India's textile industry is poised for significant growth, with textile exports expected to reach $65 billion by FY26, as per Invest India. The domestic market, valued at $165 billion in 2022, is projected to grow at a 10 per cent CAGR, hitting $350 billion by 2030.

The sector is a critical employment driver, offering jobs to 45 million directly and supporting another 100 million in allied sectors. Cotton cultivation alone involves around 6 million farmers and up to 50 million people in processing and trade.

India is also the second-largest global producer of personal protective equipment (PPE), with over 600 certified manufacturers, capitalizing on a market that could reach $92.5 billion by 2025.

Government incentives, such as the Rs 10,683 crore Production Linked Incentive (PLI) Scheme, are crucial to this growth. The scheme supports the production of man-made fiber apparel, fabrics, and technical textiles, with 64 approved applications for Rs 19,798 crore in investments. These investments are expected to generate a turnover of Rs 1,93,926 crore and create 2,45,362 jobs, especially in Madhya Pradesh, Uttar Pradesh, and Rajasthan.

Foreign Direct Investment (FDI) in textiles remains strong, with $4.47 billion attracted from April 2000 to March 2024, under the 100 per cent automatic route.

India, a top global textile producer, contributes 2.3 per cent to GDP, 13 per cent to industrial production, and 12 per cent to exports, holding a 4 per cent share in global textile trade.