India's cotton textile exports have fallen 10 per cent over the last three fiscals. Shipments of cotton textiles from India stood at Rs 70,936 crores during 2016-17 as against Rs 72,994 crores in the previous financial year and Rs 71,913 crores in 2014-15. Cotton textiles comprise cotton yarn, other textile yarn, fabrics, made-up articles, cotton raw waste and cotton fabrics and made-ups, which include products like bed sheets, blankets and curtains.

Export of cotton at present is under the open general license. India is among the largest producers and exporters of cotton textile products. India exports cotton textiles to Russia, UK, Australia, Sri Lanka, Iran, Germany, Belgium, Italy etc. The cotton textile industry requires raw cotton as the principal raw material and chemicals like caustic soda, dyes, arrowroot or starch etc. Cotton growing regions are Maharashtra, Gujarat, Karnataka, Tamil Nadu, etc.

However, cotton textile industry in India faces some problems. Long staple cotton is not well grown in many parts of India. Many of the factories are old and, as such, productivity has been lowered. Plants and machinery employed in many textile mills are out of date. There is competition from synthetic fibers like polyester etc. The high cost of production is retarding the growth of the industry.