Why the Textile Industry in India Is Fading: Causes, Facts, and Solutions
Jun 30 2025
When you think of textile manufacturing India, the large-scale production of fabrics, yarn, and garments in India, often for export. Also known as Indian textile industry, it powers one of the country’s biggest employment sectors and supplies clothes to stores from the US to Europe. This isn’t just about big factories—it’s also about thousands of small workshops making custom fabrics, handloom sarees, and export-grade denim with local skills passed down for generations.
India’s garment exporters India, companies that ship finished clothing abroad, often to the US, EU, and UK include giants like Arvind Limited, which sends over $1.8 billion in apparel overseas each year. But behind them are hundreds of smaller players making niche products—organic cotton t-shirts, hand-embroidered linens, or eco-friendly dyes—that global brands now demand. The government’s Production Linked Incentive (PLI) scheme is pushing these small units to upgrade machinery and meet international quality standards, turning local workshops into export-ready units.
The real story isn’t just who’s exporting—it’s what’s being made. India doesn’t just churn out basics. It produces high-value items like technical textiles for hospitals, fire-resistant fabrics for firefighters, and even smart fabrics with embedded sensors. These aren’t just trends—they’re becoming core parts of the supply chain. Meanwhile, textile exports India, the total value of fabric and clothing shipped out of India hit over $40 billion last year, making it the second-largest export after petroleum. And while China still leads in volume, India’s advantage is speed, flexibility, and lower minimum order sizes—perfect for brands that want to test new designs without big risks.
What’s often missed is how much of this is still done by hand. In states like Tamil Nadu, West Bengal, and Gujarat, you’ll find small mills where weavers use traditional looms to make ikat, bandhani, and chanderi. These aren’t museum pieces—they’re profitable businesses selling to premium fashion labels. The rise of direct-to-consumer brands and sustainable fashion has given these artisans a new market. You don’t need a factory to compete—you just need quality, consistency, and a story.
So if you’re wondering why India keeps growing in textiles despite higher wages elsewhere, the answer is simple: it’s not about scale. It’s about control. Small manufacturers can switch designs faster, source local cotton without long delays, and adapt to sudden order changes. Big brands are shifting away from massive offshore factories and toward this agile model—and India’s infrastructure, from ports to power, is catching up fast.
Below, you’ll find real examples of how Indian textile businesses are surviving, growing, and even leading global trends—from family-run units making luxury handloom to startups using AI to predict fabric demand. Whether you’re a buyer, a maker, or just curious about where your clothes come from, these stories show how textile manufacturing India isn’t fading—it’s evolving.
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