India’s textiles and apparel sector recorded a sharp surge in investment and exports during 2025, driven by a combination of government incentive schemes, tax rationalisation and reforms aimed at improving ease of doing business.
A major catalyst has been the approval of seven PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks, envisaged as world-class textile manufacturing hubs with plug-and-play infrastructure. The parks are being developed in Virudhnagar (Tamil Nadu), Warangal (Telangana), Navsari (Gujarat), Kalaburagi (Karnataka), Dhar (Madhya Pradesh), Lucknow (Uttar Pradesh) and Amravati (Maharashtra), with a total outlay of Rs 4,445 crore over seven years up to 2027-28, according to the Ministry of Textiles.
So far, memoranda of understanding with an expected investment potential of over Rs 27,434 crore have been signed. Land acquisition for all seven parks has been completed and handed over to special purpose vehicles, while infrastructure works worth Rs 2,590.99 crore to provide connectivity and facilities up to the park gates have commenced across all states.
Complementing this initiative, the government has rolled out the National Technical Textiles Mission (NTTM) with an outlay of Rs 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 in national programmes and strategic sectors.
India’s textiles and apparel exports, including handicrafts, stood at $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 destinations including Bangladesh, the UAE, Sri Lanka, Australia and Canada contributed about 20 per cent.
With over 500 districts across 33 States and Union Territories engaged in textile activities, the Ministry of Textiles has set an ambitious Vision 2030 target of $100 billion in exports. The strategy hinges on deeper trade partnerships, market diversification and a strong emphasis on innovation and sustainability, reinforcing India’s “Bharatiya Vastra Shakti” as a symbol of resilience and global competitiveness.
Tax reforms have also provided a significant boost. The GST rate on readymade garments and made-ups has been reduced to 5 per cent for items priced up to Rs 2,500 per piece, compared with the earlier Rs 1,000 threshold. GST on man-made fibres and yarns has been cut from 18 per cent to 5 per cent, while rates on carpets and floor coverings have been reduced from 12 per cent to 5 per cent. Additionally, GST has been lowered from 12 per cent to 5 per cent on 36 handicraft items, cotton handloom rugs and handwoven carpets, offering relief to artisans and supporting rural livelihoods.
On the innovation front, 168 R&D projects in speciality fibres and applications, including carbon fibre, aramid, composites and advanced machinery, have been approved with an outlay of Rs 520 crore.
Under the production-linked incentive (PLI) scheme for textiles, 74 applications have been selected with a proposed investment of Rs 28,711 crore. These projects are expected to generate turnover of Rs 2.17 lakh crore and create employment for over 2.59 lakh people.
India emerged as the world’s sixth-largest exporter of textiles and apparel in 2024, with the sector contributing 8.63 per cent of the country’s total exports and accounting for 4.1 per cent of global trade. The Textiles Trade Promotion (TTP) wing has played a key role in strengthening India’s global footprint by monitoring export performance through eleven Export Promotion Councils.
The cotton sector continues to remain a backbone of the industry, supporting nearly six 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 (100 lakh bales) under MSP operations, disbursing Rs 37,450 crore to farmers and covering 38 per cent of arrivals and 34 per cent of national production.
Handloom and handicraft segments have also benefited from focused support. Over 300 marketing events were organised, 12 Handloom Producer Companies were formed, and six Craft Handloom Villages were established, with two more under development. Under the Weavers’ MUDRA Scheme, 11,544 artisans accessed institutional credit, while welfare coverage expanded with 2.35 lakh enrollments under social security schemes.
Together, these measures underline a renewed momentum in India’s textile sector, positioning it as a key driver of employment, exports and sustainable industrial growth.
