Advantage India
Robust
Demand
*Cotton production in India is projected to reach 7.2 million tonnes by 2030, driven by increasing demand from consumers.
*The market for Indian textiles and apparel is projected to grow at a 10% CAGR to reach US$ 350 billion by 2030, with exports expected to reach US$100 billion.
*The total exports during FY25 stood at Rs. 3,12,540 crore (US$ 36.61 billion), with RMG (44%), Cotton Textiles (33%), and Man-Made Textiles (13%) as key contributors.
Competitive
Advantage
*India enjoys a comparative advantage in terms of skilled manpower and in cost of production, relative to major textile producers.
*In June 2022, Union Minister of Commerce and Industry, Mr. Piyush Goyal, stated that the Indian government wants to establish 75 textile hubs in the country.
*The sector provides employment to over 45 million people and produces about 22,000 million pieces of garments per year.
Policy
Support
*100% FDI (automatic route) is allowed in textiles.
*The Union Budget 2025-26 allocated Rs. 5,272 crore (US$ 607 million) for the Ministry of Textiles, a 19% increase from the previous year. It also introduced a five-year Cotton Mission to boost cotton productivity, reduce import dependence, and enhance MSME-driven textile competitiveness.
*In current cotton season 2024-25, up to March 31, 2025, Government of India, through its nodal agency, the Cotton Corporation of India Ltd. (CCI) under Ministry of Textiles has successfully procured 525 lakh quintals of seed cotton, equivalent to 100 lakh bales, under Minimum Support Price (MSP) operations. This procurement accounts for 38% of the total cotton arrivals of 263 lakh bales and 34% of the estimated total cotton production of 294.25 lakh bales in the country.
Increasing
Investments
*In order to attract private equity (PE) and employee more people, the government introduced various schemes such as the Scheme for Integrated Textile Parks (SITP), Technology Upgradation Fund Scheme (TUFS) and Mega Integrated Textile Region and Apparel (MITRA) Park scheme.
*Total FDI inflows in the textiles sector stood at Rs. 29,291.05 crore (US$ 4.59 billion) between April 2000-December 2024.
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