Textile industry targets $350 billion by 2030

India’s textile industry expanded to nearly $190 billion in FY26 and now targets $350 billion by 2030, driven by domestic demand, manufacturing investments, and export opportunities, according to the latest report by Rubix Data Sciences.

The report noted that the sector remains a primary employment generator while the central government considers a Rs 400 billion, five-year Textile Expansion and Employment (TEEM) Scheme to upgrade machinery, deploy advanced technology, and modernise traditional clusters.
The expansion comes as outbound shipments rebound. Textile exports, including handicrafts, grew by 10.3% year-on-year in the April-August 2026 period. The recovery follows a 2.7% decline to $35.8 billion in FY2026, even as imports climbed 17.1% to $9.6 billion.

Despite the divergence, India maintained a net exporter position, with total outbound shipments standing at nearly 3.7 times the value of inbound shipments. Readymade garments retained a 44% share of exports, while man-made fibre textiles accounted for 15%.
Tushar Bhaskar, President of Rubix Data Sciences, noted that the sector continues to navigate external headwinds alongside domestic growth.

“India’s textile industry has shown resilience, with exports growing 10.3% in April–August 2026 after a 2.7% decline in Dollar terms in FY2026,” Bhaskar said.
According to the report, the United States remained India’s largest destination, taking 31 per cent of shipments in FY2026, followed by the European Union at nearly 16%. However, trade dynamics shifted after the US introduced an additional 10% duty under Section 301 measures in July 2026 concerning forced-labour enforcement, while broader negotiations stalled.

Input cost inflation also affected the domestic value chain. Cotton yarn prices climbed roughly 60 per cent to ₹400 per kilogram in September 2026 from ₹250 per kilogram in early 2026. The increase coincided with local cotton production dropping to 290.91 lakh bales in the 2025–26 season, down from 352.48 lakh bales in 2020-21. To assist mills, authorities granted an exemption on the 11% cotton import duty through October 31, 2026.

Industrial infrastructure activity provided capital momentum. Investment proposals under the seven approved PM Mega Integrated Textile Region and Apparel Parks reached ₹685.9 billion by August 2026, led by major expansion outlays from corporate producers including Grasim Industries and Vardhman Textiles. - ANI