New Delhi: India’s textile sector witnessed a significant rise in investments and exports in 2025, driven by government incentive programmes and policy reforms aimed at improving ease of doing business, according to the Ministry of Textiles.
A major boost came from the approval of seven PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks, designed to provide world-class infrastructure and plug-and-play facilities. The scheme involves an outlay of ₹4,445 crore over seven years, up to 2027–28. The parks are being developed in Virudhnagar (Tamil Nadu), Warangal (Telangana), Navsari (Gujarat), Kalaburagi (Karnataka), Dhar (Madhya Pradesh), Lucknow (Uttar Pradesh), and Amravati (Maharashtra).
So far, memoranda of understanding with an expected investment potential exceeding ₹27,434 crore have been signed. Land acquisition for all seven parks has been completed and transferred to the respective special purpose vehicles. Following site approvals by the Centre, state governments have initiated infrastructure projects worth ₹2,590.99 crore to develop facilities up to the park gates.
The government has also rolled out the National Technical Textiles Mission (NTTM) with an outlay of ₹1,480 crore, focusing on research, market development, education, and export promotion. Extended until March 31, 2026, the mission aims to increase the use of technical textiles across national programmes and strategic sectors.
Textiles and apparel exports, including handicrafts, reached $37.8 billion in 2024–25, registering a 5 per cent year-on-year growth and generating a trade surplus of $28.2 billion. Traditional markets such as the US, the EU, and the UK accounted for 55 per cent of exports, while emerging markets including Bangladesh, the UAE, Sri Lanka, Australia, and Canada contributed 20 per cent.
With more than 500 districts across 33 States and Union Territories actively involved, the Ministry has set an ambitious Vision 2030 target of $100 billion in textile exports. The strategy focuses on deeper trade partnerships, market diversification, and increased emphasis on innovation and sustainability, reinforcing India’s “Bharatiya Vastra Shakti” as a symbol of resilience and global competitiveness.
Recent GST rationalisation has further supported the sector. The GST rate on readymade garments and made-ups has been reduced to 5 per cent for items priced up to ₹2,500 per piece, compared to the earlier threshold of ₹1,000. GST on man-made fibres and yarns has been cut from 18 per cent to 5 per cent, while the rate on carpets and floor coverings has been lowered from 12 per cent to 5 per cent.
Additionally, GST has been reduced from 12 per cent to 5 per cent on 36 handicraft items, including cotton rugs and handwoven carpets under HS 5705. The move is expected to benefit artisans, strengthen rural livelihoods, and preserve India’s craft heritage.
In the area of innovation, 168 R&D projects in specialty fibres and advanced applications—covering carbon fibre, aramid, alternative materials, composites, and machinery—have been approved with a total outlay of ₹520 crore.
Under the production-linked incentive (PLI) scheme for textiles, 74 applications have been selected, involving a proposed investment of ₹28,711 crore. These projects are expected to generate a turnover of ₹2.16 lakh crore and create employment for over 2.59 lakh people, with participating companies already initiating investments.
The Textiles Trade Promotion (TTP) division has played a key role in expanding India’s global presence by monitoring export performance through 11 Export Promotion Councils. In 2024, India emerged as the world’s sixth-largest exporter of textiles and apparel, with the sector contributing 8.63 per cent to the country’s total exports and accounting for 4.1 per cent of global trade.
The cotton sector continues to remain central to India’s textile economy, supporting nearly 6 million farmers and 40–50 million people across the value chain. During the 2024–25 cotton season, the Cotton Corporation of India procured 525 lakh quintals of seed cotton—equivalent to 100 lakh bales—under minimum support price operations, disbursing ₹37,450 crore to farmers. This covered 38 per cent of market arrivals and 34 per cent of national production.
The government’s handloom initiatives have also strengthened the sector through marketing, welfare, and raw material support. More than 300 marketing events were organised, 12 Handloom Producer Companies were formed, and six Craft Handloom Villages were established, with two more under development to link craft promotion with tourism.
Under the Weavers’ MUDRA Scheme, 11,544 artisans accessed institutional credit, while social security coverage expanded with 2.35 lakh enrolments, further reinforcing the sustainability of India’s traditional textile ecosystem.