Textile Industry in India 2025

India's textile industry has a long and historic legacy, tracing back to the country's earliest times. It has played an important role in the country's economic growth, offering employment and income to millions of people. Additionally, the sector has also been a significant contributor to foreign exchange earnings, strengthening its position in the global market.

Textile Industry Historical Background

The origin of textile production in India can be traced back to the Indus Valley Civilization, where cotton was spun and woven into fabric cloth. Archaeological excavations at Indus Valley sites have uncovered fragments of cotton fabric that are believed to be among the oldest surviving examples of textile production in the world.

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Current Scenario of the Textile Industry

With a per capita income of $2,350 and the world second-largest working population, boasting a median age of 28, India's textile industry plays a very important role in knitting the tapestry of dynamism and growth. Holding about 4.5% share in the global textile and apparel trade, the sector benefits from a rich range of fabrics and deep-rooted craftsmanship. India can easily produce the complete textile value chain and export these products to more than a hundred countries. The industry employs approximately 45 million people, manufactures about 22,000 million garments annually, and is projected to reach $350 Billion.

PM MITRA Park Scheme

With the dramatic changes in the textile sector, the government has launched the PM MITRA Park Scheme, allocating ₹ 4,445 Crore, to establish an integrated textiles value chain from spinning to manufacturing in a single location. In line with its growth vision, India's textile market currently ranks 6th in the world of exporting textiles, with the government aiming to boost its growth rate to 15-20% in the coming years. It also plays an important role in linking agriculture and industry by supporting the cultivation of cotton, silk, and other natural fibres, thereby bridging the gap between the two.

Cotton Branding – Kasturi Cotton

The government of India has recently introduced many initiatives to boost cotton production. One notable effort is Kasturi Cotton, launched by the Ministry of Textiles, the first-of-its-kind branding, traceability, and certification program implemented in collaboration with the Government of India, trade bodies, and industry stakeholders.

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This initiative brings together farmers, ginning units, spinning mills, processing houses, weaving units, garmenting units, home textile manufacturers, and even retailers and brands, to promote the value of Indian cotton in domestic as well as international markets.

Incentive Schemes for Manufacturing

Additionally, the government has rolled out the Production-Linked Incentive Scheme to promote the manufacturing of MMF apparel, MMF fabrics, and technical textile products in India. To enhance the skills of the workforce in the textile sector, the Samarth Scheme has been introduced under a comprehensive skill development framework, aiming to create sustainable livelihoods.

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Why Invest in Textile & Apparel

Robust Ecosystem

India has a robust and complete textile ecosystem which covers the entire value chain from raw materials to finished products.

Top-class Infrastructure

India focuses on developing world-class infrastructure to support the textile industry. For instance, the PM MITRA scheme aims to set up seven integrated textile parks to establish India as a global hub for textile manufacturing and exports. 

Young Workforce

India has the world's largest and youngest workforce, with a strong pool of skilled and semi-skilled labor, which gives an advantage.

Growth Potential

India's textile industry is projected to expand in the coming years. By 2030, its market size will reach $350 billion.

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Strong Policy Support

India has a dedicated support system from central as well as state governments, along with attractive incentives.

Growth of the Textile Industry in India

The Indian textile industry saw rapid growth during the British colonial period, especially with the introduction of new technologies and marketing methods. This industry continued even after the post-independence era, with the help of the government. Today, the textile sector is one of India's key industries, playing one of the major contributions in the country's economy.

Government Incentives & Schemes for Textile Industry

The Indian textile industry enjoys support from various government incentive programs aimed at increasing production, exports, and job creation. Notable initiatives include the Production Linked Incentive (PLI) Scheme for Textiles, PM MITRA. Apart from this, Integrated Textile Parks (SITP), and the Central Taxes and Levies RoSCTL. These schemes provide financial support, infrastructure development assistance, and tax rebates to enhance the sector's competitiveness. 

Government Policy in Textile

The Indian textile industry is supported by a variety of policies and schemes designed to drive growth, enhance competitiveness, and encourage sustainability. Major initiatives include the National Textile Policy, the National Technical Textiles Mission, and programs such as Powertex India and Yarn Supply Scheme. These measures emphasise infrastructure development, export promotion, skill enhancement, and the adoption of eco-friendly manufacturing practices.

Conclusion - Textile Industry

India’s textile industry is one of the biggest industries in the world. It has a complex value chain from raw materials to the final product. With government support, advanced infrastructure, and a skilled workforce, India stands apart from others. The country is targeting a market size of $350 billion by 2030.