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Home Perspectives Industry

India’s Textile Industry: Policies, Skill Development and Emerging Trends

Team NSN by Team NSN
April 24, 2025
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“The world is adopting the vision of Fashion for Environment and Empowerment, and India can lead the way in this regard.”

— Prime Minister Shri Narendra Modi

From ancient handlooms to cutting-edge technical textiles, India’s textile industry has always been more than just fabric—it’s the warp and weft of our nation’s socio-economic tapestry. As the sixth-largest exporter of textiles globally, contributing 8.21% to India’s total exports and employing over 45 million individuals directly, this sector stands tall as a cornerstone of India’s economic and cultural identity.

The recently held Bharat Tex 2025 shone a global spotlight on India’s bold vision—Farm to Fibre, Fabric, Fashion, and Foreign Markets. With textile exports reaching ₹3 lakh crore and ambitions to triple that to ₹9 lakh crore by 2030, India is poised to redefine its global textile leadership through sustainability, innovation, and scale.

Driving employment generation and equitable development

The textile industry is second only to agriculture in terms of employment generation. With over 100 million people relying on it directly and indirectly, this sector is a lifeline for millions of rural households, especially women. From power loom operators in Maharashtra to weavers in Varanasi and artisans in Kashmir, the textile industry touches every corner of the country.

Importantly, it empowers women like few other industries do—88% of trainees under government skilling programs like Samarth are women. This is not just employment; it’s economic agency, it’s social transformation.

With 70% of the textile workforce located in rural areas and a growing emphasis on home-based work models, the sector plays a crucial role in rural empowerment and decentralised economic growth.

Fostering entrepreneurship in the textile ecosystem

India’s textile sector is a fertile ground for entrepreneurship. The ease of entry, relatively low capital requirements (especially in garmenting and handlooms), and strong domestic demand make it an attractive arena for MSMEs and startups. The rise of sustainable fashion brands, D2C (direct-to-consumer) platforms, and export-led small businesses reflect a vibrant, decentralized entrepreneurial ecosystem.

Schemes like PM-MITRA and liberal state incentives are encouraging more players to venture into textile clusters, incubate new ideas, and scale innovation-driven businesses. This sector doesn’t just generate employment—it creates employers. Innovations in e-commerce, sustainable dyes, and biodegradable fibers are further unlocking green entrepreneurship opportunities, aligning with global ESG goals.

Skills, education, and future-readiness

As the industry evolves with technical textiles, sustainable manufacturing, and smart fabrics, the demand for a future-ready workforce has never been greater. The textile sector needs not only traditional skills like weaving and tailoring but also modern proficiencies in CAD design, machine operation, material science, and quality assurance.

Educational institutions and industry bodies are collaborating to create more specialized curricula, industrial training, and apprenticeship programs. Initiatives like Samarth, ISDS, and support from institutes like SITRA, NIFT and the Textile Sector Skill Council (TSC) are bridging the skill gap across traditional and technical textile segments.

The General Guidelines for Skill Development and Training in Technical Textiles, launched under the National Technical Textiles Mission (NTTM) by the Ministry of Textiles, aim to train 50,000 individuals across two phases. It targets high-growth areas like Meditech, Agrotech, Protech, Indutech, and others, supporting the creation of a robust, transferable, and industry-aligned workforce.

The emphasis today is on holistic skill development—basic training, advanced technologies, managerial abilities, and digital literacy—all aligned with India’s vision of becoming a $300 billion textile industry by 2047. To meet global standards, many programs now also incorporate certifications mapped to international qualification frameworks, enhancing global employability.

India’s Textile Industry

Supportive policy framework

Forward-thinking government initiatives empower the Indian textile sector to spin a remarkable tale of innovation, resilience, and economic growth. Proactive policies fuel the industry to unlock creative potential, showcase strength, and drive global expansion.

1. PM MITRA Parks Scheme – Creating integrated textile ecosystems

Seven mega textile parks are being set up with world-class infrastructure, integrated value chains, and plug-and-play facilities. With an expected investment of USD 10 billion, this scheme promises to boost competitiveness, attract FDI, and generate massive employment.

2. PLI Scheme – Accelerating MMF & Technical Textiles

The Production Linked Incentive Scheme offers INR 10,683 crore in incentives to increase production of MMF apparel, MMF fabrics, and technical textiles—key to diversifying India’s product basket and global market share. This will also help India reduce dependence on cotton and broaden its fiber base, an essential step for climate-resilient and globally competitive textile manufacturing.

3. Samarth – Skilling for the future

Samarth is a demand-driven, placement-oriented scheme aimed at skilling youth in textile-related jobs across the value chain. It supports training, upskilling, and reskilling in sectors including garments, handlooms, handicrafts, jute, silk, and more. So far, over:

  • 3.27 lakh trained
  • 2.6 lakh placed
  • 88.3% women participants—a phenomenal gender inclusion milestone

4. Northern India Textile Mills’ Association (NITMA)

Established in 1958, NITMA supports textile units in North, Central, and Western India. It offers policy advocacy to help businesses grow. NITMA provides market insights to guide strategic decisions. It promotes networking among textile stakeholders. The goal is to build a competitive and future-ready textile industry in India.

5. Liberal state policies

Many states offer generous capital subsidies, wage incentives, power and water concessions, and skilling support, making textile clusters more viable and competitive.

6. Integrated Skill Development Scheme (ISDS)

The Integrated Skill Development Scheme (ISDS) runs on a dynamic, real-time Management Information System (MIS). The Ministry of Textiles introduced a Public Dashboard to share real-time updates on the scheme’s progress. The dashboard shows a state-wise overview and allows users to drill down to district-level training data. Users can also view active training centers and track the number of candidates currently in training.

Also read: India’s Textile Industry: Skills, Education and Emerging Job Roles

7. National Technical Textiles Mission

To make India a global leader in technical textiles, the Ministry of Textiles launched the National Technical Textiles Mission. This initiative drives innovation and growth in the sector. Technical textiles are designed for performance, not looks. They serve functional purposes across industries.

These textiles fall under 12 key categories: Agrotech, Oekotech, Buildtech, Meditech, Geotech, Clothtech, Mobiltech, Hometech, Sportstech, Indutech, Protech, and Packtech. The mission targets a USD 300 billion market by 2047. It focuses on research, innovation, education, and skill development.

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Technical textiles are used in healthcare, defence, agriculture, and more. The mission aims to boost India’s global presence through advanced production and wide industry use.

The road ahead: India as a global textile leader

India’s textile industry blends tradition with technology. It combines grassroots skills with global ambitions. The sector is entering a transformative era. Sustainability and circular fashion are now global priorities. India’s heritage in natural fibers and focus on innovation give it a unique edge.

We see a revival of khadi and a rise in technical fabrics. Youth are being skilled. Women are being empowered. From local looms to global runways, India’s textile industry is crafting more than clothes—it’s shaping a better future.

References:

  • India’s textile industry: Policy directions for and challenges ahead
  • Ministry of Textiles Official Website
  • National Technical Textiles Mission (NTTM) Portal
  • PM-MITRA Parks Scheme – Government of India
  • Textile Sector Skill Council (TSC)
Tags: India textile industry 2025National Technical Textiles MissionPLI scheme for textilesPM MITRA textile parksSkill development in textile industryTextile sector skilling schemes
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