India is poised to strengthen its position in the global textiles and apparel industry, supported by policy reforms, favourable trade agreements, tariff advantages and robust domestic demand, according to a report by Emkay Research.
The report noted that India’s share of global apparel trade has remained largely stagnant at 3–4% over the past 15 years despite the country’s longstanding status as a major textile manufacturing hub. However, Emkay Research stated that the industry is now approaching a critical inflection point that could enable it to regain lost market share in international markets.
Several structural factors are expected to drive the sector’s next phase of growth. These include the strengthening of the domestic man-made fibre (MMF) ecosystem through government initiatives such as the Production Linked Incentive (PLI) scheme, the PM MITRA programme and ongoing investments in petrochemical capacity.
The potential benefits of free trade agreements (FTAs) were also highlighted, with key markets, including the European Union, the United Kingdom, Australia and other economies. These agreements are expected to improve the competitiveness of Indian textile and apparel exports by reducing trade barriers and enhancing market access.
Indian exporters currently enjoy a tariff advantage of approximately 7–8% over Chinese competitors in the United States market. Favourable import duties, GST reforms and stronger corporate balance sheets have further improved the sector’s competitive position.
India’s expanding domestic apparel market was identified as another major growth driver. The strength of domestic consumption provides manufacturers with a stable demand base while supporting long-term industry expansion.
India’s textile and apparel sector has demonstrated resilience despite a series of global disruptions, including the COVID-19 pandemic, the Russia–Ukraine conflict and elevated US tariffs. Emkay Research stated that a robust domestic market, a favourable US dollar-Indian rupee exchange rate and stronger balance sheets have positioned domestic companies to withstand future external shocks.
Technical textiles were identified as a major long-term growth segment. Demand for technical textile products is increasing across industries including packaging, defence, automotive and industrial manufacturing.
The domestic technical textiles market recorded a compound annual growth rate (CAGR) of 7%–8% during FY ’20–FY ’26. Emkay Research expects growth to accelerate to double-digit levels over the next five years, driven by FTAs, tariff advantages over China, government support through PLI schemes and PM MITRA parks, and lower GST rates on MMF fibres and yarns.
The findings underscore growing optimism around India’s textile and apparel sector as the country seeks to expand its global footprint and capitalise on shifting sourcing trends in international markets.
Bharat Tex Special Report 2026 
