India’s Textile Industry Targets $350 Billion by 2030 as Exports Rebound and Investments Rise

India’s textile industry reached $190 billion in FY26 and targets $350 billion by 2030, supported by recovering exports, manufacturing investments, modernisation and expanding domestic demand.

India’s Textile Industry Targets $350 Billion by 2030 as Exports Recover

India’s textile industry is targeting significant growth over the next four years, with its market value projected to rise from approximately ₹16.79 lakh crore ($190 billion) in FY26 to ₹33.27 lakh crore ($350 billion) by 2030. According to a report by Rubix Data Sciences, domestic consumption, manufacturing investments and improved export opportunities are expected to support this expansion.

The sector remains an important contributor to employment and manufacturing in India. However, achieving the target will depend on export performance, cost management, technology adoption and the industry's ability to compete in international markets.

India Textile Industry Growth Target: $350 Billion by 2030

The textile and apparel industry is preparing for a new phase of expansion as businesses respond to changing consumer demand and opportunities in global markets.

The projected increase to $350 billion by 2030 highlights the sector's potential for growth. Investment in production facilities, machinery and modern manufacturing processes could help companies improve productivity and expand their product offerings.

Government initiatives aimed at strengthening textile infrastructure and traditional manufacturing clusters are also expected to play a role in the industry's development.

Government Considers ₹40,000 Crore TEEM Scheme

The Central Government is considering a five-year Textile Expansion and Employment (TEEM) Scheme with a proposed outlay of ₹40,000 crore ($4.21 billion).

The proposed programme is intended to support the modernisation of textile machinery, encourage the adoption of advanced technologies and upgrade traditional textile clusters.

If implemented, the scheme could help manufacturers improve operational efficiency, strengthen production capabilities and respond more effectively to changing market requirements. Its final structure and implementation details remain subject to official confirmation.

Textile Exports Recover in FY27

India's textile exports, including handicrafts, increased by 10.30% year-on-year between April and August 2026, according to the supplied industry figures.

The improvement follows a challenging FY26, when exports declined by 2.70% to approximately ₹3.17 lakh crore ($35.80 billion).

Imports moved in the opposite direction, increasing by 17.10% to ₹84,835.2 crore ($9.60 billion) in FY26. Despite this rise, the value of exports remained approximately 3.7 times that of imports.

Readymade Garments Lead Export Categories

Readymade garments accounted for 44% of India's textile exports, making them the largest category. Man-made fibre textiles contributed another 15%.

These segments remain important to India's position in international textile markets. Expanding product diversity and improving manufacturing competitiveness could help exporters capture additional demand.

Rising Cotton Prices Put Pressure on Manufacturers

Despite the export recovery, textile manufacturers are facing higher input costs, particularly for cotton yarn.

Cotton yarn prices reportedly climbed by around 60%, reaching ₹400 per kilogram in September 2026 compared with ₹250 per kilogram in early 2026.

The increase comes amid a decline in domestic cotton production to 290.91 lakh bales during the 2025–26 season. Higher raw-material costs can put pressure on manufacturers' margins and make pricing more difficult in competitive export markets.

Cotton Import Duty Relief for Textile Mills

To provide relief to the industry, the government extended the exemption from the 11% cotton import duty until October 31, 2026.

The measure was intended to ease access to imported cotton and help mills manage supply and cost pressures. The broader impact will depend on cotton availability, international prices and the industry's future input requirements.

US and European Union Remain Key Export Markets

The United States remained India's largest textile export destination in FY26, accounting for 31% of shipments. The European Union ranked second, with a share of nearly 16%.

However, export trends differed between the two markets. Shipments to the US declined by around 7%, while exports to major European markets increased by 9%.

These changes highlight the importance of maintaining access to established markets while developing additional international opportunities.

Exporters Diversify to Manage Trade Uncertainty

International trade uncertainty and changing market conditions are encouraging Indian manufacturers to diversify their export destinations.

Reducing dependence on a limited number of markets can help exporters manage fluctuations in demand and trade-related risks. Expanding their international customer base may also create opportunities for businesses specialising in garments, technical textiles and man-made fibres.

PM Mega Textile Parks Attract Investment Proposals

Investment interest is another factor supporting the industry's expansion. By August 2026, proposals under the seven approved PM Mega Integrated Textile Region and Apparel Parks had reached ₹68,590 crore ($7.21 billion).

The parks are intended to support integrated textile manufacturing, improve infrastructure and encourage investment across different stages of the value chain.

Such developments could help companies expand production capacity, modernise operations and improve coordination between textile processing, garment manufacturing and related activities.

Conclusion

India's textile industry is targeting $350 billion by 2030, supported by recovering exports, proposed government assistance and substantial investment interest. However, rising cotton prices and international trade uncertainties remain key challenges. Progress in modernisation, export diversification and manufacturing efficiency will be crucial to achieving the industry's growth ambitions.