Textiles & apparel industry in India — hubs, licences, schemes, merits and demerits

§1How big it is

Industry contributes ~2% of GDP, ~11% of manufacturing GVA and 8.63% of exports; estimated size USD 179 billion
PIB backgrounder: Union Budget 2026-27 - Strengthening India's Textile Value Chain (4 Feb 2026)
Textile & apparel exports (incl. handicrafts) were USD 37.75 billion in FY25, up from USD 35.87 billion
PIB backgrounder: Union Budget 2026-27 - Strengthening India's Textile Value Chain (4 Feb 2026)
Second-largest employer after agriculture; over 45 million people employed directly; nearly 80% of capacity is in MSME clusters
PIB backgrounder (Ministry of Commerce): Threads of Progress - Make in India and textiles (Apr 2025)
India is the 6th largest global exporter of textiles and apparel with ~4% share of world exports
PIB backgrounder: Union Budget 2026-27 - Strengthening India's Textile Value Chain (4 Feb 2026)

Tirupur, Tamil Nadu - hosiery (Town of Export Excellence)
Ludhiana, Punjab - woollen knitwear (TEE)
Panipat, Haryana - woollen blankets, carpets, bed linen (TEE)
Bhilwara (Rajasthan), Bhiwandi and Kolhapur (Maharashtra), Ahmedabad (Gujarat) - textiles (TEE)
Gurgaon (Haryana) and Noida (UP) - apparel (TEE)
Surat, Gujarat - man-made fibre textiles (well-known; not on TEE list for textiles)
7 PM MITRA parks being set up by 7 state governments

BIS certification where QCO applies (several man-made fibre and technical textile QCOs notified by Ministry of Textiles - check current list on BIS)
Consent from SPCB - dyeing, bleaching and processing units usually need Red/Orange consent and ZLD conditions in many states; stitching-only garment units are typically low category
Factory licence and labour registrations (EPF, ESI) - garment units are labour-heavy
RCMC from AEPC (apparel) or TEXPROCIL/SRTEPC etc. for export benefits
Udyam Registration (MSME) - free, online, PAN + Aadhaar based
GST registration (mandatory above turnover threshold or for inter-state supply / e-commerce sale)
Shops & Establishment registration or Factory Licence (Factories Act / state rules) depending on size and power use
Consent to Establish and Consent to Operate from the State Pollution Control Board - category (Red/Orange/Green/White) as per CPCB 2025 harmonised list; White category is exempt from consent
IEC (Importer Exporter Code) from DGFT if you import or export

PM MITRA - Mega Integrated Textile Region and Apparel parks (Rs 4,445 crore, 7 parks)
PLI Scheme for Textiles (MMF apparel, MMF fabrics, technical textiles; operational up to FY 2029-30)
National Technical Textiles Mission
Samarth - Scheme for Capacity Building in Textile Sector (skilling)
Amended Technology Upgradation Fund Scheme (ATUFS) - committed liabilities
Textile Cluster Development Scheme (TCDS)
RoSCTL (Rebate of State and Central Taxes and Levies) for apparel and made-ups exports
Raw Material Supply Scheme (for handloom weavers)
Budget 2026-27: Textile Expansion and Employment Scheme (cluster modernisation) - details awaited
Cross-sector schemes that also apply (detailed in the programmes file): Udyam benefits, PMEGP, PM Mudra Yojana, CGTMSE credit guarantee, Stand-Up India, MSE-CDP (cluster development), RAMP, MSME ZED and Lean certification, MSME Champions, TReDS, Startup India (SISFS seed fund, Fund of Funds, CGSS), RoDTEP, EPCG, Advance Authorisation, Districts as Export Hubs, ODOP (One District One Product)

Very large, cluster-based industry - 80% capacity in MSME clusters, so suppliers and skilled labour are nearby [PIB Apr 2025]
Strong scheme support from PM MITRA, PLI and export rebates (RoSCTL)
Exports growing - USD 35.87 bn to 37.75 bn in FY25 [PIB Feb 2026]

Labour-intensive - labour codes, EPF/ESI compliance and worker retention matter
Dyeing/processing is high-pollution - consent and effluent treatment costs are heavy
Export buyers demand compliance audits and long payment terms
Global competition (Bangladesh, Vietnam) on apparel price