Why the Textile Industry in India Is Fading: Causes, Facts, and Solutions
Jun 30 2025
When people talk about the fabric capital of India, the region or city most dominant in textile and garment manufacturing. Also known as textile hub of India, it refers to the center of production, export, and innovation in cloth-making across the country. Many assume it’s Mumbai or Delhi, but the real answer lies in Gujarat—specifically in cities like Surat and Ahmedabad, where looms hum 24/7 and over 40% of India’s fabric is woven. This isn’t just about threads and yarn. It’s about jobs, exports, and a supply chain that feeds global brands from H&M to Zara.
At the heart of this industry is Arvind Limited, India’s largest garment exporter, shipping over $1.8 billion in apparel yearly. They don’t just make clothes—they control the entire pipeline: spinning yarn, weaving fabric, dyeing, cutting, and stitching. Their factories use everything from traditional handlooms to automated cutting machines, proving that Indian manufacturing doesn’t have to choose between heritage and efficiency. Nearby, smaller units in Surat churn out millions of meters of synthetic fabric daily, often at half the cost of China. This mix of big players and nimble local makers is what keeps India competitive.
What makes this fabric capital so powerful? It’s not just volume. Indian textiles have a reputation for quality control, fast turnaround, and adaptability. While China focuses on mass production, India excels in customization—whether it’s hand-embroidered saris for luxury markets or bulk-order denim for fast fashion chains. The government’s PLI scheme for textiles, tax breaks for exporters, and investments in technical training have pushed this sector forward. Meanwhile, the rise of sustainable fabrics—organic cotton, recycled polyester, and natural dyes—is turning Indian mills into eco-leaders, not just cost leaders.
Behind every meter of fabric is a story: a weaver in Varanasi, a dye technician in Tirupur, a quality inspector in Ludhiana. These aren’t faceless workers—they’re skilled professionals keeping a 5,000-year-old tradition alive with modern tools. And as global brands look to diversify away from single-source supply chains, India’s fabric capital isn’t just a player—it’s becoming the go-to alternative.
Below, you’ll find real insights into how Indian textile companies operate, who the top exporters are, what’s driving profits in fabric manufacturing, and why small-scale units are thriving alongside giants. Whether you’re a buyer, a business owner, or just curious about where your clothes come from, these posts break it down—no fluff, no jargon, just facts.
Surat is the fabric capital of India, producing over 70% of the country's synthetic textiles. Learn why it dominates the industry with speed, scale, and low cost-beating traditional hubs like Banaras and Bhavani.
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