India’s textile sector continues to draw sustained global investor and buyer attention, supported by steady export growth, an expanding network of trade agreements, and industrial infrastructure being delivered on schedule. As one of the oldest components of the country’s industrial base, the textile market spans raw material cultivation, yarn and fabric production, garmenting, and technical textiles, positioning the country firmly within global textile supply chains.  

Recent developments are strengthening that proposition. Textile and apparel exports continued to grow in FY 2025-26 despite uncertainty in global trade; new trade agreements are opening preferential access to major markets, and investments under PM MITRA are creating integrated manufacturing ecosystems. These developments are expanding the country’s opportunity not only as a sourcing destination, but as a long-term manufacturing and investment base for global textile businesses. 

Export Growth Amid Global Trade Uncertainty 

India's textile and apparel exports, including handicrafts, grew 2.1% in FY 2025-26 to ₹3,16,334.9 crore, up from ₹3,09,859.3 crore the previous year.[1] Growth by category included: 

• Ready-made garments (largest export category): up 2.9%, to ₹1,39,349.6 crore 

• Man-made yarn, fabrics, and made-ups: up 3.6%, to ₹42,687.8 crore 

• Cotton yarn, fabrics, made-ups, and handloom products: up 0.4%, to ₹1,02,399.7 crore 

• Handicrafts (excluding handmade carpets): up 6.1%, to ₹15,855.1 crore [1] 

Export growth was recorded across more than 120 destinations between April 2025 and February 2026, with notable increases in the UAE (22.3%), UK (7.8%), Germany (9.9%), Japan (20.6%), and Egypt (38.3%).[1] India was the world's sixth-largest exporter of textiles and apparel in 2024, accounting for 4.1% of global trade, with the United States and the European Union together accounting for 49.2% of India's textile and apparel exports.[2] 

An Expanding Network of Trade Agreements 

For export-oriented textile manufacturers, India’s expanding trade agreement network has the potential to change the economics of manufacturing in India. Preferential access to major consumer markets can reduce tariff disadvantages while strengthening the country’s integration into global supply chains. 

India concluded or brought into force five trade agreements affecting the textile sector within eighteen months: 

• India-UK Comprehensive Economic and Trade Agreement: Signed on July 24, 2025, and officially came into effect on July 15, 2026, granting zero-duty access for roughly 99% of Indian exports to the UK. 

• India-EFTA Trade and Economic Partnership Agreement: Signed in March 2024 and officially entered into force on October 1, 2025, securing tariff concessions with Switzerland, Norway, Iceland, and Liechtenstein. 

• India-Oman Comprehensive Economic Partnership Agreement: Concluded and signed in December 2025, providing Indian products like textiles and footwear duty-free access to the Omani market. 

• India-New Zealand FTA: Concluded and announced on December 22, 2025, granting 100% duty-free access for Indian marine, dairy, and agri-processed products. 

• India-EU FTA: Concluded on January 27, 2026, creating a comprehensive free trade framework designed to double bilateral trade flows between India and the European Union. [1] 

The Ministry of Textiles has stated that these agreements are expected to improve preferential market access, reduce tariff disadvantages, and support supply-chain integration specifically for textiles, apparel, handicrafts, and technical textiles.[1] At Bharat Tex 2026, a dedicated ministerial discussion, "India–UK CETA in Action," examined the early effects of the UK agreement on bilateral textile trade and investment.[3] 

Bharat Tex 2026: Scale and Global Participation 

The scale of commercial engagement at Bharat Tex 2026 provides another indicator of international interest in India’s textile ecosystem. Held in New Delhi from July 14–17, the event attracted nearly 95,000 business visitors and participants from 138 countries.[4] More than 30 state governments signed MoUs during the event, including Andhra Pradesh (₹4,100 crore), Karnataka (₹2,821 crore, projected to create over 11,020 jobs), Bihar (₹1,476 crore, projected to create over 40,500 jobs), and Maharashtra (₹1,095 crore).[4] 

PM MITRA: Infrastructure for Integrated Manufacturing 

For textile investors, scale alone is not enough; competitiveness also depends on how efficiently spinning, weaving, processing, garmenting, logistics and supporting services can operate together. The seven PM Mega Integrated Textile Region and Apparel (PM MITRA) parks are designed around this challenge, creating integrated textile ecosystems with shared infrastructure and connectivity. 

