India’s Textile Market To Reach US$ 350 Bn By 2030
India’s textile industry is expanding rapidly, with textile exports projected to reach US$ 65 billion by the financial year 2025-26, according to Invest India. The country’s textiles production for domestic and export markets is expected to grow at a compound annual growth rate (CAGR) of 10%, reaching US$ 350 billion by 2030. This growth is based on the Indian textile and apparel market size of US$ 165 billion in 2022, comprising a US$ 125 billion domestic market and US$ 40 billion in exports.
Invest India attributes this growth to PM Modi’s “fibre-to-fashion” vision, which aims to enhance India’s competitiveness in the global market while boosting local technology and capabilities. India has also become the second-largest producer of personal protective equipment (PPE) globally, with over 600 certified companies in a market set to exceed US$ 92.5 billion by 2025, up from US$ 52.7 billion in 2019. The textile industry is a significant employment driver, directly employing 45 million people and supporting another 100 million in related sectors.
India is the world’s largest cotton producer, contributing 23% of global production, with the highest area under cultivation at 39%. Cotton is vital for the livelihood of 6.5 million farmers, providing a strong raw material base for the textile industry.
Key factors driving growth include world-class infrastructure, focus on technical textiles driven by demand from sectors such as automotive, healthcare and infrastructure, and the availability of raw materials and skilled labour. The Indian government’s Production Linked Incentive (PLI) Scheme, with an allocation of Rs 10,683 crore, aims to boost the production of man-made fibre apparel and technical textiles. The scheme has approved 64 applications, representing a proposed investment of Rs 19,798 crore, a projected turnover of Rs 1,93,926 crore and the creation of 2,45,362 jobs. This initiative has attracted significant foreign direct investment (FDI), with India receiving US$ 4.47 billion in FDI in textiles from April 2000 to March 2024.
India is a global leader in textiles and apparel, contributing 2.3% to the country’s GDP, 13% to industrial production and 12% to exports, with a 4% share in the global textile and apparel trade.
