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Industry brief · Textiles

Textiles, where our guest weaves cotton

One Building Real founder works in textiles. In India, Nanda Kumar and his co-founder weave their own cotton into natural-fibre home textiles and sell them under their own brand. This brief covers the industry around them in India, from cotton and jobs to exports, trade deals, government schemes and the rules on fibres and chemicals.

India
Checked 20 Oct 2026 · every figure linked to its source · next review Jan 2027

01At a glance

~2%

of India's GDP and about 11% of manufacturing gross value added come from the textile and apparel industry, according to a February 2026 government backgrounder1

Approximate shares; the backgrounder gives no base year
45M+

people in direct employment in India's textile sector, the second-largest employer after agriculture, according to 2025 estimates in a February 2026 government backgrounder2

Government estimate for 2025
US$37.8B

India's textile and apparel exports, including handicrafts, in 2024-25, 8.63% of India's total exports, with a trade surplus of US$28.2 billion3

Latest official dollar figure. The 2025-26 export figures further down are in rupees and are not comparable
55%

of India's textile and apparel exports went to the USA, EU and UK together, according to the Ministry of Textiles' 2025 year-end review4

The review gives no year for this share
~6M

farmers supported by India's cotton sector; India is the world's largest cultivator of cotton by acreage5

Largest by acreage, not by output
35.22 lakh

handloom weavers and allied workers counted by India's Fourth All India Handloom Census (2019-20), more than 72% of them women, with 28.20 lakh looms6

The latest handloom census, from 2019-20

02How AI and digital tools are reshaping it

Small firms are behind on digital tools

The ILO says many textile SMEs have been slower to adopt digital pattern-drafting and 3D-modelling tools, which heightens competitive pressure from technologically more advanced firms7.

The ILO also notes that labour-intensive industries such as textiles and apparel show slower productivity growth because of smaller firm size, thinner margins and reliance on manual labour8.

Both points come from an ILO discussion document for an April 2026 technical meeting. They are global and qualitative; we found no India data on AI adoption in textiles.

Who does the work

  • Women. Textiles, apparel, leather and related products is the only manufacturing industry in which women make up a majority of the workforce, the ILO says9.
  • Skilling. By December 2025, India's Samarth skilling scheme had trained about 5.41 lakh people for the textile sector, about 88% of them women, and the government says over 4.05 lakh (75%) were placed in jobs10.
The ILO statement is global. The Samarth figures are cumulative to December 2025, and the placement figure is the government's own.

03Where the money is moving

How big the industry is

In June 2026 Textiles Minister Giriraj Singh said India's textile industry had grown to nearly US$190 billion in 2025-26 and was poised to reach a target of US$350 billion by 203011.

The minister speaking to the media, not a Ministry dataset; no method was given. Other official documents give a different size, so we use only this one.

Exports in 2025-26, in rupee terms

2.1%

rise in rupee terms in India's textile exports, including handicrafts, to Rs 3,16,334.9 crore in 2025-26, according to Ministry of Textiles data reported by The Statesman12

India's textile exports by category, 2025-26 (Rs crore, rupee terms)

Ready-made garments
1,39,349.6
Cotton yarn, fabrics, made-ups, handloom
1,02,399.7
Man-made yarn, fabrics, made-ups
42,687.8

In 2025-26, in rupee terms, ready-made garment exports rose 2.9% to Rs 1,39,349.6 crore, exports of cotton yarn, fabrics, made-ups and handloom products rose 0.4% to Rs 1,02,399.7 crore, and exports of man-made yarn, fabrics and made-ups rose 3.6% to Rs 42,687.8 crore13.

Rupee figures. A rise in rupees is not a rise in dollars, and these figures should not be set against the dollar figure for 2024-25 in At a glance.

Where exports go, and new trade deals

~30%

of US home-textile imports came from India in calendar 2024, behind China at about 34%, according to Crisil Ratings citing OTEXA data14

  • UK, in force. The India-UK Comprehensive Economic and Trade Agreement entered into force on 15 July 2026; India's government says it gives zero-duty market access for nearly 99% of India's exports15.
  • UK, textiles. Under the agreement, Indian textiles and clothing get zero-duty access to the UK, down from an earlier 12% duty; India's government describes India as the UK's fourth-largest textile supplier with a 6.1% market share, and names home textiles and carpets among the sectors poised for growth16.
  • EU, not yet in force. In February 2026 India's government said the India-EU free trade agreement would give zero-duty access for textiles and clothing across all tariff lines, reducing tariffs by up to 12%17.
The UK supplier ranking comes from a July 2025 government note, before the deal took effect. The EU agreement has been negotiated but not shown to be in force.