The scheme, with an outlay of ₹4,445 crore for 2021–22 to 2027–28, is being developed at Virudhunagar in Tamil Nadu, Warangal in Telangana, Navsari in Gujarat, Kalaburagi in Karnataka, Dhar in Madhya Pradesh, Lucknow in Uttar Pradesh and Amravati in Maharashtra. [5] Investment MoUs across the seven parks had a combined potential exceeding ₹27,434 crore according to the Ministry’s 2025 year-end review.[6] 

The operationalisation of Kakatiya Mega Textile Park at Warangal in May 2026 marked an important transition from policy design to on-ground infrastructure. As the parks mature, their investment proposition will rest on integrated infrastructure, connectivity, supplier ecosystems and lower operating complexity for manufacturers. [7] 

Government Schemes Supporting the Sector 

Beyond PM MITRA, other central schemes support specific segments of India's textile production base: 

• National Technical Textiles Mission (NTTM): outlay of ₹1,480 crore, extended to March 2026; 168 research projects approved, including 3 indigenous machinery development projects, 24 start-ups, and 45 educational institutions offering technical textiles courses.[8] 

• SAMARTH (Scheme for Capacity Building in Textile Sector): 5.26 lakh beneficiaries trained since FY 2021-22 through December 11, 2025, of whom 4,67,596 (about 89%) were women.[9] 

• Production-Linked Incentive (PLI) Scheme for Textiles: aimed at creating 60-70 global-scale manufacturers, attracting approximately ₹19,000 crore in fresh investment, and generating close to 7.5 lakh new jobs.[10] 

• Amended Technology Upgradation Fund Scheme (ATUFS) and Silk Samagra-2: support technology modernization and sericulture value chain development.[11] 

Consistent Policy Support 

India permits 100% foreign direct investment in textiles and apparel through the automatic route. [2]. Alongside PM MITRA, policy interventions address different constraints across the value chain—from scale and technology to skills and advanced materials. 

SAMARTH has supported workforce development, with 5.26 lakh beneficiaries trained since FY 2021–22 through December 11, 2025, around 89% of them women.[9] The Production-Linked Incentive Scheme for Textiles was designed with the objective of encouraging globally competitive manufacturing scale, attracting approximately ₹19,000 crore in fresh investment and generating close to 7.5 lakh jobs.[10] ATUFS and Silk Samagra-2 provide additional support for technology modernisation and sericulture value-chain development.[11] 

Together, these interventions reflect an ecosystem approach: building infrastructure, skills, technology and scale rather than relying on a single policy instrument. 

Strengthening the Raw Material Base 

The Cotton Corporation of India, the central nodal agency for cotton procurement under the Ministry of Textiles, procured 105.09 lakh bales of cotton, valued at ₹41,530 crore, under Minimum Support Price operations during the 2025-26 season, through more than 24 lakh individual procurement transactions with farmers.[13] To widen its reach, the Corporation expanded its procurement network from 508 centres in 2024-25 to 571 centres across 150 districts in 11 cotton-growing states.[14] The government's Mission for Cotton Productivity aims to raise national output to 498 lakh bales by 2031, and the cotton sector currently accounts for close to 19% of global fibre production originating in India.[13] 

Sector Outlook 

The Ministry of Textiles has set a target of growing the sector to USD 350 billion by 2030.[15] The sector remains a major source of employment: as of the Ministry's most recent published figures, it provides direct employment to over 45 million people and supports the livelihoods of over 100 million more, including a significant proportion of women and rural workers.[16]  

Achieving the 2030 ambition will depend on India’s ability to translate its traditional strengths into globally competitive manufacturing ecosystems. The foundations are increasingly visible: an end-to-end value chain, a large workforce, expanding preferential market access, integrated textile parks, capabilities in technical textiles and an investment framework that permits 100% FDI under the automatic route.