India Textile Market

The India Textile Market is valued at USD 238.4 Billion in 2024 and is projected to reach a value of USD 475.9 Billion by 2035 at a CAGR (Compound Annual Growth Rate) of 6.50% between 2025 and 2035.

Key Highlights of India Textile Market

• Textile sector is contributing over 4% to Indias GDP and 14% to export earnings, making India the second-largest textile producer after China.
• The Indian government has implemented various initiatives to boost the textile sector to enhance production, exports, and sustainability.
• There is a growing demand for technical textiles, which are advanced fabrics made using cutting-edge technology on both natural and synthetic fibres.

India Textile Market Government Initiatives:

• The Indian government has implemented various initiatives to boost the textile sector to enhance production, exports, and sustainability. One of the significant measures, the Production Linked Incentive (PLI) Scheme, launched in 2017, has been instrumental in incentivizing textile manufacturing and exports. This scheme, which offers a one-time payment of up to 5% of the total export value to companies that meet specific criteria, such as increased exports over three years and adherence to safety, labour, and environmental standards, has already shown promising results, fostering a sense of optimism for the future of the sector.
• Additionally, the government supports the sector through various other measures. These include providing raw materials and credit at competitive rates, developing skills, and upgrading technology. Infrastructure support is also emphasized to create a conducive environment for growth.
• Export promotion policies and the allowance of 100% FDI under the automatic route further bolster the sector. The PLI Scheme has approved 64 applications with a proposed investment of INR 19,798 crore, a projected turnover of INR 1,93,926 crore, and the creation of 2,45,362 jobs.
• The governments commitment to the textile sectors growth is evident in its focus on training and skill development. Under the SAMARTH scheme, 43 new implementing partners were impanelled in July 2023, with a target of training 75,000 beneficiaries. This emphasis on skill development not only enhances the sectors productivity but also makes the workers feel valued and integral to its growth. To date, 1,83,844 beneficiaries have been trained across 1,880 centres, a testament to the governments dedication.
• Research and development are prioritized, with the government approving R&D projects worth USD 7.4 million in June 2023. In February 2023, a textile park was approved in Lucknow, and the Union Budget 2023-24 allocated Rs. 4,389.24 crore for the textile sector, including funds for technology upgradation and technical textiles.
• Other significant initiatives include the establishment of PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks and expanding the National Institute of Fashion Technology (NIFT). The government also targets increased textile exports through new trade agreements and aims to establish 75 textile hubs to promote sustainable technology and export growth.

Key Trends

1. The Indian textile industry is embracing a comprehensive sustainability model. This involves rethinking the entire value chain—from sourcing raw materials to production, supply chain management, and waste recycling—shifting from a linear to a circular operational model. This approach tackles both pre- and post-consumer waste, making sustainability a core focus.
2. There is a growing demand for technical textiles, which are advanced fabrics made using cutting-edge technology on both natural and synthetic fibres. These textiles, known for their durability, insulation, and heat resistance, are increasingly used in sectors like healthcare, automotive, construction, and security. The demand for such textiles is expected to rise significantly in the near future.
3. India is the worlds second-largest producer of man-made fibres, which are crucial for non-cotton and blended fabrics. Producing vast quantities of synthetic fibres and filaments, such as viscose and polyester, these materials offer flexibility, durability, and hydrophobic properties. They are essential for the textile industry’s ability to adapt to changing market conditions.
4. Quality has become more important than price for todays consumers. In garment manufacturing, this means a focus on durability, aesthetics, functionality, and adherence to standards. Manufacturers play a critical role in meeting these demands, as consumers prioritize value and reliability in their purchases.
5. Digital textile printing, especially dye sublimation printing, is revolutionizing the industry. This technology allows for efficient and creative application of colorants to fabrics, reducing waste and meeting market demands for vibrant, high-quality textile designs. Its adoption is rapidly increasing and is expected to continue growing as the technology evolves.

India Textile Market Export Overview:

Indias textile sector, one of the oldest and most significant industries, comprises numerous SMEs, particularly in home textiles and apparel. This sector is crucial, contributing over 4% to Indias GDP and 14% to export earnings, making India the second-largest textile producer after China. However, global retail sales have slowed due to high inflation and low consumer confidence. Additionally, India faces competition from Bangladesh and Vietnam, affecting its textile exports. Despite a government goal of reaching USD 50 billion in exports by 2030, recent data shows a decline in cotton yarn and textile exports.

