Textile Business in India: Trends, Players, and Opportunities

When you think of the textile business in India, a massive, centuries-old industry that employs over 45 million people and contributes nearly 2% to the country’s GDP. Also known as Indian garment manufacturing, it’s not just about cotton shirts and sarees—it’s a complex ecosystem of spinning mills, dyeing units, export houses, and tech-driven factories. This isn’t a fading sector. It’s evolving fast, powered by global demand, smarter production, and government programs like the PLI scheme, a production-linked incentive program designed to boost domestic manufacturing of textiles and apparel.

The textile exports India, a $40+ billion annual market that sends fabrics and garments to over 150 countries are climbing every year. The U.S., U.K., Germany, and the UAE are top buyers, but new markets in Southeast Asia and Africa are opening up fast. Meanwhile, companies like Arvind Ltd, India’s largest textile manufacturer by revenue, capacity, and export volume are investing heavily in automation, sustainable dyes, and high-tech fabrics like moisture-wicking and UV-resistant materials. This isn’t just about making more clothes—it’s about making better, smarter, greener ones.

What’s driving this change? Three things: automation, government support, and global supply chain shifts. Factories that used to rely on handlooms are now using computer-controlled looms that cut waste and speed up production. The PLI scheme gives cash rewards to companies that increase output, which is why dozens of new plants opened in Gujarat, Tamil Nadu, and Uttar Pradesh in the last two years. And with China facing rising labor costs and trade tensions, brands from Nike to Zara are looking to India as their next big manufacturing hub.

It’s not all smooth sailing. Small mills still struggle with access to credit, outdated machinery, and slow adoption of digital tools. But the big players are setting the pace—and the rules. Sustainability is no longer optional. Buyers now demand proof that fabrics are made without toxic chemicals or excessive water use. That’s why polymer-based technical textiles—like those made by companies like Tirupati Polymers—are becoming essential. These aren’t your grandma’s cotton sheets. They’re high-performance fabrics used in medical gear, car seats, and even bulletproof vests.

If you’re thinking of entering the textile business in India, you’ve got options. You can start small with a local tailoring unit, scale up with a dyeing unit, or go big with export-focused garment production. The key is knowing where the demand is—and what the government is backing. The PLI scheme, export incentives, and state-level subsidies make it easier than ever to get started. But you’ll need to move fast. The window for early movers is closing as more players jump in.

Below, you’ll find real insights from businesses already winning in this space: who leads the market, where the biggest export opportunities lie, how automation is changing factory floors, and why the next big thing isn’t just cotton—it’s smart textiles made with advanced polymers.