India Charts Bold Textile Growth Path with MSME Exporters at the Forefront

India’s Textile Sector – A Pillar of Heritage and Growth

The Union Minister highlighted that India’s textile sector, valued at USD 179 billion, is not just an economic powerhouse but also a cultural emblem. With exports worth USD 37.75 billion, textiles contribute nearly 2% of India’s GDP and sustain the country’s position as the 6th largest textile exporter globally, commanding a 4.1% share of world trade.

Exports reach over 220 countries, and more than 520 districts in India are engaged in textile activities—an embodiment of the Atmanirbhar Bharat and Swadeshi ethos. The Minister stressed that the 5F vision—Farm to Fibre to Factory to Fashion to Foreign—remains the roadmap for integrating India’s traditional strengths with modern competitiveness.

Resilience Amid Global Uncertainty

Despite challenges such as global volatility and tariff barriers, Indian textiles have shown resilience:

• July 2025 exports surged 5.37% to USD 3.10 billion.

• April–July 2025 exports reached USD 12.18 billion, a 3.87% year-on-year rise.

• Strong segment-wise growth was recorded in readymade garments (+7.87%), carpets (+3.57%), and jute products (+15.78%).

Key export destinations also posted robust numbers in the first quarter: Japan (+17.9%), United Kingdom (+7.39%), UAE (+9.62%), and Australia (+1.74%). These trends signal India’s capacity to expand its share in the USD 590 billion global textile market while diversifying into 40 new global markets.

GST Reforms – Unlocking Competitiveness

A major highlight of the consultation was the discussion on second-generation GST rationalisation announced at the 56th GST Council meeting (3rd September 2025). These reforms, hailed as a “game-changer,” aim to lower costs, reduce distortions, and improve competitiveness.

The Prime Minister, in his Independence Day Address, framed these reforms as part of the Next-Generation Citizen-Centric GST Evolution, embodying the philosophy of “Virasat Bhi, Vikas Bhi”—preserving tradition while promoting growth.

Strengthening the Government–Industry Partnership

MSME exporters welcomed the GST reforms but sought further support in the form of simplified compliance, stronger branding of handlooms, handicrafts, and GI-tagged products, and expanded fiscal incentives.

The Union Minister encouraged exporters to build warehouses in key markets like the EU and the US, while promoting e-commerce channels to directly connect Indian producers with international consumers. Such steps would cut delivery times, enhance global branding, and position India strongly in premium lifestyle markets.

The government also announced targeted measures:

• Import duty exemption on cotton till 31st December 2025.

• Extension of export obligations under Advance Authorisation from 6 to 18 months in Quality Control Order (QCO) cases.

• PLI scheme window extension to encourage fresh investments.

• Establishment of four industry-led committees on diversification, fiscal support, structural reforms, and innovation.

Vision 2030 – Aiming for Global Leadership

The meeting concluded with a reaffirmation of Vision 2030, which sets ambitious goals:

• USD 100 billion in textile exports.

• USD 250 billion domestic market size.

The Minister stressed that these targets will be achieved by leveraging market diversification, innovation, structural reforms, deeper domestic demand, and a reinvigorated Swadeshi movement. Central to this vision are India’s artisans, weavers, MSMEs, and women entrepreneurs who carry forward the sector’s legacy.

With the government and industry moving in alignment, the Minister expressed confidence that India’s textile sector is poised to become a global leader across the value chain—from farms to global fashion stores.