India’s booming textile industry is set to soar to new heights, with a projected total export of $65 billion by FY26, as per Invest India. The country’s Prime Minister, Narendra Modi, has laid out a bold vision with the ‘#fibretofashion’ initiative, propelling the textile industry to be a dominant player on the global stage while empowering local players with technology and expertise.
Invest India reported that the domestic textile market, currently valued at around $165 billion, is divided into $125 billion from domestic sales and $40 billion from exports. Projections suggest that the market will witness a remarkable growth trajectory, reaching $350 billion by 2030 at a compound annual growth rate (CAGR) of 10 percent.
Alongside its textile prowess, India has emerged as the world’s second-largest manufacturer of personal protective equipment (PPE). The country boasts over 600 certified PPE-producing companies and is well-positioned in a market anticipated to surpass $92.5 billion by 2025.
The textile industry plays a pivotal role in India’s economy, providing direct employment to 45 million individuals and supporting an additional 100 million jobs in related sectors. Cotton cultivation alone sustains around 6 million farmers and 40-50 million people involved in processing and trading activities.
Various factors contribute to the industry’s growth, including India’s robust infrastructure, a burgeoning focus on technical textiles driven by demands from sectors like automotive, healthcare, and infrastructure, and the availability of raw materials and skilled labor force. Competitive manufacturing costs and a thriving retail landscape, including e-commerce, further bolster the sector’s attractiveness.
The Indian government has introduced the Production Linked Incentive (PLI) Scheme, committing Rs 10,683 crore to ramp up the production of man-made fiber (MMF) apparel, MMF fabrics, and technical textiles. Notably, 64 applications have been approved under the scheme, with a proposed investment of Rs 19,798 crore, projected turnover of Rs 1,93,926 crore, and expected employment opportunities for 2,45,362 individuals. Key investments are earmarked for states like Madhya Pradesh, Uttar Pradesh, and Rajasthan.
Furthermore, Foreign Direct Investment (FDI) in the textile sector remains robust, with 100 percent FDI permitted under the automatic route. Cumulatively, India has attracted $4.47 billion in FDI in textiles, including dyed and printed fabrics, from April 2000 to March 2024.
As one of the world’s leading textile and apparel producers, India contributes approximately 2.3 percent to the country’s GDP, 13 percent to industrial production, and 12 percent to exports. The country holds a significant 4 percent share of the global textile and apparel trade, underscoring its substantial presence in the international market.
The Indian textile landscape is vast and diverse, as the country ranks second globally in cotton and jute production and silk manufacturing. Impressively, India accounts for 95 percent of the world’s hand-woven fabric, showcasing its rich heritage and craftsmanship in textiles.
