In 2013-2014, India had overtaken Italy and Germany and become the second largest textile exporter in the world. However, there has been a downslide since then. Overall export of cotton textiles has declined by over 30 per cent in the past three years. The volume of cotton yarn exports declined 15 per cent from 2015 to 2016. Other textiles (yarn, fabric, made up articles) declined by 10 per cent during 2014-15. Raw cotton (including waste) recorded an overall decline of 14 per cent. Cotton fabrics recorded an overall decline of five per cent. This decline is expected to add to the existing distress in the economy.

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 ranks 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 in India faces numerous problems. Some of these are: Long staple cotton is grown much in India. Many factories are old and productivity is lowered.