The Government of Odisha has announced a comprehensive plan to establish textile mills and value-added textile industries in its cotton-producing regions, particularly in the western districts such as Bolangir, Sonepur and Kalahandi.
This announcement was made by Chief Minister Mohan Charan Majhi at a press meet in Sonepur, where he outlined the state’s strategy to strengthen local processing, industrial development and rural livelihoods.
The initiative is part of a broader state vision to promote “Field to Fashion” integration linking cotton cultivation directly to textile processing, garment manufacturing and exports thereby anchoring Odisha’s rising position in India’s textile sector.
At present, raw cotton grown in Odisha’s western districts is largely transported to other states for ginning and further processing. New textile mills will enable on-site processing, reduce logistics costs, and keep more economic value in the state.
Government officials say the move will generate significant local employment, particularly in rural areas, helping curb out-migration of skilled and semi-skilled labour.
By establishing processing units close to cotton belts, farmers can receive better prices for their produce and improved market access.
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The textile mills announcement fits within Odisha’s industrial expansion framework, which has seen approvals worth thousands of crores across sectors like textiles, food processing, manufacturing, steel and more.
In 2025 alone, the state approved investment proposals worth ₹3,878 crore and ₹4,982 crore spanning multiple industries, including sizeable textile and apparel projects expected to generate tens of thousands of jobs.
Additionally, the state has been actively converting investment commitments into tangible infrastructure. For example, Chief Minister Majhi inaugurated projects worth over ₹5,770 crore across key industrial estates including textile parks and worker hostels that will support apparel and textile units.
Odisha is positioning itself as a major textile hub in eastern India by 2030, aiming to attract large-scale investments, generate over 1 lakh jobs, and develop state-of-the-art infrastructure that connects farmers to global markets. This includes development of dedicated textile and apparel parks in districts like Keonjhar, Balangir, Sambalpur and Cuttack.
Technical Textile and Yarn Park projects and Footwear Park development for diversified manufacturing. Industry partnerships with major players such as MAS Holdings, Shahi Exports and Aditya Birla to bring capital, technology and market access.
Focus on sustainability, circular fashion and green manufacturing practices within textile clusters.
These efforts are designed to create an end-to-end value chain from farm-grown cotton to finished textile products which would increase competitiveness and export potential.
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To promote textile investments and showcase Odisha’s potential, the state government is hosting events like Odisha TEX 2025 , the first major textile investment summit which aims to attract top domestic and international firms and build collaborations across apparel, technical textiles, accessories and related segments.
Furthermore, existing state policies including industrial incentives and logistics support help in improving the ease of doing business and facilitating investment into textile and allied sectors.
Odisha’s textile vision also complements initiatives in handloom, handicrafts and sericulture, ensuring traditional livelihoods align with modern industrial growth.
The state’s unique handwoven textiles such as Sambalpuri and Tassar silk continue to receive government support alongside emerging industrial clusters, helping preserve cultural heritage while creating economic opportunities.
In summary, Odisha’s plan to set up textile mills in its cotton belt marks a strategic effort to build a robust, inclusive and market-linked textile ecosystem one that is expected to generate employment, uplift farmers, attract investors and position the state as a textile powerhouse in eastern India by the end of the decade.
