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India doesn’t just make clothes-it makes the world’s clothes. From handwoven silk in Banaras to mass-produced cotton denim in Tamil Nadu, India’s textile industry is a quiet giant. But where does it stand today? If you’re wondering what rank India holds in global textile production, the answer isn’t just a number-it’s a story of history, scale, and survival.
India is the second-largest textile producer in the world
As of 2025, India ranks second in global textile production, behind only China. That’s not a small achievement. India produces over 60 million metric tons of textile fibers annually. That includes cotton, silk, wool, jute, and synthetic blends. The country spins more cotton yarn than any other nation on Earth. In fact, India accounts for nearly 25% of global cotton yarn production and about 12% of total textile output worldwide.
What makes this even more impressive is that India does this with a mix of ultra-modern mills and millions of small, family-run units. You’ll find power looms running in villages with no internet, while in Surat or Ahmedabad, automated jacquard machines churn out designer fabrics for global brands. This hybrid model gives India unmatched flexibility.
Why India leads in cotton and natural fibers
India grows nearly 25% of the world’s cotton. That’s more than the United States, Brazil, and Australia combined. The states of Gujarat, Maharashtra, and Telangana are the backbone of this production. Farmers here grow long-staple cotton, which is prized for making fine fabrics. This raw material advantage is why India dominates in cotton yarn, fabric, and garments.
India also leads in natural fiber production. It’s the top producer of jute-known as the "golden fiber"-and one of the biggest silk producers. Kanchipuram silk saris, Mysore silk, and Assam’s muga silk aren’t just cultural icons-they’re export earners. In 2024, India exported over $42 billion worth of textiles and garments. That’s more than the entire textile output of Bangladesh and Vietnam combined.
China still leads, but India is closing the gap
China holds the top spot with nearly 50% of global textile output. But its dominance is slowing. Rising labor costs, environmental crackdowns, and supply chain shifts have made Chinese factories less competitive for lower-margin products. India, on the other hand, has a young workforce, lower wage levels, and government incentives like the Production Linked Incentive (PLI) scheme.
Between 2020 and 2025, India’s textile exports grew by 38%. In contrast, China’s growth flatlined. India’s share of global textile exports jumped from 5.8% in 2020 to 7.2% in 2024. That’s not just growth-it’s momentum. Experts predict India could overtake China in certain segments-like home textiles and cotton garments-by 2030.
The hidden engines: MSMEs and handlooms
Most people think of textile factories as big, noisy buildings. In India, that’s only half the picture. Over 90% of textile units are small and medium enterprises (MSMEs). There are more than 1.5 million such units, employing over 45 million people. That’s more than the entire population of Sweden.
Then there are handlooms. India has over 4 million handloom weavers. They produce everything from Banarasi brocade to Chanderi silk. These aren’t relics-they’re niche products that sell for premium prices in Europe and Japan. A single handwoven Banarasi sari can cost over $1,000. That’s not mass production-it’s craftsmanship with global demand.
Exports: Where India’s textiles go
India sends textiles to over 180 countries. The top five importers are:
- United States ($10.1 billion in 2024)
- United Arab Emirates ($5.8 billion)
- United Kingdom ($4.3 billion)
- Germany ($3.9 billion)
- Bangladesh ($3.1 billion)
What’s surprising is Bangladesh. Yes, Bangladesh imports textiles from India-mostly yarn and fabric-because it lacks enough raw cotton and spinning capacity. India supplies the base, and Bangladesh turns it into ready-made garments. It’s a supply chain, not a competition.
Challenges holding India back
Despite the numbers, India’s textile sector still faces hurdles. Power supply is unreliable in many regions. Water scarcity affects dyeing units. The logistics cost to move goods from Gujarat to the port is 40% higher than in China. And while India has skilled weavers, it lacks enough trained technicians to run modern machinery.
Another issue: branding. Indian textiles are known for quality, but not for labels. Most Indian fabrics are sold as private labels under American or European brands. Very few Indian textile companies have built global consumer brands. That’s changing slowly. Companies like Arvind Limited and Welspun India are starting to put their names on products.
What’s next for India’s textile industry?
The government’s PLI scheme is offering $2.6 billion in incentives to boost high-value textile manufacturing. That’s targeted at technical textiles-like medical fabrics, geotextiles, and bulletproof fibers. These aren’t clothes. They’re high-tech materials used in aerospace, defense, and healthcare.
India is also investing in sustainable production. Waterless dyeing, solar-powered looms, and recycled polyester are gaining traction. Brands like Fabindia and Arvind’s BlueDye are already using these technologies. If India can scale these innovations, it won’t just be the second-largest producer-it could become the most sustainable one.
India’s textile rank isn’t just about numbers. It’s about resilience. It’s about a country that turned a centuries-old craft into a $120 billion industry-without losing its soul. And in a world that’s shifting fast, that’s not just impressive. It’s powerful.
Is India the largest textile producer in the world?
No, India is the second-largest textile producer in the world, after China. China produces nearly half of the world’s textiles, while India accounts for about 12%. However, India leads in cotton yarn production and natural fiber output, and it’s growing faster than China in exports.
How much does India export in textiles?
In 2024, India exported $42.3 billion worth of textiles and garments. The United States is the largest buyer, followed by the UAE, UK, Germany, and Bangladesh. These exports include fabrics, yarn, home textiles, and ready-made garments.
Which Indian state produces the most textiles?
Gujarat is the top textile-producing state in India, followed by Tamil Nadu and Maharashtra. Gujarat leads in synthetic fiber production and power loom output, especially in Surat and Ahmedabad. Tamil Nadu dominates in cotton weaving and denim manufacturing, while Maharashtra is strong in silk and home textiles.
Does India produce synthetic textiles too?
Yes. While India is best known for cotton and natural fibers, it’s also a major producer of synthetic textiles like polyester, nylon, and acrylic. Gujarat and Tamil Nadu have large synthetic fiber plants. India now produces over 10 million tons of synthetic fibers annually, and this segment is growing faster than cotton due to demand from fast fashion and technical textiles.
Why is India’s textile industry so important for employment?
India’s textile industry employs over 45 million people-more than any other manufacturing sector in the country. It includes farmers who grow cotton, weavers in villages, factory workers, designers, and export traders. Unlike factories in other countries, India’s textile sector relies heavily on small businesses and home-based labor, making it a critical source of livelihood for rural and semi-urban populations.
Are Indian textiles environmentally friendly?
Traditionally, yes-many Indian textiles are made from natural fibers and handcrafted with low energy use. But modern dyeing and chemical processing have caused pollution. Now, companies are shifting to waterless dyeing, organic cotton, and solar-powered looms. The government is pushing for green manufacturing through subsidies, and brands are responding with eco-certified lines.