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India's Textile Sector Faces Global Headwinds, Must Harness Domestic Market

Telangana Industries Minister D. Sridhar Babu stated that global factors like US tariff measures and the West Asia conflict are adversely affecting the textile industry. He emphasized that India must pivot towards its vast domestic market of 140 crore people to sustain growth and build resilience. The minister highlighted India's strengths, including technology, skilled weavers, and a complete manufacturing value chain, as key to unlocking the sector's potential. He also noted the textile industry's critical role as a major generator of employment across the supply chain.

Key Points: India Textile Sector Impacted by Tariffs, Conflict: Minister

  • US tariffs impact textile sector
  • West Asia conflict adds pressure
  • Focus on India's 140 crore domestic market
  • Leverage tech and traditional skills
  • Sector key for large-scale employment
3 min read

Tariffs, West Asia conflict impacting textile sector, India must tap domestic market potential: Telangana Minister

Telangana Minister says US tariffs & West Asia conflict impact textiles. India must leverage its domestic market, tech, and skills for growth.

"We have a huge market here. How do we tap the huge market in India itself? - D. Sridhar Babu"

Hyderabad, April 3

Telangana Industries Minister D. Sridhar Babu on Thursday said that global developments such as US tariff measures and the ongoing West Asia conflict are impacting the textile industry, and stressed the need for India to focus on its large domestic market to sustain growth.

Speaking to the media at the 13th Asian Textile Conference (ATEXCON 2026), the minister highlighted that the textile sector was among the first to be affected by rising trade barriers.

"Over a period of a year or so, when the USA imposed high tariffs, the first industry which got impacted was textiles. And now that the new crisis has come, we have to really see that we can't stop this industry," he said.

He emphasised that India has the necessary strengths to build a resilient textile ecosystem by leveraging its domestic capabilities.

"We have a huge market here. How do we tap the huge market in India itself? We have technology, we have skill, we have weavers... a combination of these things can do miracles," he added.

The minister also pointed to India's large population and consumption potential as a key advantage.

"If you see 140 crore population and the amount of consumption of textiles here alone in India will be enough for any textile big leaders," he noted.

According to data from the Ministry of Textiles, India's global textile and apparel exports, including handicrafts, stood at USD 37.75 billion in 2024-25, registering a growth of 5.2 per cent compared to USD 35.87 billion in 2023-24. India ranked as the 6th largest exporter of textiles and apparel in the world in 2024.

India's textile industry is one of the largest globally, supported by a strong raw material base of natural fibres such as cotton, silk, wool and jute, along with man-made fibres. The country also has manufacturing strength across the entire value chain, from fibre to fabric to garments.

Key export markets for Indian textiles include the UAE, which recorded a growth of 14.5 per cent in 2025, the UK at 1.5 per cent, Japan at 19.0 per cent, Germany at 2.9 per cent, Spain at 9.0 per cent and France at 9.2 per cent. Other markets such as Egypt (27 per cent), Saudi Arabia (12.5 per cent) and Hong Kong (69 per cent) also showed strong growth.

Sridhar Babu further said that the industry must adapt to changing global dynamics by integrating traditional strengths with modern technology.

"We have to create a bridge between our inheritance and the modern world... technology is taking a different turn and the meaning for textiles has to change," he said.

He added that the sector holds significant potential for employment generation and requires a balanced approach that supports farmers, weavers and investors alike.

"This is the only industry where potential is there to create the largest employment. We will seriously view this as an important industry," he said.

- ANI

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Reader Comments

R
Rohit P
Global uncertainties are a wake-up call. Focusing inward is smart. But the government also needs to ensure raw material prices (like cotton) are stable for our farmers and MSMEs. That's the foundation of a resilient ecosystem.
A
Arjun K
Good point about integrating tradition with tech. We have the best handlooms in the world, but we need modern marketing and e-commerce to reach the youth. Make 'Made in India' textiles a fashion statement, not just an export commodity.
S
Sarah B
The employment potential is huge, especially for women in rural areas. Hope the focus on the domestic market translates into better wages and working conditions for the millions of workers in this sector. Growth must be inclusive.
V
Vikram M
While the domestic focus is needed, we can't ignore exports completely. Look at the growth in markets like Hong Kong (69%) and Egypt! We need a dual strategy - serve Bharat and also be a global leader. Jai Hind!
K
Karthik V
Respectfully, this isn't a new idea. We've been talking about tapping domestic potential for years. The real challenge is execution - reducing logistics costs, simplifying GST for textiles, and providing easy credit to small weavers. Hope this time there's action.

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