The Indian textile and apparel industry, valued at approximately $176 billion, continues to play a crucial role in the country’s economy, contributing nearly 2% to the Gross Domestic Product (GDP) and accounting for about 11% of manufacturing output. With over 45 million workers employed directly, the sector remains one of the largest sources of employment in the country. India is also the sixth-largest global exporter of textiles and apparel, holding around 4% of the market share in the segment.
The Union Budget 2025-26 has allocated Rs. 5,272 crore to the Ministry of Textiles, marking a 19% increase from the previous year’s budget of Rs. 4,417.03 crore. This is the highest allocation in recent years, demonstrating the government’s commitment to strengthening the sector. The budget for the Production Linked Incentive (PLI) Scheme for textiles has also seen a significant rise, from Rs. 45 crore in 2024-25 to Rs. 1,148 crore this year. The PLI scheme, with a total outlay of Rs. 10,683 crore over five years, aims to enhance India’s manufacturing capabilities and exports, particularly in the man-made fiber (MMF) and technical textiles segment.
A new ‘Mission for Cotton Productivity’ has been announced as a five-year initiative to improve the yield and sustainability of cotton farming. This program will be jointly implemented by the Ministry of Agriculture & Family Welfare and the Ministry of Textiles, with a special focus on promoting extra-long staple cotton varieties.
To curb the influx of low-cost textile imports, the Budget has increased the Basic Custom Duty (BCD) on knitted fabrics covered by nine tariff lines from “10% or 20%” to “20% or Rs. 115 per kg, whichever is higher.” This move aims to support domestic fabric manufacturers, boost local production, and encourage investment in textile manufacturing.
In a major industry push, Bharat Tex 2025, one of the world’s largest textile expos, is set to take place from February 14-17, 2025, at Bharat Mandapam, New Delhi. Organized by 11 leading textile industry bodies and supported by the Ministry of Textiles, the event will bring together stakeholders across the textile value chain. Parallel exhibitions on garment machinery, dyes and chemicals, and handicrafts will be held from February 12-15 at the India Expo Centre, Greater Noida. The event will focus on sustainability, innovation, and strengthening global value chains.