India Textiles Trade
India is the world's second-largest textile manufacturer and the sixth-largest textile exporter globally. The sector employs over 45 million people — making it one of India's largest employers outside agriculture — and contributes roughly 11% of total merchandise exports.
The textile value chain runs from raw fibre (cotton, man-made fibre) through spinning, weaving, knitting, processing, and finally garment manufacturing. India has strength across the chain, with clusters in Tiruppur (knitwear), Surat (synthetic fabric), Ludhiana (woolens), and various garment hubs in NCR, Bengaluru, and Chennai.
A persistent challenge has been Bangladesh's dominance in garment exports to the EU and UK, enabled by duty-free access under Least Developed Country (LDC) trade preferences. India does not have equivalent access. As Bangladesh graduates out of LDC status, India has an opportunity to capture market share — but this hinges on FTAs with the EU and UK being concluded.
| Year | Exports | YoY | Imports | YoY | Balance |
|---|---|---|---|---|---|
| FY 2025-26 | $15.6B | -58.7% | $4.4B | -55.5% | +$11.1B |
| FY 2024-25 | $37.7B | +6.0% | $9.9B | +9.6% | +$27.8B |
| FY 2023-24 | $35.5B | -2.1% | $9.0B | -16.0% | +$26.5B |
| FY 2022-23 | $36.3B | -17.8% | $10.8B | +27.8% | +$25.5B |
| FY 2021-22 | $44.1B | +40.8% | $8.4B | +42.0% | +$35.7B |
- →45 million+ employed in India's textile sector
- →Bangladesh and Vietnam are India's primary garment export competitors
- →India needs EU/UK FTAs to compete on duty-free terms with LDC exporters
- →Man-made fibre (MMF) apparel is the fastest-growing export segment
- →Tiruppur, Surat, Ludhiana are key export production clusters
Listed textile exporters include Welspun India (home textiles), KPR Mill, Kitex Garments, Arvind Ltd, TCNS Clothing, and Vardhman Textiles. Home textiles (bedsheets, towels) destined for the US market are India's most consistent performing sub-segment. Apparel exporters benefit from rupee depreciation and suffer from western consumer spending slowdowns.