What Is India's Rank in Global Textile Manufacturing?

India doesn’t just make clothes-it makes the world’s clothes. From handwoven silk in Varanasi to mass-produced cotton T-shirts in Tirupur, India’s textile industry is a quiet giant. But where does it stand today? If you’re asking about India’s rank in textile manufacturing, the answer isn’t just a number-it’s a story of scale, history, and shifting global trade.

India is the second-largest textile producer in the world

As of 2025, India holds the second position in global textile manufacturing, behind only China. That’s not a small feat. India produces over 60 million tons of textile fiber annually, including cotton, wool, silk, and synthetic blends. The country accounts for roughly 6% of global textile production and supplies more than 14% of the world’s textile exports. That means one in every seven garments you buy globally likely came from India.

The numbers don’t lie. According to the Indian Ministry of Textiles, the textile sector contributed $120 billion to India’s economy in 2024. It directly employs over 45 million people-more than the entire population of Australia. And unlike many countries that have outsourced production, India still does almost everything in-house: spinning yarn, weaving fabric, dyeing, printing, cutting, stitching, and exporting.

Why India beats most countries in textile output

China may produce more, but India has unique advantages that keep it ahead of nearly everyone else. First, it’s the world’s largest cotton grower. In 2024, India produced 35 million bales of cotton-more than the U.S., Brazil, and Australia combined. That means raw material is cheap and abundant. No need to import cotton from halfway across the globe.

Second, India has the largest workforce in textiles. Over 90% of textile manufacturing happens in small and medium enterprises, often family-run units with decades of experience. A village in Gujarat might have 200 handlooms operating out of homes. A cluster in Tamil Nadu might have 500 automated knitting machines churning out socks for global brands. These aren’t factory giants-they’re networks of skilled workers who know how to make fabric, not just operate machines.

Third, India’s textile industry is diverse. It doesn’t just make cheap T-shirts. It produces high-end silk saris, technical textiles for hospitals and cars, embroidered bridal wear, and even space-grade fabrics used by ISRO. The country exports everything from $2 cotton socks to $2,000 hand-embroidered Banarasi sarees.

India vs. China: The textile rivalry

China still leads the world in textile production, making about 50% of global output. But the gap is narrowing. In 2015, China made nearly three times more textiles than India. By 2024, that ratio had dropped to just 1.8 times. Why? Rising labor costs in China, trade tensions, and supply chain risks have pushed global brands to look elsewhere.

India’s advantage? Flexibility. While Chinese factories often require large minimum orders-say, 10,000 units-Indian mills can run small batches of 500 or even 100 pieces. That’s perfect for fast-fashion brands testing new designs or niche labels building a customer base. Many European and U.S. startups now source their first collections from India because they can test the market without tying up millions in inventory.

Also, India has no trade tariffs with the U.S. and EU for many textile categories under the Generalized System of Preferences (GSP). China, on the other hand, faces 25% tariffs on many apparel items under Section 301. That makes Indian-made goods cheaper to import into key markets.

Where India’s textile industry is growing fastest

It’s not just about volume-it’s about what’s being made. India’s fastest-growing segment is technical textiles: fabrics for medical masks, bulletproof vests, geotextiles for roads, and even solar panel covers. This sector grew 18% in 2024 alone and is expected to hit $40 billion in value by 2027.

Another big growth area is sustainable textiles. Indian brands like Fabindia and Arvind Limited are leading the charge in organic cotton, recycled polyester, and natural dyes. The government’s “Green Textile Mission” is funding waterless dyeing technologies and solar-powered looms. In 2024, over 200 textile units in Gujarat and Maharashtra switched entirely to renewable energy.

Export markets are shifting too. While the U.S. and EU still take the bulk of India’s textile exports, countries like Vietnam, Bangladesh, and even Ethiopia are now buying Indian fabric to make their own clothes. India is becoming the “fabric supplier to the suppliers.”

Challenges holding India back from #1

Even with all its strengths, India still can’t overtake China. Why? Infrastructure gaps. Power outages still happen in rural textile hubs. Many small mills use outdated looms that are slow and inconsistent. While China has fully automated spinning mills that run 24/7, India’s average machine age is 15 years.

Also, access to finance is tough for small players. A mill owner in Ludhiana might wait six months for a bank loan to upgrade a machine. In China, government-backed loans are approved in days.

And while India has skilled labor, it lacks large-scale training programs. Most workers learn on the job. There’s no national certification system for textile technicians, unlike in Germany or Japan. That makes it harder to scale quality uniformly.

What’s next for India’s textile industry?

India’s goal is clear: become the world’s top textile producer by 2030. The government’s Production Linked Incentive (PLI) scheme is offering $2.6 billion in subsidies to companies that invest in modern machinery, automation, and exports. Over 120 textile firms have already applied.

Big brands are betting on India. H&M, Zara, and Uniqlo have increased sourcing from India by 30% since 2022. Nike now sources 15% of its apparel from Indian suppliers. Even luxury brands like Burberry and Armani are testing Indian-made linen and wool blends.

With its cotton supply, workforce, and growing tech adoption, India is in the best position to challenge China-not by copying it, but by doing things differently. Smaller batches. Faster turnaround. Better sustainability. More human touch.

Final ranking: India at #2, but climbing fast

As of early 2026, India is firmly the second-largest textile manufacturer in the world. But it’s not standing still. With rising global demand for ethical sourcing, flexible production, and natural fibers, India’s advantage is growing. China may still lead in volume, but India is winning in adaptability.

If you’re buying clothes, shoes, or home textiles in 2026, there’s a very good chance they were made in India. And that number will only go up.