India's Textiles Sector Surges: ₹60,000 Crore Investment Pours In
Overview
India's textiles sector attracted over ₹60,000 crore in investment commitments during 2025. Government initiatives like PM MITRA parks and Production Linked Incentives are driving this surge, with a continued focus on sustainability, recycling, and new-age fibers expected through 2026. Foreign direct investment also plays a key role.
Record Investments Pour into Textiles
India's vibrant textiles sector has secured commitments exceeding ₹60,000 crore in 2025, government officials confirmed. This strong performance fuels optimism for continued investment through the current year. Officials anticipate that 2026 will maintain this momentum, heavily influenced by the PM MITRA scheme and Production Linked Incentives (PLI).
Government Initiatives Drive Growth
The PM MITRA Parks initiative alone has drawn committed investments of over ₹14,000 crore, projecting the creation of 38,426 jobs. An additional ₹10,000 crore in investment interest has been received for these parks. These projects aim to build world-class infrastructure to foster export champions.
The Production-Linked Incentive (PLI) scheme is also gaining traction, with 85 companies applying and signaling potential investments surpassing ₹20,000 crore.
Foreign Capital Flows In
Foreign direct investment has significantly bolstered the sector. Finland-based Infinited Fiber Company signed an MoU for ₹4,000 crore. Singapore's RGE committed ₹4,953 crore for its first Indian project in Tamil Nadu. South Korean giant Hyosung is investing $220 million (₹1,850 crore) in Maharashtra, while Toray Industries (Japan) and MAS Holdings (Sri Lanka) are partnering on a ₹1,215 crore ($135 million) venture in Odisha.
Domestic Leaders Expand
Major domestic players are also driving expansion. Reliance Industries, Grasim, Vardhman, Trident, Welspun, Ganga Acrowool, and SRF have announced substantial investments across fibers, fabrics, and technical textiles. Global textile machinery manufacturers like Yamato, Juki, and ITEMA are actively evaluating India for manufacturing and joint venture opportunities.
Sustainability Takes Center Stage
A significant push towards sustainability is evident. Filatex India plans a ₹300 crore investment in a chemical recycling plant using patented technology for polyester waste, set to operate by 2026. This initiative is touted as India's first chemical recycling effort in textiles, transforming waste into usable yarn.
