India’s Textile Industry Targets US$ 350 Billion by 2030 as Exports Recover
- IBEF
- October 27, 2026
India’s textile industry expanded to nearly Rs. 16.79 lakh crore (US$ 190 billion) in FY26 and aims to reach Rs. 33.27 lakh crore (US$ 350 billion) by 2030, driven by domestic demand, manufacturing investments and export opportunities, according to a report by Rubix Data Sciences. The sector remains a significant employment generator, while the Central Government is considering a five-year Textile Expansion and Employment (TEEM) Scheme with an outlay of Rs. 40,000 crore (US$ 4.21 billion) to modernise machinery, introduce advanced technologies and upgrade traditional textile clusters. Textile exports, including handicrafts, grew by 10.30% year-on-year during April–August 2026, following a 2.70% decline to Rs. 3.17 lakh crore (US$ 35.80 billion) in FY26. Imports increased by 17.10% to Rs. 84,835.2 crore (US$ 9.60 billion) in FY26, although exports remained nearly 3.7 times the value of imports. Readymade garments accounted for 44% of exports, while man-made fibre textiles contributed 15%.
Despite the recovery in exports, the industry faces rising input costs and international trade uncertainties. Cotton yarn prices increased by approximately 60% to Rs. 400 per kilogram in September 2026 from Rs. 250 per kilogram in early 2026, amid a decline in domestic cotton production to 290.91 lakh bales in the 2025-26 season. The government extended relief to mills through an exemption from the 11% cotton import duty until October 31, 2026. The United States remained India’s largest textile export destination in FY26, accounting for 31% of shipments, followed by the European Union at nearly 16%. However, exports to the US declined by around 7%, while shipments to major European markets increased by 9%. Manufacturers are diversifying export destinations to reduce market concentration. Meanwhile, investment proposals under the seven approved PM Mega Integrated Textile Region and Apparel Parks reached Rs. 68,590 crore (US$ 7.21 billion) by August 2026, supporting capacity expansion and modernisation.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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