India Textile Manufacturing Market Outlook to 2035

The report titled “India Textile Manufacturing Market Outlook to 2035 – By Fiber Type, By Process Stage, By End-Use Segment, By Production & Sourcing Model, and By Region” provides a comprehensive analysis of the textile manufacturing industry in India. The report covers an overview and genesis of the market, overall market size in terms of value, detailed market segmentation; trends and developments, regulatory and policy landscape, buyer-level demand profiling, key issues and challenges, and competitive landscape including competition scenario, cross-comparison, opportunities and bottlenecks, and company profiling of major players operating in the Indian textile manufacturing ecosystem. The report concludes with future market projections based on domestic consumption growth, export demand cycles, man-made fiber penetration, sustainability and compliance requirements, regional manufacturing clusters, cause-and-effect relationships, and case-based illustrations highlighting the major opportunities and cautions shaping the market through 2035.

India Textile Manufacturing Market Overview and Size

The India textile manufacturing market is valued at approximately ~USD ~ billion, representing the integrated production of fibers, yarns, fabrics, and finished textile products across natural, man-made, and blended materials. The market spans the full value chain—from cotton ginning and spinning to weaving, knitting, processing, garmenting, and technical textiles—supported by a large base of small, medium, and large-scale manufacturing units across the country.

India is one of the world’s largest producers of cotton and a major global hub for spinning, fabric manufacturing, and apparel exports. The industry benefits from abundant raw material availability, a deep labor pool, long-established manufacturing clusters, and a diversified end-use base covering apparel, home textiles, industrial textiles, and technical applications. Textile manufacturing also plays a strategic role in India’s industrial economy due to its high employment intensity, strong linkage with agriculture, and export-oriented structure.

Regional textile activity is concentrated across well-defined clusters. Western India, led by Gujarat and Maharashtra, serves as a hub for cotton spinning, weaving, processing, and man-made fiber-based textiles, supported by strong infrastructure and port connectivity. Southern India, particularly Tamil Nadu, dominates spinning and knitwear production, with integrated capabilities extending into garments. Northern India, including Punjab, Haryana, and Uttar Pradesh, remains important for yarn spinning, terry towels, home textiles, and apparel manufacturing. Eastern regions are gradually emerging through policy-driven investments, but capacity utilization and ecosystem maturity remain uneven compared to established clusters.

What Factors are Leading to the Growth of the India Textile Manufacturing Market:

Rising domestic consumption and export demand underpin capacity expansion: India’s growing middle-income population, urbanization, and increasing discretionary spending are driving steady growth in domestic apparel and home textile consumption. Simultaneously, India continues to strengthen its position as a global textile and apparel sourcing destination due to supply chain diversification away from single-country dependence. Export demand from the US, Europe, and emerging markets supports capacity additions across spinning, fabric manufacturing, and garmenting. This dual demand structure—domestic plus exports—provides stability and scale to textile manufacturing investments.

Shift toward man-made fibers and technical textiles broadens the manufacturing base: While cotton remains central to India’s textile ecosystem, demand is steadily shifting toward man-made fibers (MMF) and blended fabrics driven by fashion trends, performance requirements, and cost considerations. Growth in technical textiles for automotive, healthcare, infrastructure, and industrial applications is further expanding the market beyond traditional apparel uses. Manufacturers are investing in new machinery, processing capabilities, and product development to address these higher-value segments, increasing overall industry sophistication and margins.

Government policy support and infrastructure-linked incentives improve competitiveness: Policy initiatives such as production-linked incentives (PLI), integrated textile parks, export facilitation measures, and labor and logistics reforms are strengthening India’s manufacturing competitiveness. Investments in common infrastructure, plug-and-play industrial parks, and improved port and freight connectivity reduce operating costs and improve lead times. Compliance alignment with global sustainability, traceability, and quality standards also enhances India’s attractiveness as a long-term sourcing base for global brands and retailers.

