India is the world’s second-largest producer of textiles and garments and the third-largest exporter, covering apparel, home textiles, and technical textile products. The country holds a 4.6% share of global trade and features among the top five exporters in several categories. The industry contributes around 2% of India’s GDP and about 11% of manufacturing GVA (Gross Value Added). Its role in employment is also significant, with over 45 million people engaged and about 22,000 million garments produced annually. By 2030, the textile industry’s share in GDP is expected to more than double, reaching close to 5%.
The domestic market is valued at US$ 225 billion in 2025 and is growing at a brisk pace of 10-12% CAGR. Rising incomes, e-commerce penetration, and evolving consumer preferences are expected to push the market size to US$ 350 billion by 2030. This expansion will be further supported by India’s rising per capita income, which is projected to increase from US$ 2,812.62 in FY26 to US$ 4,000 by FY30.
On the export front, India’s textiles and apparel exports, including handicrafts, stood at US$ 8.75 billion in FY26 (April-July), with the government targeting US$ 100 billion in exports by 2030, supported by policy initiatives and improving global demand.
India has also established a strong position in technical textiles and specialty segments. The sector is projected to reach US$ 45 billion by 2026, US$ 123 billion by 2035, and US$ 309 billion by 2047, making it one of the fastest-growing areas within the industry. Within this, the mobiltech textiles market catering to automotive applications is expected to nearly double from US$ 2.32 billion in FY25 to US$ 4.57 billion by FY33, growing at a CAGR of 8.84%. India has also emerged as the second-largest manufacturer of PPE globally, with the segment expected to reach US$ 4.83 billion by 2033 at a CAGR of 10.4%. Another high-growth segment is sports technology, with India’s sports technology market valued at US$ 501.3 million in 2025 and projected to reach US$ 1,528.5 million by 2034, growing at a CAGR of 12.79%.
Global trends also point to expanding opportunities for India. The global apparel market was valued at US$ 1.9 trillion in 2025 and is expected to grow at 4% CAGR between 2026 and 2034, while the global textile and apparel trade is set to reach US$ 1.2 trillion by 2030 at a CAGR of 4%. At the same time, global fibre demand is projected to touch 149 million tonnes by 2030, creating a wider canvas for India’s textile industry to grow its export footprint.
Supporting this growth, policy measures are also being rolled out to strengthen raw material productivity and competitiveness. The Indian Council of Agricultural Research (ICAR)-Central Institute for Cotton Research (CICR) is implementing a special cotton project under the National Food Security and Nutrition Mission across eight major cotton-growing states, with an outlay of Rs. 6,032.35 lakh (US$ 6.83 million) allocated for FY25–26 to promote best practices and enhance cotton productivity.
The Indian composites market is expected to reach an estimated value of US$ 1.9 billion by 2026 with a CAGR of 16.3% from 2021 to 2026 and the Indian consumption of composite materials will touch 7,68,200 tonnes in 2027.
India enjoys a comparative advantage in terms of skilled manpower and in cost of production relative to other major textile producers.
In FY26 (April–July), the total exports of textiles and apparel (including handicrafts) stood at US$ 8.75 billion, with Ready-Made Garments (US$ 3.67 billion; 42%), Cotton Textiles (US$ 2.60 billion; 30%), and Man-Made Textiles (US$ 1.31 billion; 15%) as the key contributors.
For FY25, textiles contributed Rs. 3,30,010 crore (US$ 36.55 billion) and amounted for 5% of India’s total merchandise exports.
As of February 2026,, India had 368 notified Special Economic Zones (SEZs) across sectors, including textiles and apparel, reflecting continued development of export-oriented industrial infrastructure and strengthening India's global manufacturing competitiveness.
India is the world’s largest producer of cotton. In FY25-26, the production of cotton in India have been estimated at 292.15 lakh bales of 170 kgs.
Production of yarn stood at 5,481 million kgs in FY24 and 2,752 million kgs in FY25 (April-September).
India's cotton yarn sector is poised for substantial revenue growth, with Crisil Ratings forecasting a 7-9% increase in FY26. In FY25, the total amount of raw silk production stood at 41,121 metric tonnes (MT).
The government is planning to set up 12 new industrial parks and 5-6 mega textile parks, announced by Minister of Commerce and Industry Mr. Piyush Goyal. He also urged the private sector to capitalize on these initiatives.
Ministry of Textiles has sanctioned 19 research projects totaling approximately Rs. 21 crore (US$ 2.52 million) across various domains of Technical Textiles under the National Technical Textiles Mission.
The Gross Value Added (GVA) is expected to see a consistent growth rate of 9% during the period 2021 - 2028.
According to the Cotton Association of India (CAI), the total cotton supply till end of the cotton season 2025-26 (i.e. upto 30th September 2026) is estimated at 410.59 lakh bales of 170 kgs. The cotton exports for 2025-26 crop year are estimated to be at 17 lakh bales of 170 kgs.
Total FDI inflows in the textiles (including Dyed, printed) sector stood at Rs. 33,512.66 crore (US$ 5,073.03 million) between April 2000-March 2026.
According to Apparel Export Promotion Council (APEC), significant opportunities exist to deepen collaboration between Indian and Japanese firms in the textiles sector, with Tokyo-based companies expressing keen interest to invest in India.
India's home textile sector is known for its rich traditions and craftsmanship, with various regions specializing in unique textile techniques and patterns. Gujarat is renowned for its vibrant and intricate embroidery, while Kashmir is famous for its luxurious woollen shawls and rugs. This diversity reflects India's extensive heritage and expertise in textile production.
India is actively pursuing diversification of its textile export markets, including engagement with the European Union and other emerging economies, in response to global trade challenges such as recent tariffs imposed by the US.
