Start Textile Manufacturing in India: How to Begin, Key Hubs, and 2025 Opportunities

When you decide to start textile manufacturing, the process of turning raw fibers into fabrics for clothing, home goods, or industrial use. Also known as fabric production, it’s one of India’s oldest and most resilient industries, employing over 45 million people and contributing nearly 2% to the nation’s GDP. This isn’t just about sewing machines and looms—it’s about supply chains, government schemes, and regional strengths that have been built over decades.

India’s textile scene isn’t spread evenly. The real action happens in places like Surat, the textile city of India, where over 90% of the country’s synthetic fabric is produced. Also known as India’s fabric capital, Surat handles everything from polyester yarn to high-speed power looms. Then there’s the legacy of Kasturi Bai, the woman who revived handloom weaving during British rule by training hundreds of thousands of women. Also known as the queen of textile in India, her work laid the foundation for today’s sustainable, handcrafted textile movement. These two—modern efficiency in Surat and traditional craft in villages—are the twin engines driving the industry.

If you’re thinking about start textile manufacturing, the 2025 policy changes make now the best time. The new India textile policy 2025, a government initiative offering production-linked incentives (PLI), tax breaks, and support for textile parks. Also known as National Textile Policy 2025, it targets small and medium manufacturers with direct cash support for machinery upgrades and export growth. You don’t need a factory the size of a football field. Many successful starts begin with five power looms in a rented shed, sourcing yarn locally and selling directly to small retailers or online platforms. The biggest hurdle? Not money—it’s knowing where to buy reliable machines, how to navigate export paperwork, and which fabrics actually sell.

Don’t get distracted by luxury fabrics like Banarasi silk or Pashmina wool. Those are high-margin niches, but they require years of expertise. Most new manufacturers begin with plain cotton, polyester blends, or home textiles—bedsheets, towels, curtains. These are the workhorses of the industry. The real profit isn’t in making the most expensive fabric. It’s in making a lot of the right fabric, consistently, and shipping it out before your competitors do.

What you’ll find below are real stories and data from manufacturers who’ve done it—some with under ₹5 lakh, others scaling up with policy help. You’ll see who’s winning in Surat, how Kasturi Bai’s legacy lives on in cooperatives, and what the 2025 policy actually means for your bank account. No theory. No fluff. Just what works when you’re starting from scratch in India’s textile world.