India Trade / Textiles

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.

Exports — FY 2025-26

$15.6B

▼ 58.7% YoY

Imports — FY 2025-26

$4.4B

▼ 55.5% YoY

Trade Surplus — FY 2025-26

$11.1B

ANNUAL TREND — TEXTILES (USD BN)■ Exports■ Imports

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

Top Export Commodities

HS 62 — Articles of apparel and clothing accessories, not

8.3B1.9% of total exports+6.4% YoY

HS 61 — Articles of apparel and clothing accessories, knit

7.7B1.8% of total exports+14.3% YoY

HS 52 — Cotton

6.3B1.4% of total exports-6.6% YoY

HS 63 — Other made up textile articles; sets; worn clothin

6.1B1.4% of total exports+9.3% YoY

KEY POINTS

→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

INVESTOR ANGLE

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.

FREQUENTLY ASKED QUESTIONS

Why is India not the world's top garment exporter despite being a large producer?

Bangladesh, China, and Vietnam have structural advantages: Bangladesh has duty-free access to EU/UK under LDC preferences; China has scale and supply chain depth; Vietnam benefits from multiple FTAs. India lacks equivalent tariff access to major markets, making its garments costlier for buyers, which limits volume growth.

What is the PMMITRA textile park scheme?

PM Mega Integrated Textile Region and Apparel (MITRA) parks aim to create 7 large integrated textile clusters with world-class infrastructure, plug-and-play facilities, and common utilities. The goal is to reduce India's fragmentation disadvantage and achieve the scale needed to compete with Vietnam and Bangladesh.

Which Indian textiles have the strongest export demand?

Home textiles (bed linen, terry towels) destined for the US and EU are India's strongest segment — led by Welspun, Trident, and Himatsingka. Technical textiles (geo-textiles, medical textiles) are a high-growth emerging segment. Knitwear from Tiruppur is also well-established globally.

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