India Textile Manufacturing Market Report 2026-2034: Industry Size, Share, Growth, Trends and Outlook

According to IMARC Group's report titled "India Textile Manufacturing Market Size, Share, Trends and Forecast by Process Type, Textile Type, Equipment and Machinery, and Region, 2026-2034" the report offers a comprehensive analysis of the industry, including market share, growth, trends, and regional insights.

India Textile Manufacturing Market Outlook

The India textile manufacturing market size reached USD 133.6 Billion in 2025. The market is projected to grow at a compounded annual growth rate (CAGR) of 3.99% during the forecast period from 2026 to 2034, reaching a value of USD 192.0 Billion by 2034. This growth is driven by government incentives such as the PLI scheme, rising exports, increased domestic demand, technological advancement, synthetic fiber adoption, and sustainability-focused manufacturing.

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India Textile Manufacturing Market Key Takeaways

• Current Market Size: USD 133.6 Billion in 2025
• CAGR: 3.99% during 2026-2034
• Forecast Period: 2026-2034
• Government initiatives like the Production Linked Incentive (PLI) scheme and PM MITRA parks are accelerating market growth.
• Rising domestic consumption and growing exports are significant market drivers.
• Technological adoption including automation and digitalization enhance efficiency and scalability.
• Sustainability initiatives focus on eco-friendly textiles and circular economy practices.
• Foreign investment and e-commerce expansion further boost the industry.

India Textile Manufacturing Market Growth Factors

Textile manufacturing is one of the largest sectors in the industrial economy of India and a customary and rapidly modernizing and globalizing sector, covering the whole supply chain from fiber production and yarn manufacture, through weaving, dyeing and finishing, right through to clothing and technical textiles. This much wider base forms one of the largest employment generators in the country, directly and indirectly providing employment to millions in urban and rural areas across India.

The industry also meets domestic demand, and is one of India's largest export industries, providing a variety of clothing and fabrics such as silk and cotton, hand looms, technical textiles and specialty products to users globally. India also possesses a flexible and competitive structure that is supported by a wide resource base of natural fibers like cotton and silk as well as the growing capability of the synthetic and blended fabric manufacturing industry. The government has supported this growth by taking initiatives and formulating policies to develop the manufacturing infrastructure and production capacity as well as to promote technology, exports, and value chain integration.

Various policies like textile parks and modernization schemes are being followed to make the industry more competitive and efficient. Since textiles play a major role in industrial production and foreign exchange earnings, this sector is a vital part of the national development policy. Ultimately, India's textile manufacturing sector has become a leading textile manufacturing base offering a mix of textile knowledge, customary infrastructure, and new scale and innovative investment which is impacting labor, industrial diversification and international trade.

Read the full report to explore comprehensive insights, trends, and opportunities shaping the India Textile Manufacturing Market: https://www.imarcgroup.com/india-textile-manufacturing-market

India Textile Manufacturing Market Trends

The India textile manufacturing industry has been witnessing several trends. These trends include changing consumer preferences, technology advancements, globalization of supply chains, and increasing demand for sustainable and ecological textiles. To address concerns over the environmental and social impact of the textile industry, several manufacturers have begun using low-impact dyes, and implementing the use of recycled and bio-based materials. Overall, the trend for sustainability is supported by the demand for transparency and traceability in textile production.

Digital transformation is another trend in textile manufacturing with smart automation, IoT-enabled machines and data-driven production plans used to optimize production efficiency, reduce waste and improve quality assurance in the process. This has enabled manufacturers to reduce lead-times and compete with worldwide markets on price and innovation. Developments in technical textiles, which are textiles that have been engineered to have specific performance characteristics, are also changing the market. The presence of textiles in automobiles, buildings, hospitals, and sportswear shows that the industry has wider interests beyond clothing and household textiles. There is also an increasing meeting of minds between artisans in customary textile-producing areas and modern designers increasingly seeking to work in new ways.

Heritage textiles are making gradual inroads into fashion markets, while the export sector is looking to diversify as geopolitical factors and trade policy changes influence sourcing within major global markets. Indian manufacturers are looking further afield with an expanded target set of international markets and niche products so as to weather global headwinds. They have been described as an industry pivoting away from previous production models and towards a future based on sustainability, technology, and global competitiveness.

India Textile Manufacturing Market Recent Developments & News

• In February 2025, South Eastern Coalfield Limited (SECL) and Apparel Training & Design Centre (ATDC) signed an MoU to train 400 candidates from economically weaker sections, enhancing employment in textile production.
• Trident Group allocated ₹1,000 crore for a greenfield expansion in FY26 focusing on sustainability and modernization, emphasizing India's market shift to premium quality exports.
• In March 2025, CottonConnect partnered with the Indian government to promote premium Kasturi Cotton, launching a pilot in Gujarat or Maharashtra to boost sustainability and supply chain strength.
• Primus Partners, with Maharashtra government, unveiled a roadmap for a zero-waste textile industry by 2047 targeting waste worth USD 3.5 Billion over five years.
• Shein re-entered the Indian market in February 2025 through Reliance Retail's Nextgen Fast Fashion, promoting locally manufactured products and MSME exports.

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India Textile Manufacturing Market Segmentation

Process Type Insights:

• Spinning
• Weaving
• Knitting
• Finishing
• Others

Textile Type Insights:

• Fiber
• Yarn
• Fabric
• Garments
• Others

Equipment and Machinery Insights:

• Simple Machines
• Automated Machines
• Console/Assembly Line Installations

Regional Insights

• North India
• South India
• East India
• West India

India Textile Manufacturing Market Key Players

The report offers an in-depth examination of the competitive landscape, including market structure, key player positioning, leading strategies for success, a competitive dashboard, and a company evaluation quadrant.

Key Questions Answered in This Report

Q1. How big is the textile manufacturing market in India?
A1. The textile manufacturing market in India was valued at USD 133.6 Billion in 2025.

Q2. What is the future outlook of the textile manufacturing market in India?
A2. The India textile manufacturing market is projected to exhibit a CAGR of 3.99% during 2026-2034, reaching a value of USD 192.0 Billion by 2034.

Q3. What are the key factors driving the India textile manufacturing market?
A3. India's textile manufacturing sector grows on the back of government incentives like PLI and PM MITRA parks, rising domestic consumption, new tech adoption, and a sustainability push. Shifting global sourcing patterns and trade deals open export avenues. Automation, eco-friendly practices, and demand for affordable fashion keep the industry competitive and expanding.

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