The Textile Industry is a fully integrated manufacturing sector in India, encompassing the entire value chain from raw fibre production to spinning, weaving, processing, and final garment manufacturing. It is a key economic concept and institution, recognized as the second-largest employment generator after agriculture, providing direct employment to over 45 million people and contributing about 2.3% to India's GDP.
The industry's origin is ancient, dating back over 5,000 years to the Indus Valley Civilisation. The modern, large-scale industrial era began in 1854 with the establishment of the Bombay Spinning and Weaving Company in Mumbai by Cowasjee Nanabhoy Davarthe. Historically, it solved the problem of clothing and was a major component of the pre-colonial economy, with the Mughal Empire's textile manufacturing being a large part of international trade.
The industry's mechanism is driven by government support through schemes like the Production Linked Incentive (PLI) Scheme for Textiles, which has a budget of ₹10,683 crore and incentivizes large-scale production of man-made fibre (MMF) fabrics and technical textiles based on incremental sales. Another key mechanism is the PM MITRA Parks (Mega Integrated Textile Region and Apparel Parks) scheme, with an outlay of ₹4,445 crore for 2021-22 to 2027-28, which aims to create seven integrated textile parks with world-class infrastructure to reduce logistical costs.
The industry connects to the Ministry of Textiles and the Ministry of Agriculture and Farmers Welfare. Related concepts include the 5F vision (Farm to Fibre to Factory to Fashion to Foreign) and schemes like the Technology Upgradation Fund Scheme (TUFS), launched in 1999, and the Samarth Scheme for skill development.
Recently, the government approved the Mission for Cotton Productivity for 2026–27 to 2030–31 with a budget of ₹56.59 billion to boost cotton yields and quality. Furthermore, policy reforms have included the removal of mandatory BIS certification (Quality Control Orders or QCOs) on raw materials like Viscose Staple Fibre (VSF) to enhance raw material competitiveness, which was a significant change from earlier restrictions.