India’s Textile Industry attracts over ₹60,000 crore investment in 2025

• Textile sector crossed ₹60,000 crore in investments in 2025, with strong momentum expected in 2026.

• PM MITRA and PLI schemes remain key drivers, boosting capacity, exports, and jobs.

• PM MITRA Parks alone attracted ₹14,000+ crore and over 38,000 potential jobs.

• Foreign and domestic investments are rising, alongside a strong push for sustainability, recycling, and advanced textile technologies.

India’s textile sector closed 2025 on a strong note, with cumulative commitments and investments crossing ₹60,000 crore, according to government officials. Policymakers now expect this momentum to carry forward into 2026, supported by flagship schemes and a growing emphasis on sustainable and technology-driven growth.

Officials indicated that the coming year will continue to prioritize investments under the PM MITRA (Mega Integrated Textile Region and Apparel) scheme and the Production Linked Incentive (PLI) programme. Alongside scale and capacity expansion, 2026 is expected to witness increased funding for environmentally responsible and innovation-led projects. These include textile-to-textile recycling, adoption of biomass energy, decarbonisation initiatives, development of new-age fibres, and wider use of eco-friendly materials.

PM MITRA Parks Gain Traction

Among the government’s key initiatives, PM MITRA Parks have emerged as a major investment driver. Projects under this scheme alone have secured investment commitments exceeding ₹14,000 crore, with the potential to create more than 38,000 jobs. In addition, authorities have received expressions of interest for further investments of around ₹10,000 crore.

Several leading textile manufacturers have come forward under the scheme, including Vardhman, Trident, Best Corp and Bhilossa. The PM MITRA initiative was first announced in the Union Budget for FY2021 by Finance Minister Nirmala Sitharaman, who outlined its objective of building globally competitive textile hubs. The scheme aims to attract large-scale investments, enhance exports, and generate employment by offering world-class infrastructure and plug-and-play facilities for manufacturers.

PLI and Foreign Capital Strengthen the Ecosystem

The Production Linked Incentive scheme has also seen robust participation. Around 85 companies have submitted applications under the revamped PLI framework, collectively proposing investments of over ₹20,000 crore. This reflects growing confidence in India’s textile manufacturing ecosystem.

Foreign direct investment has added further strength to the sector. Finland-based Infinited Fiber Company signed a memorandum of understanding with the Andhra Pradesh government to invest ₹4,000 crore. Singapore-headquartered Royal Golden Eagle (RGE), a major player in man-made fibres, announced an investment of ₹4,953 crore for its first Indian facility in Thoothukudi, Tamil Nadu. South Korea’s Hyosung is setting up a $220 million (approximately ₹1,850 crore) tire cord manufacturing unit in Maharashtra.

Several joint ventures have also been finalised. Japan’s Toray Industries and Sri Lanka’s MAS Holdings are partnering on a $135 million (₹1,215 crore) project in Odisha. EPIC entered into a ₹500 crore joint venture with the Creative Group to expand ready-made garment manufacturing capacity. Global fashion brands such as Inditex, which owns Zara and Massimo Dutti, have increased their stakes in Indian joint ventures, signalling long-term commitment to the market.

At the same time, domestic leaders including Reliance Industries, Grasim, Vardhman, Trident, Welspun, Ganga Acrowool and SRF continue to announce major expansions across fibres, fabrics and technical textiles.

Recycling and Advanced Manufacturing in Focus

Sustainability and advanced manufacturing are emerging as central themes for the next phase of growth. Global textile machinery companies such as Yamato, Juki, Marzoli, Adler Dunker, ITEMA and Andritz are actively exploring India as a potential base for manufacturing and joint ventures.

In the recycling space, Filatex India has announced a ₹300 crore investment in a technology-led polyester recycling plant based on patented chemical recycling processes. Scheduled to become operational by 2026, the facility is being positioned as India’s first chemical recycling initiative in textiles. The plant will convert textile waste into polymer chips, which can then be processed into yarn, marking a significant step toward circularity in the industry.

With sustained policy support, rising foreign interest, and a clear shift toward sustainable technologies, India’s textile sector appears well positioned to build on its investment momentum in 2026 and beyond.