Threads of advantage for Indian textile exports

Lower US tariffs, increasing global sourcing, and regionally specialised textile clusters are redefining exports from India and paving the way for the sector’s growth and global competitiveness

Feb 03, 2026, 18:34 IST2 min

1/7

The strength of the Indian textile industry is in its geographic clusters across states, ranging from spinning mills to handwoven silks and export-ready garment factories. With US tariffs on Indian exports reduced to 18 percent from 50 percent, combined with increasing American sourcing and significant trade agreements, these geographic clusters are now clearly gaining a competitive edge over their global counterparts. Photo credits: (Clockwise from top left) Photos by Avishek Das/SOPA /LightRocket via Getty Images; Amit Dave / Reuters; Money Sharma / AFP; Niharika Kulkarni / AFP

2/7

Tamil Nadu | The knitwear and hosiery manufacturing units of Tiruppur, the home textile manufacturing units of Karur, and the spinning mills of Coimbatore contribute significantly to the textile export business from Tamil Nadu. With its strong labour ecosystems, the state continues to be at the forefront of India’s apparel and home textile exports to the US and Europe. Photo by R. Satish Babu / AFP

3/7

Gujarat | The large synthetic textile value chain in Surat and the traditional cotton mills in Ahmedabad make Gujarat a very important fabric supplier to India. The state provides raw materials as well as processed materials to garment manufacturers in India and abroad. It has always been a beneficiary of the changing trends in global sourcing due to its port accessibility and large scale manufacturing, particularly in manmade fibers. Photo by Amit Dave / Reuters

4/7

Maharashtra | The textile export base of Maharashtra is rooted in the apparel exporters of Mumbai and the powerloom segments of Ichalkaranji, Solapur, and Nagpur. Maharashtra is thus an important player in cotton-based garments, denim, and blended fabrics. Although its textile mills have their origins in the early industrialisation period of India, the Maharashtra textile industry now combines its traditional manufacturing base with contemporary export infrastructure. Photo by Manoj Patil/HT via Getty Images

5/7

Uttar Pradesh | Uttar Pradesh is one of the few places where heritage and large-scale manufacturing coexist. The Banarasi silk of Varanasi is still renowned worldwide, and the garment factories of Noida supply bulk orders to global fashion brands. This coexistence in the same value chain has helped UP increase its presence in the textile export map of India. Photo by Niharika Kulkarni / AFP

6/7

Punjab & Haryana | Panipat and Ludhiana combine to provide the export backbone for the woollen and hosiery textile industry in North India. Panipat's blankets, rugs, and home textiles reach homes in Europe and the US, while Ludhiana's woollen knitwear and cold-weather clothing cater to the global demand for such products. With their robust SME support systems and skilled workforce, these clusters are strong players in the Indian export sector. Photo by Money Sharma / AFP

7/7

West Bengal | The textile export tradition in West Bengal has its roots in jute, silk, and handlooms, mainly around Kolkata and Murshidabad. Right from jute bags and mats to high-quality silk fabrics, the state has been meeting the demands of niche markets in the global market, which are driven by sustainability and artisanship. With buyers these days looking for eco-friendly and artisanal products, the textile sector in Bengal has its own importance and is becoming relevant in the global market. Photo by Avishek Das/SOPA /LightRocket via Getty Images