 106.8 billion specifically targeting MMF apparel, MMF fabrics and technical textile products.

India Textile Industry - Raw-material Consumption By Segment

Woolen:
The wool sector is supported through the Integrated Wool Development Programme (IWDP), a Central Sector Scheme approved by the Standing Finance Committee with comprehensive objectives to position India as a competitive wool manufacturer. Moreover, the government provides marketing platforms and supports small woolen product manufacturers through exhibitions and trade promotion activities.

Silk:
India is the second-largest silk producer globally and the largest consumer, with production of 38,913 MT in 2023-24. The country has the unique distinction of producing all four commercial varieties of silk: Mulberry (accounting for 76.8% or 29,892 MT), Tasar (4.1% or 1,586 MT), Eri (18.5% or 7,183 MT) and Muga (0.6% or 252 MT). The silk industry is supported by the Central Silk Board (CSB), a statutory body established in 1948.

Government Initiatives

Production Linked Incentive (PLI) Scheme for Textiles

  • In 2021, the PLI scheme was approved with an outlay of INR 106.8 billion over five years to promote MMF apparel, MMF fabrics and technical textile products.
  • The PLI scheme reopened in 2025 with applications accepted till September 30, 2025, following a strong industry response.
  • Incentives provided on achieving threshold investment and turnover, followed by incremental turnover targets.

PM Mega Integrated Textile Regions and Apparel (PM MITRA) Parks

  • Government establishing 7 PM MITRA Parks in Greenfield/Brownfield sites with a budgetary outlay of INR 44.4 billion (FY2021 to FY2028).
  • PM MITRA parks are located in Gujarat, Maharashtra, Madhya Pradesh, Tamil Nadu, Karnataka, Uttar Pradesh and Telangana.
  • Designed to create modern, integrated large-scale industrial infrastructure covering the entire textile value chain from spinning to garment manufacturing.

National Technical Textiles Mission (NTTM)

  • NTTM’s mission is created with a total outlay of INR 14.8 billion for the period FY 2020 to FY 2025 to position India as a global leader in technical textiles.
  • Mission focuses on research & innovation, promotion & market development, education & skilling and export promotion.

Samarth – Scheme for Capacity Building in Textile Sector

  • Through the scheme, INR 1.2 billion were sanctioned in FY 2023-24, with 99.9% fund utilization for skill training in the textile sector.
  • Over 4.7 lakh users registered on the Samarth portal as of March 2025, with 3.8 lakh beneficiaries trained.
  • Advanced features include an Aadhaar-enabled biometric attendance system, Training of Trainers and a mobile app-based MIS.

Megatrends in the India’s Textile Industry

Sustainability and Green Textiles

  • Increasing focus on eco-friendly production processes, organic cotton cultivation and natural dyes as India’s unique contribution to global sustainability.
  • Government promoting circular economy practices and waste reduction through advanced recycling technologies and sustainable manufacturing processes.

Technical Textiles Growth and Innovation

  • The technical textiles market is expanding rapidly, with the government’s target of INR 870 billion in exports by 2025-26, representing high-growth potential.
  • Growing applications in healthcare, automotive, construction, agriculture and defense sectors are driving demand for specialized textile products.

Digital Transformation and Industry 4.0

  • Implementation of digital platforms like Jute-SMART for procurement and supply chain management, processing over INR 678 billion worth of orders.
  • MITRA parks for integrated operations encourage vertical integration.
  • Manufacturing 4.0 concepts are being adopted with discussions at Bharat Tex 2025 on automation and smart manufacturing processes.

Why Invest in India’s Textile Industry?

Robust Ecosystem and Complete Value Chain

  • India possesses the capability to manufacture the entire textile value chain from fiber to finished products, with products exported to over 100 countries.
  • Presence of integrated supply chain networks covering cotton cultivation, spinning, weaving, processing, garment manufacturing and export infrastructure.
  • Established textile clusters and manufacturing hubs across multiple states, providing specialized expertise and cost advantages.
  • Strong backward and forward linkages connecting the agriculture sector with the industrial manufacturing, ensuring raw material security and market access.

Comprehensive Government Policy Support

  • Union Budget 2025-26 allocated INR 52.7 billion for the Ministry of Textiles, representing 19% increase over the previous year’s budget estimates.
  • Multiple incentive schemes operational, including PLI (INR 106.8 billion), PM MITRA Parks (INR 44.4 billion) and NTTM (INR 14.8 billion).
  • 100% FDI allowed under the automatic route, with the textile sector receiving INR 377 billion FDI from April 2000 to September 2024.

Large Skilled Workforce and Demographic Advantages

  • India has the largest and youngest workforce globally, with a median age of 28 years and a rising per capita income of INR 204,450.
  • The textile sector provides direct employment to 45 million people, with high women participation, making it the second-largest employment generator after agriculture.
  • Skill development initiatives through the Samarth scheme create a trained workforce. Textiles drive inclusive growth in semi‑urban and rural India.

Growing Domestic Market and Consumption Base

  • The Indian textile market currently ranks 5th globally, with the government targeting a 15- 20% growth rate over the next five years.
  • Domestic market expansion supported by rising disposable incomes, urbanization and changing lifestyle preferences.
  • Strong domestic demand base provides cushion against global market volatility and ensures stable revenue streams for investors.
  • A growing middle class and increasing fashion consciousness are driving demand for both traditional and contemporary textile products.

Strategic Global Position and Export Competitiveness

  • India’s 6th position in global textile exports with 3.9% world market share provides a strong foundation for further expansion.
  • Strategic location providing access to both European and Asian markets with established trade relationships and shipping networks.
  • Competitive manufacturing costs combined with quality production capabilities offer an attractive value proposition for global buyers.
  • Government’s vision 2030 targeting INR 30.5 trillion industry size and INR 870 billion global exports demonstrates commitment to sector growth.

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