Which Industry Challenges Have Impacted the Growth of the India Textile Manufacturing Market:

Volatility in raw material prices and fiber availability affects margin stability and planning: The Indian textile manufacturing sector remains highly sensitive to fluctuations in raw material prices, particularly cotton, man-made fibers, and petrochemical derivatives. Variability in cotton output due to monsoon dependence, pest attacks, and acreage shifts leads to periodic price spikes, directly impacting spinning and downstream margins. Similarly, volatility in crude-linked inputs affects polyester and blended yarn economics. These fluctuations make long-term pricing commitments difficult, increase working capital pressure, and limit the ability of manufacturers—especially small and mid-sized players—to plan capacity utilization and export contracts with certainty.

Fragmented industry structure and uneven technology adoption constrain productivity gains: Despite the presence of large, integrated textile groups, a significant portion of India’s textile manufacturing base remains fragmented and dominated by small and medium enterprises with limited access to capital. Many units continue to operate with older machinery, lower automation levels, and sub-scale operations, resulting in lower productivity, inconsistent quality, and higher conversion costs. This fragmentation creates challenges in meeting large-volume orders, ensuring uniform compliance, and achieving the speed and reliability increasingly demanded by global buyers.

Rising compliance, sustainability, and traceability requirements increase cost and complexity: Global brands and retailers are imposing stricter requirements related to environmental performance, chemical usage, wastewater treatment, labor standards, and supply chain traceability. While these requirements enhance long-term sustainability and market access, they also increase upfront capital expenditure and ongoing operating costs for textile manufacturers. Compliance gaps particularly in processing and dyeing can limit export eligibility for smaller players and slow down onboarding with international customers, impacting growth momentum across certain segments of the industry.

What are the Regulations and Initiatives which have Governed the Market:

Textile-specific policy frameworks supporting scale, modernization, and exports: The Indian textile manufacturing market operates under a range of central and state-level policy initiatives aimed at enhancing competitiveness and scale. Schemes promoting production-linked incentives, integrated textile parks, and technology upgradation encourage investment in modern machinery, larger facilities, and vertically integrated operations. Export-oriented policies, including duty remission mechanisms and trade facilitation measures, are designed to improve cost competitiveness in global markets and support sustained export growth.

Environmental regulations governing processing, water usage, and effluent treatment: Textile processing units are subject to increasingly stringent environmental regulations related to water consumption, effluent discharge, chemical management, and energy efficiency. State pollution control boards mandate zero liquid discharge or advanced effluent treatment in several regions, particularly for dyeing and finishing clusters. Compliance with these norms influences plant location decisions, operating costs, and the pace of capacity expansion, while also accelerating investment in sustainable technologies and shared infrastructure within textile parks.

Labor laws, safety standards, and formalization initiatives shaping operating models: Labor-intensive textile manufacturing is governed by evolving labor regulations covering wages, working conditions, safety, and social security. Recent labor code reforms aim to simplify compliance and encourage formalization, but implementation varies by state. In parallel, buyer-driven audits related to worker welfare, health, and safety increasingly influence supplier eligibility. These regulatory and quasi-regulatory requirements shape staffing models, cost structures, and investment decisions, particularly for garmenting and labor-heavy segments of the textile value chain.

India Textile Manufacturing Market Segmentation

By Fiber Type: Cotton-based textiles continue to hold a dominant position in India’s textile manufacturing market due to the country’s strong cotton production base, well-established spinning and weaving infrastructure, and long-standing expertise in cotton yarns, fabrics, and garments. However, man-made fibers (MMF) and blended textiles are gaining share as fashion cycles shorten, performance requirements increase, and export buyers shift toward polyester, viscose, and blended products. The gradual diversification of the fiber mix is reshaping investment priorities across spinning, processing, and fabric manufacturing.

