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Unlocking India’s Textile Industry to US$1 Trillion by 2035: A Vision for the Future

• By  Manmohan Parkash
• March 16, 2025

India’s textile industry is one of the largest and most vibrant in the world. Contributing over US$200 billion to the national economy and providing employment to millions, the sector has long been a cornerstone of India’s industrial landscape. However, the world is changing, and so must India’s textile sector. With the global economy undergoing profound shifts - driven by technological advancements, sustainability demands and changing consumer behaviours - the textile industry stands at a pivotal moment.

To reach US$1 trillion in contribution to India’s economy by 2035, a bold, strategic approach is necessary. The blueprint for this future must blend innovation, sustainability, market expansion, and workforce development. Here’s how India can unlock the full potential of its textile sector and set itself on a path to achieving this audacious goal.

1. Embrace Technological Transformation

To scale up to US$1 trillion, India’s textile industry must harness the power of Industry 4.0 technologies - such as automation, artificial intelligence, big data, and blockchain. These technologies are essential not only for improving productivity and reducing costs but also for enhancing quality and sustainability.

• - Automation and AI-driven manufacturing can drastically reduce labour costs and errors, streamline production timelines, and create customized, on-demand manufacturing models. These efficiencies would allow Indian textile manufacturers to compete with global players while retaining the ability to quickly adapt to market changes.
• - Blockchain technology can ensure transparency and traceability in the textile supply chain. This would appeal to an increasingly discerning global consumer base that values ethical production and sustainability.
• - 3D printing for textiles and smart textiles - incorporating electronics into fabrics - can also open new markets, especially in sectors like healthcare, defence, and sportswear.

By investing in these technologies, India can leapfrog traditional limitations and build a future ready textile industry capable of scaling rapidly.

2. Establish India as the Global Hub for Sustainable Textiles

The future of textiles is sustainable. As the world becomes more environmentally conscious, demand for eco-friendly, ethically produced goods will only increase. India’s textile sector can tap into this by positioning itself as a global leader in sustainable textiles. However, this will require large-scale investment in green technologies, resource-efficient manufacturing, and circular economy practices.

• - Waterless dyeing, sustainable cotton farming, and recycled fibres are just a few areas where India can lead. With its vast agricultural base, India can focus on producing eco-friendly fibres, such as organic cotton, hemp, and bamboo, which have lower environmental footprints compared to conventional materials.
• - Circularity should be at the core of India’s textile industry strategy. Building systems that recycle textile waste into new garments, using recycled polyester, and adopting upcycling models can reduce waste while boosting the economy. The government and private sectors can collaborate on incentivizing businesses that innovate in these areas.

Moreover, India can become the go-to supplier for sustainable fashion by aligning its policies with international standards, securing certifications like Global Organic Textile Standard (GOTS), and adhering to the UN Sustainable Development Goals (SDGs).

3. Foster Innovation and R&D in Textiles

To truly scale, India needs to ramp up investment in research and development (R&D). India’s textile sector must evolve from a traditional manufacturing hub to a global center of textile innovation. The government and private sector should partner with universities, research institutes, and startups to foster innovation in sustainable textile technologies, new materials, and design.

India has a massive potential to develop and manufacture bio-based fibres and fabric innovations, like biodegradable textiles or fabrics made from algae. This requires setting up dedicated innovation hubs and incubators that can incubate startups and small enterprises focused on advanced textile research.

Collaborations with global textile players, academic institutions, and innovation centres will ensure that India remains competitive, leading the charge in the next generation of textiles.

4. Expand Market Access and Diversify Exports

While India already exports textiles globally, the country’s export potential is far from fully realized. To hit US$1 trillion, India must diversify its export markets beyond traditional destinations like the U.S. and Europe. The rapidly growing middle class in emerging economies - such as in Africa, Southeast Asia, and Latin America - presents an untapped opportunity.

To increase market share globally, India should:

• - Forge trade partnerships with countries in Asia, Africa, and the Middle East, where textile demand is growing due to rising disposable incomes.
• - Tap into the fast fashion market with a focus on high-quality, low-cost garments that appeal to younger consumers, while ensuring sustainable production practices are maintained.
• - Increase the presence of Made-in-India textiles at global fashion events, trade shows, and exhibitions, showcasing India’s expertise in design and craftsmanship.

Additionally, India must focus on higher-value segments of the textile market—such as technical textiles, luxury textiles, and smart fabrics - which will command a premium price and drive-up revenues.

5. Improve Infrastructure and Supply Chain Efficiency

Scaling up India’s textile industry to US$1 trillion will require significant improvements in its infrastructure - particularly in logistics, supply chains, and technology adoption. India’s textile producers must be able to quickly and efficiently access raw materials, deliver products to global markets, and keep pace with fast-changing consumer demands.

The Indian government should prioritize investments in transportation infrastructure, logistics hubs, and digital platforms that connect textile manufacturers with global buyers. Streamlining supply chains and ensuring timely deliveries will help India’s textile industry gain a reputation for reliability and speed, which is critical in the competitive global market.

Creating a digital platform to manage supply chains, track inventory, and monitor product quality can also reduce inefficiencies and costs while enhancing transparency.

6. Invest in Workforce Development and Skill Building

A thriving US$1 trillion textile sector must be built on a foundation of skilled labour. India’s workforce needs to be equipped not only with traditional skills but also with advanced technical expertise in areas such as textile machinery operation, 3D printing, data analytics, and sustainable design.

India should invest in vocational training and apprenticeships that provide workers with the skills necessary to thrive in a rapidly changing industry. In collaboration with industry leaders, the government should develop training programs that prepare young workers for the future of textiles. This will ensure that the sector not only grows but evolves with the times.

Moreover, it is essential to ensure that workers are paid fair wages and treated with dignity. As India looks to become a global leader in textiles, it must uphold the highest standards in labour rights and ethical production.

In conclusion, with the right investments in technology, sustainability, R&D, market access, infrastructure, and workforce development, India can transform its textile sector into a US$1 trillion industry by 2035. The country can lead the world in production and set the standard for a sustainable, innovation-driven, and ethically conscious textile industry.

Achieving this goal will require visionary leadership, bold policy reforms, and deep collaboration between the government, industry players, and global partners. India’s textile sector can be a true symbol of economic growth and environmental stewardship - woven together for a brighter, more sustainable future.

(Manmohan Parkash is a former Senior Advisor, Office of the President, and Deputy Director General, South Asia, Asian Development Bank. The views expressed are personal.)

Achieving the goal of a trillion dollar Textile Industry will require visionary leadership, bold policy reforms, and deep collaboration between the government, industry players, and global partners. India’s textile sector can be a true symbol of economic growth and environmental stewardship—woven together for a brighter, more sustainable future.