India’s textile industry is targeting a market size of $350 billion by 2030, betting on domestic demand, manufacturing investment and recovering exports, even as rising raw-material prices and trade uncertainty weigh on producers.
The industry was valued at nearly $190 billion in the 2025–26 financial year, according to a report by Rubix Data Sciences. Textile exports, including handicrafts, rose 10.3% year-on-year in April-August 2026, following a 2.7% decline to $35.8 billion in the previous fiscal year.
Imports increased 17.1% to $9.6 billion in 2025–26, but India remained a net exporter, with outbound shipments worth nearly 3.7 times inbound shipments.
Ready-made garments accounted for 44% of textile exports in the last fiscal year, while man-made fibre textiles represented 15%, highlighting the importance of apparel and synthetic materials to the country’s export performance.
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However, manufacturers face mounting cost pressures. Cotton yarn prices rose approximately 60% to 400 rupees per kilogram in September from 250 rupees in early 2026, reflecting tighter domestic cotton supplies. Freight disruptions and uncertainty in the United States, India’s largest textile export market, have added to the challenges.
The United States accounted for 31% of India’s textile shipments in 2025–26, while the European Union represented nearly 16%. Exporters are increasingly exploring alternative markets to reduce their exposure to shifting trade policies and tariffs.
The Indian government is also considering a five-year, 400-billion-rupee Textile Expansion and Employment scheme to modernise machinery, encourage advanced technology and upgrade traditional textile clusters.
Investment proposals under seven approved PM Mega Integrated Textile Region and Apparel parks reached 685.9 billion rupees by August, the report said.
Achieving the 2030 target will depend on whether India can sustain export growth, contain production costs and improve competitiveness while expanding its manufacturing capacity.