Government schemes: outlays, MoUs and proposals

  • PLI. As of December 2025, India's PLI scheme for textiles (outlay Rs 10,683 crore), covering man-made-fibre apparel and fabrics and technical textiles, had 74 selected applications with Rs 28,711 crore of proposed investment and a projected turnover of Rs 2,16,760 crore18.
  • PLI payouts. Of the 74 PLI-textiles companies, 56.75% are in technical textiles, and by December 2025 a provisional incentive of Rs 54 crore had been paid to two applicants that met their FY2024-25 investment and sales thresholds19.
  • PM MITRA parks. India has approved seven PM MITRA mega textile parks with an outlay of Rs 4,445 crore over seven years to 2027-28; by December 2025 investment MoUs worth over Rs 27,434 crore had been signed20.
  • PM MITRA, the minister's view. In June 2026 the Textiles Minister said the seven PM MITRA parks are expected to attract investment of ₹70,000 crore and generate about 21 lakh jobs21.
  • Technical textiles. By December 2025 India's National Technical Textiles Mission (outlay Rs 1,480 crore) had approved 168 R&D projects in speciality fibres and applications worth Rs 520 crore, and 24 startups22. In June 2026 the minister said India's technical-textiles market had expanded from about US$6 billion to US$25 billion under the mission23.
  • Handloom. India's handloom exports were about ₹1,330.96 crore in 2025-26, and the National Handloom Development Programme and Raw Material Supply Scheme have 2026-27 allocations of ₹205 crore and ₹200 crore24.
Outlays and allocations are budgets, not spending. MoUs and the minister's expectations are not realised investment. The minister gave no start year or method for the technical-textiles figures.

04Cotton, fibres and chemicals

Cotton: the crop and state buying

339 lakh

bales of 170 kg each: the Cotton Association of India's August 2026 estimate of India's 2025-26 cotton pressing, raised from 337 lakh bales25

An estimate by a trade body, not the government.

In the 2024-25 cotton season the Cotton Corporation of India bought 525 lakh quintals of seed cotton (100 lakh bales) under MSP operations, paying ₹37,450 crore to farmers and covering 38% of arrivals and 34% of national production26.

Synthetic fibre dominates

Share of global fibre production, 2025 (Textile Exchange)

Polyester
59%
Cotton
18%

Polyester made up 59% of global fibre production in 2025 and cotton 18%, out of an estimated 139 million tonnes, according to Textile Exchange27.

Global figures; Textile Exchange gives no India breakdown. Other fibres make up the rest.

Crisil Ratings says polyester yarn (POY) cost Rs 100-120 per kg in fiscal 2025, against Rs 240-260 per kg for cotton yarn28.

Chemical and product standards

  • OEKO-TEX. OEKO-TEX says it issued 60,495 certificates and labels in 2025/2026, up from 57,412 the year before, growth it puts at 5%; STANDARD 100 certificates numbered 36,592, against 36,543 a year earlier29.
  • ZDHC. ZDHC, the textile industry's chemical-management programme, reports that suppliers in its committed community reached average conformance of 78.93% with its Manufacturing Restricted Substances List in 202530.
Both are the organisations' own global counts, with no India figures. The ZDHC figure is not a measure of river pollution.

