Union Finance Minister Nirmala Sitharaman has outlined a strategic roadmap for India’s textile industry, aiming to scale textile exports to $100 billion and total production to $250 billion by 2030. Speaking at the TEXPROCIL Export Awards in Mumbai on May 25, 2026, the Minister emphasized the necessity of strengthening the domestic value chain from farm to fashion. As global trade dynamics shift, the government is incentivizing manufacturers to move beyond traditional labour-cost advantages, focusing instead on integrated infrastructure such as the PM MITRA Parks and advanced technical capabilities to remain competitive.
Scaling competitiveness through technology
To achieve these ambitious targets, the industry is being urged to embrace disruptive technologies including artificial intelligence, robotic sewing, and digital printing. With global retailers increasingly mandating traceability and lower carbon footprints, sustainability is no longer optional. The government is reinforcing this transition by launching initiatives like the Advanced Certificate Program in International Trade (ACPIT) to upskill the workforce. Sitharaman noted, while geopolitical fragmentation and carbon border adjustment mechanisms present significant hurdles, they also create opportunities for India to establish itself as a reliable, high-value alternative for global brands seeking to diversify their sourcing away from single-country dependencies.
Navigating global trade volatility
Despite the challenging environment - marked by supply chain disruptions and protectionist trade policies - India’s textile sector showed resilience in FY26, with exports reaching approximately $33.5 billion. Recent trade agreements, including the India-EU FTA concluded in early 2026, are expected to provide the necessary preferential access to bolster value-added segments. Industry players like Gokaldas Exports have already begun to mirror this focus, achieving significant productivity gains and margin expansion through tighter cost management. The overarching mandate for the industry remains clear: position Indian textiles as a premium, sustainable offering rather than a cost-competitive commodity, ensuring long-term integration into global value chains.
The Indian textile sector is a primary pillar of the nation’s economy, contributing roughly 2.3 per cent to GDP and supporting approximately 60 million livelihoods. It encompasses a vast value chain including cotton, man-made fibers, and technical textiles. Current growth is driven by infrastructure investment, export-linked incentives, and a push toward sustainable manufacturing.
