By FMTeam India’s textile and apparel sector holds critical positioning in the domestic economy: contributing approximately 2.3% to GDP, 13% to industrial production, and 12% to exports, while directly employing 45 million individuals and indirectly supporting over 100 million jobs. In FY 2023–24, textile exports reached roughly US $44 billion, accounting for ~4% of global trade share—a significant base that’s poised for growth . Government initiatives like the PLI Scheme, PM MITRA Parks, and National Technical Textiles Mission aim to boost exports to US $65 billion by FY26 and scale the broader textiles & apparel market to US $350 billion by 2030. However, global competition, raw‑material volatility, fragmented supply chains, and sustainability concerns present structural challenges. Below is an updated SWOT analysis contextualizing India’s textile sector in 2025.
Strengths
1. Massive scale & employment engine: India remains the second-largest textile exporter globally, and the sector generates employment for tens of millions, including a vast base of rural women and unskilled laborers across MSME clusters.
2. Raw-material advantage & diversity: With over 23% global cotton cultivation area and strong raw material capacity in cotton, silk, jute, and man-made fibres, India benefits from local supply strength and vertical integration potential.
3. Policy support & infrastructure push: Programmes such as PLI (₹10,683 crore allocation), PM MITRA parks, NTTM, RoSCTL, and skill-skilling initiatives like Samarth have catalysed investments—leading to ₹7,343 crore investment and export-linked turnover of ₹4,648 crore via PLI schemes.
4. Rising global sourcing shift: Global buyers (e.g., Walmart, European brands) pivot toward India amid rising costs and geopolitical tension in China and Bangladesh—India enjoys lower tariffs (e.g. 26% vs 145% for China) and stable trade policies.
5. Growth in technical & sustainable textiles: India’s technical textiles market vaulted to US $26.8 billion in FY24, with increasing innovation in biodegradable, antibacterial, and industrial fabrics. Circular fashion initiatives and green textiles are gaining momentum via policy and start-up efforts.
Weaknesses
1. Fragmented MSME structure & low automation: Around 80% of production remains in micro/small enterprises with outdated machinery, limiting economies of scale and productivity compared to China or Vietnam.
2. High input price volatility: Raw materials like cotton and synthetic fibres face price instability. Recent cotton surges of ₹2,000 per candy in Tirupur hurt yarn margins and export cost competitiveness.
3. Complex regulatory and compliance environment: Bureaucratic export documentation, labor laws, licensing hurdles, and quality-control mandates (e.g. upcoming QCO) raise compliance cost and hinder scalability.
4. Skill gap and female workforce underrepresentation: Despite large labor numbers, vocational skill training remains limited; female workforce participation in key clusters like Ludhiana under 10%, pointing to a systemic mismatch between demand and capability.
Opportunities
1. Export expansion & global market share gain: With supportive FTA regimes (e.g., India–UK offering zero tariffs on apparel imports), exports from hubs such as Tiruppur, Surat, and Ludhiana are expected to rise ~30–45% to UK and EU markets. Target: US $65 billion by FY26 and US $100 billion by 2030.
2. Man-made fibre & technical textiles push: Global consumption shifted heavily to MMF (~77% of fibre use in 2024), offering India a chance to grow via fibre-to-fashion integration and innovation projects under NTTM and PLI incentives.
3. Sustainable and circular fashion leadership: Push for eco-friendly manufacturing (solar, biomass boilers, zero-waste apparel), start-up collaborations (e.g. Iro Iro upcycling brand), and revival of indigenous cotton offer strategic differentiation.
4. Digital adoption and automation: AI-driven quality control, smart textiles, technological upgrades, and digital platforms—especially for branding and D2C—are rising priorities among modern textile producers.
5. Capacity building via MITRA parks: PM MITRA parks offer plug-and-play infrastructure, logistics integration, and raw material convergence—positioning states like MP, Gujarat, UP, Karnataka as next-generation cluster nodes.
Threats
1. Intensifying global competition: Bangladesh, Vietnam, and China retain cost and scale advantages—Bangladesh offers labor at US $139/month vs India’s ~$180—challenging price competitiveness, especially in bulk clothing exports.
2. Policy inertia and regulatory red tape: Lengthy labor law reform, environmental regulations, and delayed quality mandates may hinder timely capacity expansion and FDI inflows .
3. Supply chain disruptions and climate risk: Fluctuations in cotton yields, climate-induced weather events, or delays in high-speed textile machinery QCO implementation may disrupt operations.
4. ESG and compliance pressure from buyers: Global brands demand sustainability, labor compliance, and low carbon footprint; non-compliance can exclude firms from global supply chains .
5. Innovation stagnation and weak adoption in clusters: Cities like Ludhiana lack innovation drive; Chinese brands control ~75% of sewing machine market, indicating weak indigenous manufacturing upgrade pace.
Future Outlook
Heading into 2026–2030, India’s textile industry finds itself at an inflection point. With government backing and clear export ambitions, the sector is poised for:
Exports reaching US $65 billion by FY 2026 and aiming for US $100 billion by 2030, supported by FTAs and PLI investments.
Domestic textiles and apparel market projected to grow at ~10% CAGR, reaching US $350 billion by 2030 .
Expansion of technical textiles 💡 in sectors like healthcare, infrastructure, and automotive, driven by innovation under NTTM.
Adoption of circular and sustainable practices, with MITRA park-linked clusters and player-led eco-brands scaling up.
Digitalization wave across MSMEs—automation, AI quality control, traceability, and direct-to-consumer platforms transforming supply chains.
Strategic priorities:
- Vertical integration: From cotton to garment under single roof via MITRA infrastructure.
- Skill development & automation: Address workforce gaps and upgrade low-tech MSMEs.
- Export diversification: Leverage FTAs to expand into EU, UK, Latin America.
- Sustainability credentials: Certifications, eco-branding, and circular fashion adoption.
- Innovation ecosystems: Incubate R&D in technical textiles, smart fabrics, and bio-based fibres.
If the textile industry can align policy momentum with industry modernization, sustainability standards, and technological upgradation, India stands to strengthen its global textile leadership—generating jobs, boosting exports, and sustaining inclusive growth through 2030.