05What the government is changing

  1. Fibre inputs. India's Department of Chemicals & Petrochemicals rescinded 14 Quality Control Orders, seven of them on products used in man-made-fibre textiles, including terephthalic acid, ethylene glycol, polyester staple fibre and polyester yarns31.
  2. GST. Under GST changes recommended by the 56th GST Council, readymade garments and made-ups priced up to ₹2,500 per piece attract 5% GST (the earlier limit was ₹1,000), and GST on man-made fibres was cut from 18% to 5% and on man-made yarns from 12% to 5%32.
  3. Cotton branding. The Ministry of Textiles' year-end review reported that the government has launched 'Kasturi Cotton Bharat', a programme built on certification, traceability and branding to raise global market acceptance of Indian cotton33.
  4. Budget 2026-27. The budget announced Mega Textile Parks in challenge mode and an Integrated Programme for textiles with five parts: a National Fibre Scheme, a Textile Expansion and Employment Scheme, a National Handloom and Handicraft Programme, the Tex-Eco Initiative and Samarth 2.034. These are announcements, not funded outlays.
  5. Cotton prices. For the 2026-27 marketing season India set the minimum support price for medium-staple cotton at Rs 8,267 per quintal and long-staple at Rs 8,667, both up Rs 55735.
  6. Cotton bales. India's Ministry of Textiles rescinded its quality control order on cotton bales with immediate effect by an order dated 9 June 202636.
  7. UK trade. The India-UK Comprehensive Economic and Trade Agreement entered into force on 15 July 202615.

06Trends to watch

Rules on fibre inputs are loosening

In November 2025 India rescinded 14 Quality Control Orders, seven of them on products used in man-made-fibre textiles31, and in June 2026 it rescinded the order on cotton bales36. Crisil Ratings said in November 2025 that removing QCO norms would improve the supply of cheaper imported yarn, but that the home-textile segment may see a limited positive impact due to its higher dependence on cotton-based exports37.

Tax cuts on man-made fibre

GST on man-made fibres was cut from 18% to 5% and on man-made yarns from 12% to 5%32. Globally, polyester made up 59% of fibre production in 2025 and cotton 18%27, and Crisil puts polyester yarn at Rs 100-120 per kg in fiscal 2025 against Rs 240-260 for cotton yarn28.

Exports lean on three markets, and trade deals are shifting

The USA, EU and UK together took 55% of India's textile and apparel exports, according to the Ministry of Textiles4. The UK agreement has been in force since 15 July 202615, while the EU agreement, which the government said would give zero-duty access for textiles and clothing, is not yet in force17.

Scheme money is mostly committed, not yet paid

The PLI scheme for textiles has a Rs 10,683 crore outlay and Rs 28,711 crore of proposed investment18, but by December 2025 a provisional incentive of Rs 54 crore had been paid to two applicants19. The PM MITRA parks have investment MoUs worth over Rs 27,434 crore20.

Small, manual firms are slower to digitise

The ILO says many textile SMEs have been slower to adopt digital pattern-drafting and 3D-modelling tools, and that labour-intensive industries such as textiles and apparel show slower productivity growth because of smaller firm size, thinner margins and reliance on manual labour78.

07The problems our guests are solving

Nanda Kumar on Building Real
India

EP04Nanda Kumar · The Yellow Dwelling

Rs 240-260

per kg for cotton yarn in fiscal 2025, against Rs 100-120 per kg for polyester yarn (POY), according to Crisil Ratings28

Rs 8,267

per quintal: India's minimum support price for medium-staple cotton in the 2026-27 marketing season, and Rs 8,667 for long-staple, both up Rs 55735

Nanda Kumar says he and Abhinaya left FMCG and finance careers to build a natural-fibre home-textiles brand. In the episode he explains why they weave their own cotton and sell through their own stores, and says the business has stayed profitable every month without outside funding.

Watch the episode →

See how these conversations connect on the Discovery Atlas →

08Sources

One research agent gathered 41 figures from government, regulator and established data sources. A separate red-team agent then reopened every source, checked each number, its scope and its date, and looked for newer or conflicting data. It kept 25 figures as written, corrected 16 and cut 0. Each figure above links to its source below, with the date it refers to.

