The Indian textile and clothing industry, one of the country’s most significant economic drivers, is navigating global headwinds with optimism. Despite trade challenges, particularly from recent U.S. tariff measures, the sector has set its sights on achieving a USD 350 billion market size by 2030. With strong government support, sustainability initiatives, and an innovation-driven mindset, the industry is preparing for its next phase of growth.

Growth and Export Outlook

India’s textile exports remain heavily dependent on the U.S., which accounts for nearly 28% of total exports valued at around USD 11 billion. While tariff barriers may dampen near-term export momentum, robust domestic consumption is expected to cushion the impact. Industry leaders are also emphasizing diversification into new global markets and tapping into innovative product lines, especially in man-made fibers (MMF).

Government Initiatives Boosting the Sector

The Government of India has rolled out multiple initiatives to strengthen competitiveness and productivity:

• Removal of 11% import duty on cotton (till December 2025).
• Launch of the Mission for Cotton Productivity with an outlay of ₹5,900 crores.
• GST reforms: unified 5% slab for textiles and reduction of duty on MMF from 18% to 5%.
• Refund mechanism ensuring 90% of dues within 7 days for impacted products.

In addition, committees have been set up to address compliance hurdles around Quality Control Orders (QCOs), focusing on easing business processes and encouraging innovation.

Key Data: Indian Textile & Clothing Industry

Indicator	Current Status / Action	Outlook
Market Size Target	USD 350 billion by 2030	Strong growth potential
U.S. Share of Exports	28% (~USD 11 billion)	Diversification needed
Import Duty on Cotton	11% duty removed till Dec 2025	Boosts raw material access
Mission for Cotton Productivity	₹5,900 crores allocated	Productivity & yield gains
GST Reform	Unified 5% slab; MMF duty cut from 18% → 5%	Improves cost competitiveness
Refunds for Textile Dues	90% refund within 7 days	Enhances liquidity
Domestic Consumption	Rising steadily	Cushion for export slowdowns

Leadership and Next-Gen Perspectives

Industry leaders like Mr. Durai Palanisamy highlight that innovation and cost competitiveness, backed by supportive policies, will be pivotal in overcoming trade challenges. He urges next-generation entrepreneurs to build indigenous volumes through new product development and advanced manufacturing.

Sustainability: The Future of Textiles

Sustainability is emerging as a central theme for the industry. Companies such as Sulochana Cotton Spg Mills are pioneering eco-friendly practices, including converting PET bottles into textile fibers. Such initiatives align with global sustainability goals while opening new market opportunities for Indian manufacturers.

Outlook

The Indian textile and clothing industry is at an inflection point. By leveraging government support, diversifying export markets, investing in innovation, and embracing sustainable practices, the sector is positioning itself as a global leader. With a clear roadmap, India’s ambition of reaching USD 350 billion by 2030 looks achievable despite the challenges.