Who is the Largest Textile Industry in India? Top Manufacturers and Market Leaders

India doesn’t just make clothes-it makes the world’s second-largest volume of textiles after China. But when someone asks, who is the largest textile industry in India?, they’re not just asking about size. They want to know who leads in output, exports, employment, and innovation. The answer isn’t one company. It’s a system built over centuries, powered by millions of workers, and anchored by a few giants that dominate the landscape.

India’s Textile Industry: A Global Powerhouse

India’s textile sector is worth over $140 billion as of 2025. It accounts for 11% of the country’s total exports and employs more than 45 million people-more than the entire population of Australia. That’s not just big. It’s foundational. Cotton, silk, wool, jute, and synthetic fibers are all produced in massive volumes across dozens of states. But the real story lies in who controls the flow.

Unlike countries where one or two corporations dominate (like Nike or H&M in the West), India’s textile power comes from a mix of large public-sector units, family-run conglomerates, and cooperative mills. The biggest players don’t always have flashy headquarters. Many operate quietly in the industrial belts of Gujarat, Tamil Nadu, and Maharashtra.

The Top Players in Indian Textile Manufacturing

When you look at production capacity, export volume, and vertical integration, three names rise above the rest: Arvind Limited, Raymond Limited, and Vardhman Textiles.

Arvind Limited is the largest integrated textile manufacturer in India. Founded in 1931, it controls everything from spinning yarn to making denim jeans and exporting them to brands like Levi’s, Zara, and H&M. Its facilities in Ahmedabad and Surat process over 1.2 million meters of fabric daily. Arvind doesn’t just sell fabric-it sells finished garments, and it owns its own retail chain, Blue Jean. In 2024, it reported exports worth $1.8 billion, making it the single largest textile exporter from India.

Raymond Limited built its reputation on suiting fabric. For decades, Raymond was the go-to brand for Indian men’s formal wear. But today, it’s more than a brand-it’s a manufacturing giant. Raymond operates 18 integrated textile units across India. It produces over 400 million meters of fabric annually, including wool, cotton, and blends. It also owns the largest wool processing plant in Asia. While its retail presence is strong, its B2B textile supply to global brands like Hugo Boss and Tommy Hilfiger is where its real scale shows.

Vardhman Textiles is the biggest yarn producer in India and one of the top 10 globally. It doesn’t make finished clothes. It makes the thread that other companies weave into fabric. Vardhman spins over 1.1 million kilograms of yarn every day. Its customers include everything from small local weavers to multinational brands like Uniqlo and Gap. With plants in Punjab, Haryana, and Telangana, Vardhman controls nearly 18% of India’s total yarn production.

Regional Powerhouses: Where the Fabric is Made

Textile manufacturing in India isn’t spread evenly. It’s clustered in regions with deep roots in the craft.

Gujarat leads in synthetic and denim production. Surat alone produces 85% of India’s synthetic fabric. Companies like Arvind, Welspun, and Trident Group operate massive plants here. The state also has the highest number of export-oriented textile units.

Tamil Nadu is the king of cotton spinning and weaving. Coimbatore, Erode, and Tirupur are known as the ‘Manchester of South India.’ Tirupur alone exports over $4 billion in knitwear every year. Over 12,000 small and medium factories in this region supply fast-fashion brands worldwide.

Maharashtra combines tradition with tech. Mumbai and Nagpur are home to large silk and handloom units, while Aurangabad is a hub for technical textiles used in medical and automotive sectors. The state also hosts some of India’s oldest textile mills, many now modernized under private ownership.

And then there’s Uttar Pradesh and Bihar, where handloom clusters produce over 30% of India’s silk and cotton handwoven fabrics. These aren’t industrial giants, but they’re vital. They employ over 6 million weavers, mostly women, and preserve heritage techniques that machine-made fabric can’t replicate.

What Makes a Textile Company the Largest?

Size isn’t just about how much fabric you produce. It’s about control over the whole chain.

The top Indian textile firms aren’t just manufacturers. They’re vertically integrated. That means they own the spinning mills, the dyeing units, the weaving looms, the printing presses, and sometimes even the retail stores. This control cuts costs, ensures quality, and speeds up delivery.

Another key metric is export reach. Companies like Arvind and Welspun ship to over 80 countries. Their ability to meet international standards-like OEKO-TEX for chemical safety or GOTS for organic cotton-gives them access to premium markets in Europe and North America.

Employment matters too. The largest textile players don’t just run factories. They support entire ecosystems. A single large plant in Tirupur might employ 5,000 workers directly and support another 20,000 through logistics, packaging, and local services.

Challenges Facing India’s Textile Giants

Even the biggest players face headwinds. Rising cotton prices, energy costs, and competition from Bangladesh and Vietnam are squeezing margins. Bangladesh now outsells India in ready-made garments because of lower labor costs and better trade deals with the EU and U.S.

India’s textile industry still struggles with outdated infrastructure in many regions. While Arvind and Raymond use AI-driven looms and automated dyeing, thousands of small units still rely on manual processes. This creates a two-tier system: high-tech exporters and low-productivity domestic suppliers.

Water usage and pollution are also major concerns. Dyeing one ton of fabric can use up to 200 tons of water. Many small mills dump untreated wastewater into rivers. The government has started enforcing stricter rules, but compliance is uneven.

And then there’s the digital gap. While global brands demand real-time tracking of supply chains, most Indian textile units still use paper-based systems. Only the top 50 companies have adopted ERP software for inventory and order management.

The Future: Innovation and Sustainability

Despite the challenges, India’s textile industry is evolving. The biggest players are investing in sustainable practices. Arvind now uses laser technology to replace chemical washing in denim, cutting water use by 70%. Welspun has launched a line of recycled polyester made from plastic bottles. Vardhman has started using solar power in its mills.

Technical textiles-used in hospitals, cars, and construction-are the next growth area. India produces less than 10% of its technical textile needs domestically. That’s a $5 billion market waiting to be captured. Companies like Reliance Industries and KPR Mill are already moving into this space.

The government’s Production Linked Incentive (PLI) scheme is also helping. It offers cash rewards of up to 12% on exports for companies that invest in modern machinery. Over 200 textile firms have applied, and the first wave of funding is already flowing in.

Who Really Leads?

So, who is the largest textile industry in India? If you measure by total output and export value, Arvind Limited takes the crown. It’s the only Indian textile company with a global footprint that rivals the likes of Inditex or PVH. But if you count yarn production, Vardhman wins. If you look at brand recognition and domestic sales, Raymond leads.

The truth is, India’s textile strength isn’t in one company. It’s in the ecosystem. Arvind, Vardhman, Raymond, Welspun, and hundreds of mid-sized players form a web that no other country can replicate. Together, they turn raw cotton into clothes worn on every continent.

India’s textile industry isn’t just about making fabric. It’s about preserving craft, creating jobs, and competing on the world stage. And for now, it’s still the most powerful force in the country’s manufacturing sector.

For anyone looking to understand India’s manufacturing might, the textile industry is the best place to start. It’s not just about cloth-it’s about people, history, and global competition all woven together.