India Textile Sector Industry & Trade Outlook

India’s textile industry reached nearly ₹16.79 lakh crore ($190 billion) in FY26 and is projected to grow to ₹33.27 lakh crore ($350 billion) by 2030, driven by domestic demand, manufacturing investments, and export opportunities, according to Rubix Data Sciences. To accelerate growth, the government is considering a five-year Textile Expansion and Employment (TEEM) Scheme with a ₹40,000 crore outlay to modernize machinery, adopt advanced technologies, and upgrade traditional clusters. After declining 2.70% in FY26 to ₹3.17 lakh crore ($35.80 billion), textile and handicraft exports rebounded 10.30% year-on-year during April–August 2026. Readymade garments accounted for 44% of exports, followed by man-made fiber textiles at 15%. Despite imports rising 17.10% to ₹84,835.2 crore, exports remained nearly 3.7 times higher, maintaining a strong trade surplus. However, the sector faces margin pressures from rising input costs and trade uncertainties. Cotton yarn prices surged nearly 60%, from ₹250 to ₹400 per kg by September 2026, amid lower domestic cotton production of 290.91 lakh bales. To ease costs, the government temporarily exempted cotton imports from the 11% duty until October 31, 2026. The US remained India's largest export market with a 31% share, followed by the EU at 16%, prompting manufacturers to diversify amid declining US shipments and 9% growth in major European markets. Meanwhile, investment proposals across seven approved PM MITRA Parks reached ₹68,590 crore by August 2026, supporting large-scale manufacturing integration and technological upgrades.