India's textile industry targets USD 350 billion by 2030 as exports rebound: Report
New Delhi, October 26
India's textile industry expanded to nearly USD 190 billion in FY26 and now targets USD 350 billion by 2030, driven by domestic demand, manufacturing investments, and export opportunities, according to the latest report by Rubix Data Sciences.
The report noted that the sector remains a primary employment generator while the central government considers a Rs 400 billion, five-year Textile Expansion and Employment (TEEM) Scheme to upgrade machinery, deploy advanced technology, and modernise traditional clusters.
The expansion comes as outbound shipments rebound. Textile exports, including handicrafts, grew by 10.3 per cent year-on-year in the April-August 2026 period. The recovery follows a 2.7 per cent decline to USD 35.8 billion in FY2026, even as imports climbed 17.1 per cent to USD 9.6 billion.
Despite the divergence, India maintained a net exporter position, with total outbound shipments standing at nearly 3.7 times the value of inbound shipments. Readymade garments retained a 44 per cent share of exports, while man-made fibre textiles accounted for 15 per cent.
Tushar Bhaskar, President of Rubix Data Sciences, noted that the sector continues to navigate external headwinds alongside domestic growth.
"India's textile industry has shown resilience, with exports growing 10.3% in April-August 2026 after a 2.7% decline in Dollar terms in FY2026," Bhaskar said.
"At the same time, trade uncertainty in the US market, a rise of approximately 60% in cotton yarn prices, and freight disruptions are adding to the pressure," he added. "This reinforces the importance of diversifying India's export destinations and improving cost competitiveness."
According to the report, the United States remained India's largest destination, taking 31 per cent of shipments in FY2026, followed by the European Union at nearly 16 per cent. However, trade dynamics shifted after the US introduced an additional 10 per cent duty under Section 301 measures in July 2026 concerning forced-labour enforcement, while broader negotiations stalled.
In response, domestic manufacturers accelerated market diversification. Shipments to the US fell approximately 7 per cent in FY2026, while deliveries to major European markets grew 9 per cent. Raymond Lifestyle plans to reduce its US export share from 65 per cent to between 55 and 60 per cent within two years, while Kitex Garments plans to lower its exposure from nearly 100 per cent to between 30 and 35 per cent over the next two to three years.
Input cost inflation also affected the domestic value chain. Cotton yarn prices climbed roughly 60 per cent to Rs 400 per kilogram in September 2026 from Rs 250 per kilogram in early 2026. The increase coincided with local cotton production dropping to 290.91 lakh bales in the 2025-26 season, down from 352.48 lakh bales in 2020-21. To assist mills, authorities granted an exemption on the 11 per cent cotton import duty through October 31, 2026.
Industrial infrastructure activity provided capital momentum. Investment proposals under the seven approved PM Mega Integrated Textile Region and Apparel Parks reached Rs 685.9 billion by August 2026, led by major expansion outlays from corporate producers including Grasim Industries and Vardhman Textiles.
— ANI
Leave a comment