Cotton Textiles  ~45 %
Man-Made Fiber (Polyester, Viscose, Nylon, Acrylic)  ~35 %
Blended Textiles  ~15 %
Others (Wool, Silk, Specialty Fibers)  ~5 %

By Process Stage: Spinning remains the backbone of India’s textile manufacturing ecosystem, supported by one of the largest spindle capacities globally. Fabric manufacturing—both weaving and knitting—accounts for a significant share, driven by domestic apparel demand and exports. Processing and finishing, while critical for value addition, remain more capacity-constrained due to regulatory intensity and higher capital requirements. Garmenting and made-ups continue to grow steadily as buyers increasingly prefer sourcing finished products rather than intermediate materials.

Spinning (Yarn Manufacturing)  ~30 %
Weaving & Knitting (Fabric Manufacturing)  ~30 %
Processing & Finishing (Dyeing, Printing, Finishing)  ~20 %
Garmenting & Made ups  ~20 %

Competitive Landscape in India Textile Manufacturing Market

The India textile manufacturing market is highly fragmented, characterized by a large base of small and mid-sized enterprises alongside a limited number of large, vertically integrated groups. Competitive intensity varies significantly by segment: spinning and basic fabric manufacturing are more commoditized and price-driven, while value-added fabrics, technical textiles, and integrated garmenting exhibit higher entry barriers and stronger differentiation. Key competitive factors include access to raw materials, scale of operations, technology adoption, compliance capabilities, buyer relationships, and export market penetration.

Large integrated players benefit from end-to-end control over the value chain, better working capital management, and stronger compliance credentials, enabling them to service global brands and large retail programs. Smaller players remain competitive in regional markets and niche segments but face pressure from rising compliance costs, buyer consolidation, and increasing preference for integrated suppliers.

Some of the Recent Competitor Trends and Key Information About Competitors Include:

Arvind Limited: Arvind continues to strengthen its position as a diversified textile and apparel player with focus on denim, woven fabrics, and branded apparel. The company’s integrated manufacturing model, sustainability investments, and strong relationships with global fashion brands support its competitiveness in export-oriented and value-added segments.

Vardhman Textiles: Vardhman remains one of India’s largest yarn manufacturers, with a strong presence across cotton, blended, and synthetic yarns. Its scale, raw material sourcing capabilities, and conservative balance sheet allow it to withstand commodity cycles and maintain leadership in spinning-led segments.

Welspun India: Welspun is a global leader in home textiles, particularly bed linen and towels, with a strong export footprint. The company differentiates through design capabilities, traceability solutions, and sustainability-led manufacturing, catering to large international retailers and institutional buyers.

Trident Group: Trident has built scale in home textiles and paper products, with competitiveness driven by integrated operations, large capacities, and cost efficiencies. Its focus on terry towels and bed linen positions it well in export markets, though margins remain sensitive to cotton price movements.

KPR Mill: KPR Mill represents the newer generation of integrated textile manufacturers, combining spinning, fabric, garmenting, and captive power. Its strength lies in knitwear exports, operational efficiency, and increasing focus on higher-value apparel programs for international buyers.

What Lies Ahead for India Textile Manufacturing Market?

The India textile manufacturing market is expected to expand steadily by 2035, supported by rising domestic consumption, increasing export relevance amid global sourcing diversification, and continued investments in capacity modernization across spinning, fabric manufacturing, processing, and garmenting. Growth momentum is further strengthened by the gradual shift toward man-made fibers and blended textiles, expanding technical textile applications, and policy-led development of integrated manufacturing ecosystems. As buyers increasingly prioritize reliable supply, compliance readiness, shorter lead times, and scalable production, India is positioned to remain a long-term global textile manufacturing hub through 2035.

Transition Toward Man-Made Fibers, Blends, and Higher-Value Product Mix: The future of India’s textile market will see a sustained move beyond cotton-heavy production toward man-made fibers and blended textiles that align with global apparel trends and performance needs. Polyester and viscose-based value chains are expected to expand in both yarn and fabric manufacturing, supported by improved processing capabilities and brand demand for wrinkle resistance, durability, and functional performance. At the same time, higher-value categories—such as performance wear, specialty fabrics, and design-led collections—will gain traction, enabling better margin outcomes for manufacturers that upgrade product development and quality systems.

