India Textile Market Outlook to 2030

India Textile Market Overview

• The India Textile Market reached USD 240 billion in 2023, reflecting substantial growth driven by robust domestic demand and significant export activities. This growth is supported by advancements in textile manufacturing technologies and favorable government policies aimed at boosting production and enhancing competitiveness. Key drivers include the increasing demand for apparel and home textiles in both domestic and international markets, and the expansion of technical textiles into new sectors such as automotive and healthcare.

• Major players in the India Textile Market include Reliance Industries Ltd., Vardhman Textiles, Arvind Limited, Welspun India, and Raymond Group. These companies dominate the market with their extensive production capacities, strong distribution networks, and continuous innovation in product offerings. Their investment in sustainable practices and the development of eco-friendly textiles have enabled them to capture a significant share of the market and drive technological advancements.
• In 2024, Arvind Limited announced a significant expansion in its denim production capacity by 10 million meters annually, backed by an investment of USD 50 million. This expansion aims to cater to the rising demand for sustainable and eco-friendly denim globally. The investment aligns with the companys strategy to strengthen its position in the international market, particularly in the United States and Europe, which are the largest importers of Indian denim fabrics. The company also reported a 15% increase in revenue for Q1 2024 compared to the same period in 2023.
• Mumbai, Surat, Tirupur, and Bengaluru are the dominant cities in the India Textile Market due to their significant production capacities and investments in modern textile technologies. Mumbai, as the financial hub, leads in the textile and apparel manufacturing sector, while Surat is known for its synthetic textiles and diamond industry synergy. Tirupur is a key center for knitwear production, and Bengaluru is emerging as a major garment manufacturing hub due to its skilled labor force and strong logistics infrastructure.

India Textile Market Segmentation

The India Textile Market can be segmented by various factors such as type of Product, Material, and Region.

By Product Type: The market is segmented by product type into Apparel, Home Textiles, and Technical Textiles. In 2023, the Apparel segment held the largest market share due to its vast domestic market and export potential. The demand for apparel is driven by increasing fashion consciousness, a growing middle class, and the expansion of e-commerce platforms, which have made fashion more accessible across the country.

By Material Type: The market is segmented by material type into Cotton, Synthetic Fibers, and Others (including Silk and Wool). In 2023, Cotton dominated the market due to India's favorable climate for cotton cultivation and the government's support through subsidies for cotton farmers. The high demand for cotton in both domestic and international markets, particularly for organic cotton, further solidifies its leading position in the textile industry.

By Region: The market is segmented regionally into North, South, East, and West. In 2023, the South region led the market due to its extensive textile activities and early adoption of modern textile technologies. Tamil Nadu, Karnataka, and Andhra Pradesh are key drivers of market growth in this region, with significant investments in textile manufacturing and exports.

India Textile Market Competitive Landscape

• Reliance Industries Ltd.: In 2024, Reliance Industries announced the expansion of its polyester production capacity by an additional 500,000 metric tonnes per annum at its Jamnagar complex. The expansion, costing approximately USD 200 million, aims to cater to the rising demand for synthetic fibers in both domestic and international markets. Reliance also invested in sustainable practices, launching a new line of eco-friendly polyester made from recycled PET bottles, further enhancing its market presence in the textile sector.
• Vardhman Textiles: Vardhman Textiles, in early 2023, partnered with a leading Japanese company to enhance its capabilities in producing high-quality, eco-friendly yarns. The collaboration focuses on leveraging advanced technology to produce yarns with reduced environmental impact. This initiative is part of Vardhmans broader strategy to position itself as a leader in sustainable textiles, responding to increasing global demand for eco-friendly products, particularly from the European market.

India Textile Market Analysis

India Textile Market Growth Drivers

• Increasing Export Demand: The market is driven by a significant increase in export demand, particularly from markets in the United States and Europe. In 2024, Indias textile exports were valued at USD 45 billion, supported by Free Trade Agreements (FTAs) with key markets. These agreements reduce tariffs and enhance the competitiveness of Indian textiles globally, driving growth in the export segment.
• Rising Demand for Technical Textiles: The demand for technical textiles in India is growing rapidly due to their applications in various industries such as automotive, healthcare, and construction. In 2024, the technical textiles market was valued at USD 5 billion, with significant contributions from the automotive industry. Government initiatives under the National Technical Textiles Mission are promoting the development of high-value technical textiles, further boosting this segment.
• Expansion of E-commerce and Digital Platforms: The expansion of e-commerce and digital platforms has significantly boosted the India Textile Market. In 2024, online sales of textiles and apparel reached USD 10 billion, driven by the growing penetration of smartphones and internet services in Tier 2 and Tier 3 cities. E-commerce platforms like Amazon, Flipkart, and Myntra have expanded their textile offerings, providing greater market access to manufacturers and consumers alike.

India Textile Market Challenges

• High Raw Material Costs: The India Textile Market faces challenges due to high raw material costs, particularly for cotton. In 2024, the average price of cotton rose to INR 68,000 per candy (356 kg), impacting the profitability of textile manufacturers. Fluctuations in raw material prices affect the entire textile value chain, posing a significant challenge to market stability.
• Infrastructural Bottlenecks: Infrastructural bottlenecks and high logistics costs are major challenges for the India Textile Market. In 2024, logistics costs in India accounted for approximately 14% of GDP, which is higher compared to other major textile-producing countries. Poor road and port infrastructure and inadequate warehousing facilities increase costs and delays in shipment, hindering market growth.

India Textile Market Government Initiatives

• PM-MITRA Scheme: The PM-MITRA (Pradhan Mantri Mega Integrated Textile Region and Apparel) scheme, launched in 2023, aims to establish seven world-class textile parks across India. With an investment of USD 1.5 billion, these parks will enhance the textile value chain and attract significant investments, creating over 1 million jobs by 2026. The scheme supports the growth of the textile industry by providing integrated facilities and infrastructure.
• National Technical Textiles Mission: The National Technical Textiles Mission, initiated in 2020, focuses on promoting the development and use of technical textiles in India. With a budget of USD 200 million, the mission aims to reduce import dependency and boost domestic manufacturing. In 2024, the mission supported the establishment of four new research centers and provided subsidies to encourage the adoption of technical textiles, contributing to market growth.

India Textile Market Future Outlook

The India Textile Market is poised for remarkable growth, driven by sustainability, digitalization, and export growth.

Future Market Trends

• Growth of Sustainable Textiles: By 2028, the India Textile Market will see a significant shift towards sustainable textiles and circular economy practices. The market for eco-friendly textiles is projected to reach INR 15,000 crore (USD 1.9 billion), driven by increasing consumer demand for organic and recycled fabrics. Companies will invest in developing sustainable materials and production processes, aligning with global trends toward environmental responsibility and meeting the sustainability criteria of international buyers.
• Expansion of Digital and Smart Textiles: The Indian textile market is expected to witness significant growth in digital and smart textiles by 2028, driven by advancements in technology and increased investment in research and development. Smart textiles, which incorporate electronic components and sensors, will become a major segment, especially in sportswear, healthcare, and defense. The integration of artificial intelligence (AI) and the Internet of Things (IoT) in textile manufacturing will enable real-time monitoring and management of production processes, leading to enhanced efficiency and reduced operational costs.