India is the second-largest producer of textiles and garments and the fifth-largest exporter in the world. About 80% of the industry serves the domestic market, while 20% is exported which is mainly apparel and most imports are fabrics. India supplies major global brands like H&M, Zara, Gap, Levi’s, Primark, and Marks & Spencer.

Cotton remains dominant with 60% fibre use share. India is the 2nd largest producer of cotton and MMF with polyester dominance. Indian cotton is predominantly used in the domestic industry due to high contamination levels, hence making it less competitive for exports.

All levels of the textile value chain, i.e., from fibre/ filament to garment manufacturing, are present in India, in both natural and synthetic fibres. There are several large integrated players, however, 80% of industry’s capacity is spread across Micro, Small and Medium Enterprises (MSME) clusters.

India is a global leader in mechanical textile recycling, particularly in processing cotton-rich pre-consumer waste. However, the sector faces challenges due to its predominantly informal structure and limited technology, which restrict its scope mainly to domestic markets and home textiles.

Aims to expand India’s textile sector, focusing on technical textiles, sustainability, and global competitiveness. It is for both new and existing textile enterprises—including manufacturers, MSMEs, and labour-intensive units- offering financial incentives, capital subsidies, and skill development.

Aims to reduce textile waste by promoting upcycled products through collaboration between the Textiles Committee, GeM, and SCOPE. It supports underserved sellers, artisans, and public enterprises with market access via GeM. It focuses on long-term circular economy integration.

Aims to boost domestic manufacturing of MMF, technical textiles, and apparel with a budget of US$1.3 billion over five years. The scheme indirectly supports sustainable practices by encouraging modern production facilities and advanced materials. By lowering entry barriers and expanding product scope in PLI 2.0, the scheme creates opportunities for textile innovators to integrate energy-efficient technologies and renewable energy.

ATUFS is a flagship scheme of the Ministry of Textiles, aimed at promoting modernisation and technological upgradation in the Indian textile industry. It provides capital investment subsidy to textile mills for acquiring new and modern machinery.

India’s largest apparel industry-led initiative, launched in 2019 to drive sustainable sourcing, reduce environmental impact, and promote transparency across the textile value chain. It aligns with UN SDGs and aims for widespread adoption of sustainable practices by 2025. In 2025, SU.RE launched a platform featuring 600+ verified sustainable vendors to support ethical and traceable production across India’s fashion sector.

Aims to set up seven large, integrated textile parks across India to strengthen the entire textile value chain in one location. It provides world-class infrastructure, financial incentives (up to ₹800 crore per park), and aims to attract major investment and generate about 20 lakh jobs. The scheme is implemented through a public-private partnership, with parks selected in states offering suitable land and ecosystems.

Provision of subsidies for setting up textile recycling infrastructure. Apart from the national regulations, individual states have also formed state-specific policies to bolster waste management and green transition.