The textile and apparel industry is one of the largest contributors to India’s economy providing employment to millions and generating substantial foreign exchange earnings.

With strong policy support, infrastructure development, and a skilled workforce, India has emerged as a preferred investment destination in the global textile sector. The Make in India initiative, launched in 2014, has particularly played a crucial role in positioning India as a global textile manufacturing and export hub.

Overview of India’s textile industry

The textile and apparel industry contributes 2.3% to our GDP, 13% to industrial production, and 12% to exports. India exported textile items worth US$ 34.4 billion in 2023-24, US$ 36.61 billion during 2024-25 & is estimated to export approximately worth US$ 37–38 billion. Apparel constituted 42% of the export basket, followed by raw materials/semi-finished materials at 34% and finished non-apparel goods at 30% during 2023-24. During 2024-25, apparel constituted 43.4 %, while FY 2025–26 trends suggest that apparel exports remained comparatively resilient despite overall softness in textile exports due to global demand slowdown and US tariff effects.

The Industry is the second largest employment generator after agriculture with over 45 million employed directly including many women and the rural population during 2023-24, 45-46 million during 2024-25 & estimated to provide employment to 46 million people during 2025-26.

Nearly 80% of the industry’s capacity is spread across Micro, Small and Medium Enterprises (MSME) clusters in the country.

The sector also has perfect alignment with the Government’s overall objectives of:

1. Make in India;

2. Skill India;

3. Women’s Empowerment;

4. Rural Youth Employment, and;

5. Inclusive growth.

Projected growth scenario of India’s textile industry

The Indian textile industry is projected to witness strong medium- and long-term growth, driven by:

1. Rising domestic consumption;

2. Export expansion;

3. Technical textiles;

4. Sustainability trends, and;

5. Government support schemes such as:

i. PM Mega Integrated Textile Regions and Apparel Parks (PM MITRA),

ii. Production Linked Incentive Scheme (PLI), and;

iii. Technology Upgradation Fund Scheme (TUFS).

The Indian textile market currently ranks fifth globally. The government is actively working to accelerate this growth to a rate of 15-20% over the next five years.

The industry produces about 22,000 million pieces of garments per year with the market size projected to reach US$ 350 billion by 2030 from the current $174 billion.

Impact of Make in India initiative on the textile industry

The Make in India initiative, launched in 2014 has had a significant impact on India’s textile and apparel sector by:

1. Encouraging manufacturing growth;

2. Attracting investment;

3. Improving infrastructure;

4. Increasing exports, and;

5. Generating employment.

The Make in India initiative has catalysed textile manufacturing and exports through key policy interventions, enhanced infrastructure, and incentives.

Make in India Scheme has encouraged expansion across:

1. Spinning;

2. Weaving;

3. Processing;

4. Garment manufacturing, and;

5. Technical textiles.

India has strengthened its position as:

1. One of the world’s largest cotton producers;

2. The second-largest textile manufacturer, and;

3. A major apparel exporter.

Textile and apparel production has steadily increased due to policy support and investment incentives.

Make in India has strengthened export competitiveness of the Industry through:

1. Modernisation;

2. Integrated textile parks;

3. Logistics improvement, and;

4. Production-linked incentives.

India’s textile and apparel exports rose to around US$ 36–37 billion in FY 2024–25 with the target of US$ 100 billion by 2030.

Challenges faced by the Textile Industry despite strong projections:

1. Competition from Bangladesh, Vietnam, and China;

2. Volatility in cotton prices;

3. Compliance and sustainability requirements;

4. High logistics and power costs; and;

5. Dependence on Western markets for exports.

Overall Outlook with regards to the Textile Industry

India’s textile industry is expected to transition from a largely raw-material and low-value export base toward:

1. Higher value-added apparel;

2. Technical textiles;

3. Sustainable manufacturing, and;

4. Integrated global supply chains.

By 2030, the sector is projected to become one of India’s largest manufacturing and employment engines with exports potentially tripling from the current level.

The Ministry of Textiles has publicly reiterated that Indian textiles and apparel is projected to grow at a 10% CAGR to reach $350 billion by 2030, with exports expected to reach $100 billion. India also ranks among the top five global exporters in several textile categories.

Positive Outcomes of the Make in India initiative include:

1. Improved global competitiveness;

2. Expansion of apparel manufacturing;

3. Better infrastructure and technology adoption;

4. Increased export orientation;

5. Greater formalisation of the textile value chain, and;

6. Rising investment in sustainable and synthetic textiles.

Role played by FDI (Foreign Direct Investment) in strengthening the Textile Industry

FDI plays a major role in strengthening the textile industry by improving technology, exports, productivity, and employment. For countries like India attracting sustainable and innovation-driven textile investment is important for becoming a global manufacturing hub, while balancing environmental and social responsibilities.

FDI in Textiles helps:

1. Increased productivity;

2. Better infrastructure;

3. Global market access;

4. Higher product quality;

5. Growth of MSMEs through supplier networks, and;

6. Development of technical textiles and sustainable fabrics.

India is one of the world’s largest textile producers with strengths in cotton, yarn, garments, technical textiles, and handicrafts. The government allows:

100% FDI under the automatic route in textiles and apparel manufacturing;

The FDI policy has helped attract global brands and manufacturers into:

1. Spinning and weaving;

2. Garment manufacturing;

3. Technical textiles;

4. Retail fashion, and;

5. Textile machinery.

Epilogue

The Make in India initiative has significantly enhanced India’s position in global textile manufacturing and exports through targeted policies, infrastructure development, and investment promotion. With sustained efforts, India is poised to become a global textile leader driving economic growth and employment generation.

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