Source: The post “Textiles sector driving growth, jobs” has been created, based on “Textiles sector driving growth, jobs” published in “Business Line” on 20th January 2026.
UPSC Syllabus: GS Paper-3- Economy
Context: India’s textile sector has evolved from a legacy industry into a powerful engine of growth, employment, and inclusive development. It supports domestic demand, generates export earnings, and provides livelihood opportunities to women, rural youth, and first-generation entrepreneurs, reflecting the spirit of Atmanirbhar Bharat.
Key Highlights of the Sector:
- The domestic textile market grew from about ₹8.4 lakh crore to ₹13 lakh crore in five years, driven by rising consumption, with per capita textile expenditure increasing from ₹3,000 in 2014-15 to over ₹6,000 in 2024-25, and projected to reach ₹12,000 by 2030.
- Textile and apparel exports rose from ₹2.49 lakh crore in 2019-20 to nearly ₹3.5 lakh crore in 2024-25, showing a 28 per cent growth in the post-Covid period, underlining India’s global competitiveness.
- The sector is the second largest employer in India after agriculture, directly supporting around 5.6 crore people by 2023-24, with export-led growth creating an estimated 1.5 crore new jobs in the organised sector.
- Employment has been boosted by capacity expansion, facilitated by the import of over 1.8 crore sewing machines since Covid, each supporting approximately 1.7 workers, creating over three crore jobs across the textile value chain.
- The decentralised expansion allows older machines to move into smaller enterprises, tailoring units, and home-based businesses, creating inclusive employment for women, rural youth, and first-generation entrepreneurs.
- Government initiatives such as the District Led Textiles Transformation (DLTT) aim to formalise the workforce, improve skill levels, and provide social security for long-term employment stability.
- New Free Trade Agreements, including the upcoming India-EU FTA, are expected to expand markets, enhance competitiveness, and create additional jobs.
- Industrial initiatives such as PM MITRA Parks and the PLI scheme are projected to generate over 23 lakh direct and indirect jobs, while the wider textile value chain may provide an additional 50 lakh livelihoods by 2030.
- The handloom and handicraft sector supports over 65 lakh artisans and weavers, with exports currently at ₹50,000 crore and a target to double to ₹1 lakh crore by 2032, promoting sustainable and inclusive employment.
Challenges:
- A significant portion of the workforce remains in the unorganised sector, making formalisation, skill development, and social security provision challenging.
- Infrastructure gaps, especially in smaller towns and rural areas, limit the full potential of decentralised and home-based textile enterprises.
- Ensuring equitable employment opportunities for women, rural youth, and first-generation entrepreneurs across regions remains a concern.
- Global competition and changing fashion trends require continuous upgradation of technology, quality standards, and compliance, which can be challenging for smaller players.
- Environmental concerns and the need for sustainable and eco-friendly production are increasingly important to maintain global market competitiveness.
Way Forward:
- The government should continue to support capacity expansion through modern technology, machinery, and industrial parks to enhance production efficiency and employment generation.
- Expanding and leveraging Free Trade Agreements will open new markets, boost exports, and create additional jobs in both organised and unorganised segments.
- Initiatives like DLTT should be strengthened to formalise employment, provide skill development, and ensure social security benefits for workers.
- Special focus should be placed on inclusive growth by targeting women, rural youth, and first-generation entrepreneurs with training, credit, and market support.
- Promoting sustainable textile production aligned with global demand for eco-friendly products will benefit artisans, small enterprises, and the overall sector.
- Encouraging fast fashion and agile manufacturing through policy support, incentives, and infrastructure will ensure India remains competitive in the global textile market.
Conclusion: India’s textile sector is a major driver of economic growth, exports, and inclusive employment. By addressing challenges in formalisation, skill development, technology, and sustainability, the sector can generate over five crore new jobs by 2030, strengthen India’s global competitiveness, and contribute to the vision of Viksit Bharat 2047.
Question: Examine how India’s textile sector is driving growth and employment. What are the challenges it faces and the way forward to enhance inclusive development?