The India-UK FTA signed on July 24, 2025, grants duty-free access to 99% of India’s textile exports, removing the 10-12% tariff gap with rivals. This is expected to boost India's textile exports to the UK, currently at US$ 1.79 billion, by up to US$ 5 billion. The deal supports growth in hubs like Tirupur and traditional clusters, promotes joint ventures, and aims to double bilateral trade to US$ 112 billion by 2030.
The Textile Ministry’s allocation increased from Rs. 5,272 crore (US$ 623.46 million) in 2025-26 to Rs. 5,279.01 crore (US$ 597.34 million) in 2026-27, reflecting the government’s continued focus on strengthening the textile sector, enhancing competitiveness, and supporting long-term industry growth.
The Union Budget 2026-27 allocates Rs. 405 crore (US$ 45.83 million) for the Production-Linked Incentive (PLI) Scheme for Textiles to support domestic manufacturing and exports in man-made fibre (MMF) apparel, MMF fabrics, and technical textiles.
The Government’s Rs. 10,683 crore (US$ 1.44 billion) PLI scheme is expected to be a major booster for the textile manufacturers. The scheme proposes to incentivise MMF (man-made fibre) apparel, MMF fabrics and 10 segments of technical textiles products.
Textile manufacturing activity strengthened in the first quarter of FY27, with the Manufacturing of Textiles Index rising to 136.4 in June 2026 from 120.0 in June 2025, registering a 13.7% year-on-year increase. The index averaged 136.3 during FY26 (April-June), representing a 14.3% increase over the corresponding period of the previous year.
In May 2026, the Prime Minister inaugurated the country's first operational PM MITRA Park at Warangal, Telangana. Developed at a project cost of Rs. 1,695.54 crore (US$ 191.87 million), the integrated textile park spans 1,327 acres and is expected to attract investments of over Rs. 6,000 crore (US$ 679 million) while generating more than 24,400 jobs across the textile value chain.
On February 2026, the Ministry of Textiles announced that the PM MITRA Park in Tamil Nadu allotted 190.44 acres to 23 investors, unlocking committed investments of nearly Rs. 2,192 crore (US$ 248.03 million) and potential creation of 15,000 jobs across yarn, fabric, garment, and technical textile segments.
On January 2, 2026, the Government extended the deadline for fresh applications under the Production-Linked Incentive (PLI) Scheme for Textiles until March 31, 2026, to encourage additional investments in MMF apparel, MMF fabrics, and technical textiles manufacturing.
On December 9, 2025, the Government stated that the five-year Cotton Mission would focus on developing climate-smart, pest-resistant, and high-yielding cotton varieties, including extra-long staple (ELS) cotton, to strengthen domestic cotton productivity and reduce import dependence.
On December 5, 2025, the Government reported that a total of 168 projects had been approved under the National Technical Textiles Mission (NTTM), including 79 research projects covering speciality fibres, geotextiles, agro-textiles, and smart textiles to strengthen India’s technical textiles ecosystem.
According to ICRA, Indian apparel exporters are expected to see revenue grow by 9-11% in FY26. This will be driven by higher sales volumes and prices, supported by the "China Plus One" strategy and importers needing to restock inventory.
As of February 2026, the Government continued development of seven PM MITRA Parks aimed at creating integrated textile manufacturing ecosystems with world-class infrastructure to reduce logistics costs and enhance global competitiveness of India’s textile sector.
The Samarth Scheme, extended for FY25 and FY26 with a Rs. 495 crore (56.6 million) budget aims to train 3 lakh people in textile skills. It is demand-driven, placement-focused, covers the entire textile value chain except spinning and weaving, and supports job creation and productivity enhancement.
The Indian government wants to establish 75 textile hubs, similar to Tiruppur, which will greatly increase employment opportunities while promoting the export of textile products and ensuring the use of sustainable technology.
For the export of handloom products globally, the Handloom Export Promotion Council (HEPC) is participating in various international fairs/events with handloom exporters/weavers to sell their handloom products in the international markets under the National Handloom Development Programme (NHDP). Alongside, the Ministry of Textiles has also been implementing Handloom Marketing Assistance (HMA), a component of the National Handloom Development Programme (NHDP) all across India. HMA provides a marketing platform to the handloom weavers/agencies to sell their products directly to the consumers and develop and promote the marketing channel through organizing expos/events in domestic as well as export markets.
To support the handloom weavers/weaver entrepreneurs, the Weaver MUDRA Scheme was launched to provide margin money assistance at 20% of the loan amount subject to a maximum of Rs. 10,000 (US$ 134.22) per weaver. The loan is provided at an interest rate of 6% with credit guarantee of three years.
The new Economic Cooperation and Trade Agreements with Australia and the UAE will open multiple opportunities for textiles and handloom. Indian textile exports to Australia and the UAE will now face zero duties, and the government is expecting that soon, Europe, Canada, the UK and GCC countries would also welcome Indian textile exports at zero duty.
Top players in the textiles sector are attaining sustainability in their products by manufacturing textiles that use natural recyclable materials.
MoU signed at Bharat Tex 2024 between Textiles Committee, Government e-Marketplace, and Standing Conference of Public Enterprises to promote upcycled products made from textiles waste and scrap.
India’s textile sector is poised for a transformative decade, driven by strong domestic demand, rising global opportunities, and supportive government initiatives. With expanding technical textiles, growing export potential, and sustained innovation, the industry is set to play an even greater role in powering India’s economic growth and strengthening its position as a global textile leader.
References: Ministry of Textiles, Indian Textile Journal, Department of Industrial Policy and Promotion, Press Information Bureau, News articles
