Textile Industry & Market Growth in India

The market for Indian textiles and apparel is projected to grow at a 11.98% CAGR to reach US$ 646.96 billion by 2033.

Advantage India

Robust
Demand

*The Indian technical textiles market is expected to expand to US$ 23.3 billion by 2027, driven by increased awareness of goods and higher disposable incomes.

*Cotton production in India is projected to reach 7.2 million tonnes (~43 million bales of 170 kg each) by 2030, driven by increasing demand from consumers.

*In FY26, the total exports of textiles and apparel (including handicrafts) stood at US$ 35.52 billion, with Ready-Made Garments (US$ 15.77 billion), Cotton Textiles (US$ 10.25 billion), and Man-Made Textiles (US$ 5.23 billion) as the key contributors.

Robust economic growth icon

Competitive
Advantage

*Abundant availability of raw materials such as cotton, wool, silk and jute.

*India enjoys a comparative advantage in terms of skilled manpower and in cost of production relative to other major textile producers.

*Union Minister of Commerce and Industry, Mr. Piyush Goyal, emphasised that the India–United Kingdom (UK) Free Trade Agreement (FTA) opens transformative opportunities for textiles, leather, and footwear sectors, enhancing competitiveness and visibility in the UK market.

Attractive investment icon India

Policy
Support

*100% FDI (automatic route) is allowed in the Indian textile sector.

*The Union Budget 2026–27 allocated Rs. 5,279.01 crore (US$ 597.34 million) to the Ministry of Textiles, broadly maintaining funding levels compared to the previous year. It also continues to support the five-year Cotton Mission, aimed at boosting cotton productivity, reducing import dependence, and strengthening MSME-driven textile 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.

India policy support icon

Increasing
Investments

*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.

Competitive advantage icon India
Last updated: Sep, 2026

Major Textiles hubs in India  

  • NCR
  • Gujarat
  • Maharashtra
  • Uttar Pradesh
  • West Bengal
  • Tamil Nadu
  • Madhya Pradesh
  • Rajasthan
Textiles Cluster 11 03 2022

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