India’s textiles sector records surge in investment, rise in exports in 2025

The government approved setting up of seven PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks with world-class infrastructure, including plug and play facility with an outlay of Rs 4,445 crore for a period of seven years up to 2027-28. These parks are coming up in Tamil Nadu (Virudhnagar), Telangana (Warangal), Gujarat (Navsari), Karnataka (Kalaburagi), Madhya Pradesh (Dhar), Uttar Pradesh (Lucknow) and Maharashtra (Amravati), according to a statement issued by the Ministry of Textiles.

So far, investment MoUs with expected investment potential of over Rs 27,434 crore have been signed and 100 per cent land acquired and handed over to the special purpose vehicle. After the approval of sites by the Centre, infrastructure works worth Rs 2,590.99 crore for providing infrastructure till the park gates have been started by all seven state governments.

The government has also launched the National Technical Textiles Mission (NTTM) with an outlay of Rs 1,480 crore, focusing on research, market development, education, and export promotion. The mission aims to enhance the usage of technical textiles in various national programmes and strategic sectors and has been extended until March 31, 2026.

Exports of textiles and apparel, including handicrafts, reached .8 billion in 2024-25, registering 5 per cent growth over the previous year and achieving a robust trade surplus of .2 billion.

Traditional markets such as the US, the EU, and the UK together accounted for 55 per cent of exports, while emerging destinations like Bangladesh, the UAE, Sri Lanka, Australia, and Canada contributed 20 per cent.

With over 500 districts across 33 States/UTs actively engaged, the Ministry has set a bold Vision 2030 target of $100 billion exports, to be driven by enhanced trade partnerships, market diversification, and a strong focus on innovation and sustainability -- underscoring India’s Bharatiya Vastra Shakti as a symbol of resilience, craftsmanship, and global competitiveness.

The GST rate cut in textiles has also come as a big boon for the sector and will boost exports further. The GST rate on readymade garments and made ups has been reduced to 5 per cent up to Rs 2,500/piece from the earlier applicable limit of Rs 1,000.

Similarly on man-made fibres and yarns, the GST has been reduced from 18 per cent to 5 per cent and that on carpets and floor coverings reduced from 12 per cent to 5 per cent.

GST has also been reduced from 12 per cent to 5 per cent on 36 handicraft items, cotton rugs of handloom, and handwoven carpets under HS 5705. This measure will provide relief to artisans, enhance rural livelihoods, and support India’s rich craft traditions.

As many as 168 R&D projects in speciality fibre and applications (including carbon fibre and aramid, alternate materials, composites, machinery) have been approved with an outlay of Rs. 520 crore.

As many as 74 applications were selected under the production-linked investment (PLI) scheme for textiles. The total proposed investment would be Rs 28,711 crore which is expected to generate a turnover of Rs 2,16,760 crore and create employment for 2,59,164 people. Out of these applications, participant companies have already undertaken investment in their projects.

The Textiles Trade Promotion (TTP) section has played a pivotal role in strengthening India’s global textile footprint, monitoring export performance through eleven Export Promotion Councils. In 2024, India emerged as the 6th largest exporter of textiles and apparel, with the sector contributing a significant 8.63 per cent share to India’s total exports and accounting for 4.1 per cent of global trade.

The cotton sector, a cornerstone of India’s agricultural economy supporting nearly 6 million farmers and 40–50 million people across the value chain, continues to play a pivotal role in textile production and foreign exchange earnings. In the cotton season 2024–25, the government through its nodal agency, the Cotton Corporation of India Ltd. (CCI) under Ministry of Textiles has successfully procured 525 lakh quintals of seed cotton (100 lakh bales) under MSP operations, disbursing Rs 37,450 crore to farmers — covering 38 per cent of arrivals and 34 per cent of national production.

The Handloom Marketing Assistance and allied schemes have significantly strengthened India’s handloom ecosystem by combining market promotion, welfare, and raw material support. Over 300 marketing events were organized to boost sales, alongside the formation of 12 Handloom Producer Companies and the establishment of six Craft Handloom Villages with two more underway, integrating craft promotion with tourism.

Besides, under the Weavers’ MUDRA Scheme, 11,544 artisans accessed credit, and welfare coverage expanded with 2.35 lakh enrollments under social security schemes.