  1. PIB backgrounder, Union Budget 2026-27: Strengthening India's Textile Value Chain, 4 Feb 2026 · As stated 4 Feb 2026 (base year not given)
  2. PIB backgrounder, Union Budget 2026-27: Strengthening India's Textile Value Chain, 4 Feb 2026 · 2025 estimates (published 4 Feb 2026)
  3. PIB: Year End Review 2025 of Ministry of Textiles, 24 Dec 2025 · 2024 (rank); FY2024-25 (value)
  4. PIB: Year End Review 2025 of Ministry of Textiles, 24 Dec 2025 · Stated 24 Dec 2025 (period not given; context FY2024-25)
  5. PIB backgrounder, Union Budget 2026-27: Strengthening India's Textile Value Chain, 4 Feb 2026 · As stated 4 Feb 2026
  6. PIB backgrounder: National Handloom Day 2026, 6 Aug 2026 · Fourth All India Handloom Census 2019-20 (latest)
  7. ILO, TMDWAI/2026, 2026 · ILO discussion document for 13-17 Apr 2026 technical meeting
  8. ILO, TMDWAI/2026, 2026 · ILO discussion document for 13-17 Apr 2026 technical meeting
  9. ILO, TMDWAI/2026, 2026 · ILO discussion document for 13-17 Apr 2026 technical meeting
  10. PIB: Year End Review 2025 of Ministry of Textiles, 24 Dec 2025 · Cumulative, reported 24 Dec 2025
  11. PIB (Ministry of Textiles) release, 11 Jun 2026 · FY2025-26 (stated 11 Jun 2026)
  12. The Statesman (Ministry of Textiles data), 22 Apr 2026 · FY2025-26, rupee terms
  13. The Statesman (Ministry of Textiles data), 22 Apr 2026 · FY2025-26, rupee terms
  14. Crisil Ratings press release (citing OTEXA), 11 Sep 2025 · Calendar year 2024
  15. PIB: India–UK CETA and Agreement on Social Security Enter into Force, 15 Jul 2026 · In force 15 Jul 2026
  16. PIB backgrounder: India–UK CETA, 27 Jul 2025 · Government note, 27 Jul 2025 (trade-data year not given; pre-entry-into-force)
  17. PIB backgrounder, Union Budget 2026-27: Strengthening India's Textile Value Chain, 4 Feb 2026 · Negotiated terms as stated 4 Feb 2026 (not in force as far as this review found)
  18. PIB: Year End Review 2025 of Ministry of Textiles, 24 Dec 2025 · Status as of 24 Dec 2025
  19. PIB: Year End Review 2025 of Ministry of Textiles, 24 Dec 2025 · Reported 24 Dec 2025 (FY2024-25 thresholds)
  20. PIB: Year End Review 2025 of Ministry of Textiles, 24 Dec 2025 · Status as of 24 Dec 2025
  21. PIB (Ministry of Textiles) release, 11 Jun 2026 · Expectation stated 11 Jun 2026
  22. PIB: Year End Review 2025 of Ministry of Textiles, 24 Dec 2025 · Status as of 24 Dec 2025
  23. PIB (Ministry of Textiles) release, 11 Jun 2026 · Stated 11 Jun 2026 (start year not given)
  24. PIB backgrounder: National Handloom Day 2026, 6 Aug 2026 · FY2025-26 (exports); 2026-27 (allocations)
  25. KNN India (reporting Cotton Association of India), 12 Aug 2026 · Cotton season 2025-26 (CAI estimate, 12 Aug 2026)
  26. PIB: Year End Review 2025 of Ministry of Textiles, 24 Dec 2025 · Cotton season 2024-25
  27. Textile Exchange, Materials Market Report 2026, 22 Sep 2026 · 2025 data (report 22 Sep 2026)
  28. Crisil Ratings press release, 20 Nov 2025 · FY2025 ('last fiscal', stated 20 Nov 2025)
  29. OEKO-TEX Annual Report 2025/2026, Sep 2026 · Financial year 2025/2026 (months not stated)
  30. ZDHC Foundation, Impact Report 2025 (page undated) · 2025
  31. PTI via The Week, 14 Nov 2025 · Nov 2025
  32. PIB: Year End Review 2025 of Ministry of Textiles, 24 Dec 2025 · 56th GST Council recommendations (reported 24 Dec 2025)
  33. PIB: Year End Review 2025 of Ministry of Textiles, 24 Dec 2025 · Reported 24 Dec 2025
  34. PIB backgrounder, Union Budget 2026-27: Strengthening India's Textile Value Chain, 4 Feb 2026 · Union Budget 2026-27 (4 Feb 2026)
  35. PIB: Cabinet approves MSP for Kharif Crops for Marketing Season 2026-27, 13 May 2026 · Kharif marketing season 2026-27 (approved 13 May 2026)
  36. Gazette of India, Ministry of Textiles, S.O. 2956(E), 9 Jun 2026 · 9 Jun 2026
  37. Crisil Ratings press release, 20 Nov 2025 · Outlook, 20 Nov 2025