The Indian government supports SMEs with schemes like EPCG, RoDTEP, and RoSCTL to boost international market expansion. Initiatives like the Mega Investment Textiles Parks (MITRA) and the Production Linked Incentive (PLI) Scheme aim to increase investment and create jobs, with seven new textile parks established in various states. Free Trade Agreements (FTAs) with countries like Sri Lanka, Singapore, and ASEAN members help reduce trade barriers, improve market access, and attract foreign investment. To enhance exports to developed nations, India needs to engage in dialogue with international counterparts, invest in design studios abroad, and address non-tariff barriers, while liberalizing labour laws and strengthening weaving and processing segments.

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India Textile Market Future Overview:

The future of the Indian textiles industry holds promise driven by robust domestic consumption and export demand. Initiatives to bolster the technical textile sector are underway, particularly in response to the increased need for PPE due to the pandemic. Government support through funding and machinery sponsorship is bolstering growth. Leading players are emphasizing sustainability by utilizing natural recyclable materials. The retail sector has witnessed substantial growth, propelled by rising consumerism and the entry of international giants like Marks & Spencer and Guess. Growth in textiles will be fuelled by rising household incomes and demand from various sectors such as housing and healthcare. Innovation and technology are reshaping textile manufacturing processes. Despite these opportunities, challenges such as competition from other countries, labour costs, and environmental concerns persist. Efforts to address these challenges are imperative, with a focus on sustainability and eco-friendly practices, including the adoption of sustainable fibres and internationally recognized certifications like GOTS and OEKO-TEX®.

India Textile Market - Competitive Landscape

Indias semiconductor market is experiencing rapid growth driven by increasing demand in electronics, automotive, and telecommunications. Key players include global giants like Intel, Samsung, and TSMC, along with local companies such as Vedanta-Foxconn and Tata Electronics. Government initiatives like "Make in India" and PLI schemes are fostering domestic manufacturing and R&D. Startups and SMEs are also emerging, contributing to innovation and competitiveness. Collaborations with foreign firms for technology transfer are enhancing capabilities. The competitive landscape is marked by a mix of established multinational corporations, ambitious local enterprises, and supportive government policies, positioning India as a significant player in the global semiconductor industry.

• In February 2024, Klüber Lubrication is expanding its Mysore facility with an investment of ₹142 crore (USD 17.04 mn), set to be operational by 2027. The state-of-the-art plant will not only enhance production, attain new certifications, and boost R&D, but also significantly improve service across the APAC region, thereby emphasizing sustainability and benefiting our stakeholders in the region.
• In March 2024, BASF is expanding its Ultramid and Ultradur production capacity by over 40 percent in Panoli and Thane, which will be operational in the second half of 2025. The strategic addition of the new Polyurethane Technical Development Centre in Mumbai underscores our commitment to market development. Spanning 2,000 sq. meters, the Centre offers advanced technical support and innovation opportunities, further enhancing our capabilities.
• In May 2024, Celanese opened two new facilities in India, the India Technical Centre in Silvassa and a Shared Service Centre in Hyderabad. The Technical Centre will support local and global customers with advanced application development and testing capabilities. The Shared Service Centre will enhance global support, focusing on collaboration and inclusion.
• In July 2023, The SAMARTH program employed 43 new implementing partners, and an additional training target of approximately 75,000 beneficiaries was allocated.
• In June 2023, the government approved research and development projects amounting to USD 7.4 million (Rs. 61.09 crore) in the textile sector.
• In February 2023, The Union government was permitted to set up a textile park in Lucknow on 1,000 acres.
• In February 2023, the total allocation to the textile sector was INR 4,389.24 billion, USD 536.4 billion, according to the Union Budget for 2023. Out of this, Rs. 900 crores (USD 109.99 million) are for the Amended Technology Upgradation Fund Scheme (ATUFS), Rs. 450 crores (USD 54.99 million for the National Technical Textiles Mission, and Rs. 60 cr (USD 7.3333 million) for the Integrated Processing Development Scheme.

The India Textile market can be categorized as Application, Material, and Process