The Indian textile sector contributes 16 per cent to the country's GDP. But when only 16 per cent of the GDP comes from manufacturing, it is not enough for a sustainable economy. Thus it is necessary to scale up that contribution.

Foreign direct investment is being encouraged in the textile sector, which has the potential to create millions of jobs. The textile sector is capable of strengthening the rural economy and creating large-scale employment. However, the Indian textile industry is over-dependent on the European Union and the US for exports. But when the season goes away in those markets, there aren’t enough orders. The sector doesn't have markets in other parts of the world. So it is exploring new markets like Latin America and Australia for Indian fabrics, garments and apparels in order to boost exports.

Efforts are on to make khadi a globally accepted garment. A survey in 21 overseas markets revealed, khadi was the most recalled Indian brand, along with yoga. The industry wants a uniform textile policy across the country. This is seen as necessary since if one state offers subsidies, textile units in other parts shut down and shift to that state. India aims at doubling the annual revenue of the textile industry in the country by 2025.