Sat Mar 15 2025
India has been a global textile powerhouse for centuries, dating back to the Indus Valley Civilization. Ancient Indian textiles, such as muslin from Bengal, silk from Varanasi, and block-printed cotton fabrics, were highly sought after in international trade. During colonial rule, British policies suppressed the Indian textile industry, but post-independence, the sector regained its strength through modernization, government support, and industrial growth.
Today, the Indian textile industry is one of the largest globally, contributing 2.3% to India’s GDP and employing over 45 million people directly, with another 55 million involved indirectly (Textile World, 2025). The sector continues to integrate traditional craftsmanship with cutting-edge technology, making it competitive in the modern global economy.
India is the sixth-largest exporter of textiles and apparel worldwide, holding a 3.9% share in global trade (DD India, 2025). The major textile categories include:
a) Ready-Made Garments (RMG)- India’s largest textile export category, accounting for 41% of total textile exports, valued at $8.73 billion in the first half of FY 2024-25. b) Cotton Textiles- Comprising 33% of textile exports with a market size of $7.08 billion. c) Man-Made Textiles- Covering 15% of exports, worth $3.1 billion. d) Silk and Wool Textiles- Notable for high-end fashion and ethnic wear; silk exports surged by 40% in 2024, while wool exports declined by 19%. e) Technical Textiles- Used in industries like healthcare, defense, and agriculture. The National Technical Textiles Mission (NTTM) is accelerating India’s presence in this sector.
Despite global uncertainties, India’s textile exports have shown resilience. US & EU account for 47% of total exports, RMG exports grew by 12%, cotton textiles by 1%, and man-made textiles by 5% in 2024. Carpet exports increased by 12%, signaling growing global appreciation for Indian handmade products. India is also capitalizing on Free Trade Agreements (FTAs) with Australia, UAE, and the UK, boosting textile trade.
India is expanding its export footprint beyond traditional markets like the US and EU. The new high-potential markets include, UAE and Middle East- which is a key hub for high-end Indian fabrics, particularly Abayas and luxury textiles, Africa- where demand for Kitenge fabrics and printed cotton is growing rapidly, Latin America- which is emerging as a strong buyer of synthetic and blended fabrics, Russia and CIS Countries- where increasing demand for Indian-made winter wear and technical textiles.
The Indian government has launched several initiatives to increase textile exports: PM MITRA Textile Parks: Creating large-scale integrated textile hubs. Production Linked Incentive (PLI) Scheme: Encouraging investment in synthetic fibers and technical textiles. SAMARTH Skill Development Scheme: Upskilling the textile workforce for higher productivity. National Technical Textiles Mission (NTTM): Promoting innovation in technical fabrics. The Textile Export Promotion Council (TEPC) is playing a crucial role in facilitating quicker licensing and expanding global outreach for Indian manufacturers.
Indian textiles are experiencing increasing global demand due to: Sustainability Focus: India is a leader in eco-friendly and organic textiles. Price Competitiveness: India offers quality textiles at a lower cost than Western markets. Diversified Product Range: From luxury silk to mass-produced polyester, India caters to various markets. Customization & Digital Adoption: With AI-driven manufacturing and design innovations, Indian textile firms offer high customization, attracting more global buyers (Textile World, 2025).
China remains the dominant player in the global textile market, accounting for over 30% of global exports. However, India is emerging as a strong competitor by reducing dependence on cotton and increasing synthetic fiber production,by leveraging FTAs with Western countries. enhancing quality & design capabilities and moving towards high-value technical textiles. Sustainability & Ethical Practices is playing another significant role as global buyers are shifting towards India due to environmental concerns over Chinese production methods. Although, India still lags in supply chain efficiency and automation, but investments in digital manufacturing and infrastructure are helping bridge the gap.
Besides China, India faces competition from Bangladesh: Strong in low-cost apparel manufacturing, with preferential trade agreements with the EU. Vietnam: A rising exporter due to strong global investments and modernized factories. Turkey: Major exporter to Europe with high-quality textile production. Pakistan: Competitive in cotton textile exports but lacks India's diversified production. India is strategically positioning itself by moving up the value chain, focusing on premium segments such as organic textiles, luxury silk, and high-tech fabrics.
With a projected market value of $350 billion by 2030, India's textile industry is on a robust growth trajectory The sector is driven by:
✅ Rising global demand for sustainable and high-quality fabrics.
✅ Government incentives boosting domestic production and exports.
✅ Technological advancements making Indian textiles more competitive.
✅ Expanding trade agreements creating new export opportunities.
By leveraging digital innovations, enhancing quality, and maintaining cost efficiency, India is set to become a global textile export leader in the coming years. 🚀