What Is India’s Rank in Global Textile Production?

India doesn’t just make clothes-it shapes the global textile market. If you’ve ever bought a cotton t-shirt, bedsheet, or handwoven scarf, there’s a good chance it came from India. But where does India actually stand in the world of textile production today? The answer isn’t just a number-it’s a story of tradition, scale, and quiet dominance.

India is the second-largest textile producer in the world

As of 2025, India holds the second rank in global textile production, behind only China. That’s not a close second, either. India produces over 60 million metric tons of textile fibers annually, including cotton, silk, wool, and synthetic blends. The country accounts for nearly 6% of the world’s total textile output. That’s more than the entire textile output of the United States, Germany, and Bangladesh combined.

What makes this even more impressive is that India leads the world in cotton production. It grows about 25% of the world’s cotton, mostly in states like Gujarat, Maharashtra, and Telangana. This raw material advantage means Indian mills don’t have to import expensive cotton like many other countries do. It’s a key reason why India can produce textiles at competitive prices without sacrificing quality.

Why India’s textile industry is so big

It’s not just about raw materials. India’s textile industry thrives because of its deep-rooted skills, massive workforce, and diverse manufacturing base. Over 45 million people work directly in textiles-from farmers picking cotton to weavers in rural loom houses to factory workers in Surat and Tiruppur.

Unlike countries that rely on automated factories, India combines high-tech mills with traditional handloom and handicraft production. This mix lets India serve both mass-market retailers and luxury brands. You’ll find the same state-of-the-art spinning machines in Ahmedabad making fabric for H&M, while a weaver in Varanasi spends weeks hand-weaving a single Banarasi silk sari.

The industry also benefits from a long history of textile trade. Indian fabrics like chintz, muslin, and block prints were once the most sought-after goods in Europe and Southeast Asia centuries ago. That legacy didn’t disappear-it evolved.

Exports tell the real story

India doesn’t just make textiles for its own people. It ships them all over the world. In 2024, India exported over $42 billion worth of textiles and apparel. That makes it the sixth-largest textile exporter globally. The top buyers? The United States, the United Arab Emirates, Bangladesh, the UK, and Germany.

What’s surprising is that India doesn’t export many finished garments. Most exports are semi-processed: yarn, fabric, and home textiles like towels and bed linens. That’s changing fast, though. More Indian brands are now making branded apparel for global retailers. Companies like Arvind Limited, Raymond, and Welspun India are building global recognition for their quality control and sustainable practices.

How India compares to China and other major players

China still leads in total textile output, producing nearly 50% of the world’s textiles. But China’s advantage is shrinking. Labor costs have risen, and many factories are moving to countries with cheaper wages-like Bangladesh, Vietnam, and Cambodia.

India is stepping into that gap. Unlike Bangladesh, which mostly produces low-cost basics, India offers a full range-from cheap cotton T-shirts to high-end technical fabrics used in medical gowns and sportswear. Indian mills are also investing heavily in automation and eco-friendly dyeing processes to meet European and U.S. sustainability standards.

Here’s how the top five textile-producing countries stack up in 2025:

India’s edge? It doesn’t need to choose between low cost and high quality. It can do both. A U.S. brand can order 10,000 cotton shirts from a factory in Tiruppur and 500 silk scarves from a cooperative in Rajasthan-all from the same country, with the same quality controls.

The hidden drivers behind India’s growth

Government policies have helped, but the real engine is the private sector. The Indian government launched initiatives like the Technology Upgradation Fund Scheme (TUFS) and the Production Linked Incentive (PLI) scheme for textiles. These programs gave companies money to upgrade machines, reduce waste, and train workers.

But here’s what’s rarely talked about: Indian entrepreneurs are building textile businesses from the ground up. In Ludhiana, a small town in Punjab, over 2,000 knitwear units supply sweaters to global brands. In Erode, a town in Tamil Nadu, nearly every family is involved in towel production. These aren’t corporate giants-they’re family-run factories that’ve survived for decades by focusing on reliability.

Another quiet advantage? India has the world’s largest network of textile testing labs. From fiber strength to colorfastness, Indian labs follow international standards (ISO, AATCC) better than many Western countries. That’s why global brands trust Indian mills to meet their strict quality checks.

What’s next for India’s textile industry?

India’s goal is to hit $100 billion in textile exports by 2030. That’s ambitious, but doable. The country is now investing in smart factories, waterless dyeing tech, and recycled polyester made from plastic bottles. Startups are using AI to predict fashion trends and reduce overproduction.

One of the biggest opportunities? Sustainable textiles. Europe is banning fast fashion imports that don’t meet environmental rules. India’s natural fibers, traditional dyeing methods, and growing circular economy make it perfectly positioned to lead in eco-friendly textiles.

By 2027, India could overtake the United States to become the third-largest textile exporter after China and Bangladesh. And if it keeps improving its supply chain and branding, it might even challenge China’s dominance in mid-range apparel by 2035.

Final takeaway

India’s rank as the world’s second-largest textile producer isn’t luck. It’s the result of centuries of skill, millions of skilled workers, and smart adaptation. Whether you’re buying a $5 cotton shirt or a $500 silk saree, India is behind it. The country doesn’t just make textiles-it defines what textiles can be.