Start Textile Business in India: Costs, Hubs, and Profitable Opportunities

When you think about starting a textile business, a venture focused on producing, dyeing, or selling fabrics for clothing, home goods, or export. Also known as textile manufacturing, it's one of India's oldest and most resilient industries. Unlike trendy startups that burn out fast, textile businesses thrive on real demand—clothes don’t stop being needed just because the economy shifts. India doesn’t just make fabric; it makes some of the world’s most trusted textiles, from handwoven Banarasi silk to durable Coimbatore denim.

Where you begin matters as much as what you make. Tamil Nadu, India’s top textile-producing state, responsible for 30% of the nation’s output. Also known as the textile hub of India, it’s home to Tirupur’s massive knitwear clusters and Coimbatore’s spinning mills. If you’re making cotton shirts or export-grade bed linens, this is ground zero. But don’t overlook Uttar Pradesh for silk or Gujarat for Bandhani tie-dye—each region has its own specialty, raw material access, and labor pool. You don’t need a factory in Mumbai to compete. Many successful textile entrepreneurs start small: a single loom, a local supplier, and a clear niche like organic cotton or handloom scarves.

What’s the real cost? You won’t need millions. A small-scale setup with 2-3 machines, basic dyeing equipment, and a warehouse can launch for under ₹15 lakh. The bigger hurdle? Finding consistent buyers. Global brands like Zara and H&M source from India because of quality and cost—but getting on their list takes samples, certifications, and patience. The good news? Domestic demand is booming. More Indians are buying locally made kurtas, home textiles, and sustainable fabrics. Government schemes like PM-MITRA offer land and infrastructure support to new textile units. And with Indian textiles ranked among the best in the world for consistency and craftsmanship, you’re not fighting an uphill battle—you’re riding a wave.

Look at the data: India’s textile exports hit $45 billion last year. That’s not just big factories in Chennai—it’s also a woman in Varanasi weaving silk on a handloom, a family in Surat printing fabrics in their garage, and a startup in Coimbatore exporting organic cotton to Europe. The textile business isn’t dead. It’s evolving. And if you know where to look, who to partner with, and what fabric people actually want to wear, you can build something that lasts.

Below, you’ll find real examples of what’s working in India’s textile sector—from the cities that dominate production to the materials that sell best. Whether you’re thinking of launching a small unit or scaling up, these insights will show you where the opportunities are—and where to avoid the traps.