Growing Emphasis on Integrated Manufacturing, Speed, and Buyer-Ready Compliance Models: Global and domestic buyers are increasingly consolidating supplier bases and preferring manufacturers with integrated capabilities spanning spinning-to-garmenting and strong compliance systems. Through 2035, this will accelerate investments in vertical integration, larger capacities, and standardized operating processes that improve consistency and turnaround time. Suppliers that can offer end-to-end solutions—supported by audited sustainability practices, traceability, and reliable delivery performance—will capture a greater share of export programs and large domestic brand sourcing.

Acceleration of Sustainability-Led Investments in Processing, Water Management, and Traceability: Processing and dyeing will become a key transformation area as environmental regulation and buyer expectations tighten. Water efficiency, effluent treatment, chemical compliance, and energy transition initiatives will increasingly influence supplier selection and long-term competitiveness. Manufacturers are expected to expand investments in wastewater recycling, low-impact dyeing, renewable energy sourcing, and digital traceability tools that can support buyer reporting requirements. Sustainability will shift from being a compliance necessity to an active differentiator, especially in export-linked value chains.

Technology Adoption, Automation, and Digital Production Planning to Improve Productivity: Competitive intensity and margin pressure will push the industry toward higher productivity and reduced defects through automation and digitalization. Adoption of modern looms, knitting systems, automated cutting, sewing support technologies, and digital quality controls will grow—particularly among mid-to-large enterprises. Digital production planning and inventory optimization will also become more important as fashion cycles shorten and buyers demand smaller, more frequent order cycles. Manufacturers with faster sampling, tighter quality control, and better production visibility will improve win rates with premium customers.

India Textile Manufacturing Market Segmentation

By Fiber Type
• Cotton Textiles
• Man-Made Fiber (Polyester, Viscose, Nylon, Acrylic)
• Blended Textiles
• Others (Wool, Silk, Specialty Fibers)

By Process Stage
• Spinning (Yarn Manufacturing)
• Weaving & Knitting (Fabric Manufacturing)
• Processing & Finishing (Dyeing, Printing, Finishing)
• Garmenting & Made-ups

By Production & Sourcing Model
• Integrated Manufacturing (Spinning-to-Garmenting)
• Semi-Integrated (Spinning + Fabric / Fabric + Processing / Fabric + Garments)
• Job-Work / Cluster-Based Manufacturing
• Export-Oriented Manufacturing vs Domestic-Driven Manufacturing

By End-Use Segment
• Apparel & Clothing
• Home Textiles
• Industrial & Technical Textiles
• Others (Accessories, Carpets, Niche Applications)

By Region
• West India (Gujarat, Maharashtra, Rajasthan)
• South India (Tamil Nadu, Karnataka, Telangana, Andhra Pradesh)
• North India (Punjab, Haryana, Uttar Pradesh, Delhi NCR)
• East & Central India (West Bengal, Odisha, Madhya Pradesh, Chhattisgarh)

Players Mentioned in the Report:

• Arvind Limited
• Vardhman Textiles
• Raymond Limited
• Welspun India
• Trident Group
• KPR Mill
• Nahar Group
• Siyaram Textiles
• Rupa & Company
• Large integrated exporters, processing houses, regional spinning clusters, and garmenting MSMEs

Key Target Audience

• Textile manufacturers across spinning, weaving/knitting, processing, and garmenting
• Exporters and sourcing houses
• Domestic apparel brands and retailers
• Global brands and buying offices sourcing from India
• Technical textile manufacturers and industrial buyers
• Textile machinery and chemical suppliers
• Industrial park developers and state textile development bodies
• Private equity, strategic investors, and lenders evaluating manufacturing scale-up

Time Period:

Historical Period: 2019–2024
Base Year: 2025
Forecast Period: 2025–2035