The Indian textile industry, one of the oldest industries, was estimated at more than US $100 billion in January 2020, second largest employer providing employment for 45 million people directly and 60 million people indirectly. Presently this sector is facing severe economic crisis and uncertainty due to the pandemic situation. The textile industry indirectly contributes to 5 % of GDP and 14% to overall Index of Industrial Production. 


  • Uncertain export and domestic market 
  • Retail trade 
  • Disruption or lower operating capacity 
  • Manpower 


  • Shift of major customers like US and EU to alternate production sources other than China 
  • Search for new markets like Japan, South Korea, Canada etc. 
  • Utilize the demand for Hygiene Textiles 
  • Building trust amongst customer by developing inbuilt hygiene products or sanitization of products 
  • Ready for ecommerce sales and digitalization of supply chain 
  • Manufacturing units to maximize the internal capabilities and building efficiencies (shorter lead times and tight margins) 
  • Modernization of machinery to reduce labour intensive process. 

Government Initiative 

Amended Technology Up-gradation Fund Scheme (A-TUFS), estimated to create employment for 35 lakh people and enable investment worth Rs 95,000 crore (US$ 14.17 billion) by 2022. 

National Technical Textiles Mission (2020-21 to 2023-2024), Rs.1480 crore, a mission to view the position of the country as global leader in Technical Textiles. The mission will have four components 

  • Research and Innovation in technical textiles 
  1. fundamental research at fibre level aiming at path breaking technological products in Carbon Fibre, Aramid Fibre, Nylon Fibre, and Composites and 
  1.  application based research in geo-textiles, agro-textiles, medical textiles, mobile textiles and sports textiles and development of biodegradable technical textiles. 
  • Promotion and Market Development 
  1. The penetration level of Indian Technical Textile industry is only 5 to 10% against the level of 30 to 70 % in developed countries. 
  1.  Increase this level to 30 to 40% by 2024  
  • Export Promotion 
  1. Export promotion of technical textiles enhancing from the current annual value Rs.14000 Crore to Rs.20000 Crore by 2021-22  
  1. Ensuring 10% average growth in exports per year upto 2023-24. 
  1. Setting up of an Export Promotion Council for Technical Textiles  
  • Education, Training and skill development 
  1. Identified strategic sectors like agriculture, geotextile. 
  1. Promoting innovations among young engineers resulting in start-ups and ventures 
  1. Biodegradable technical textiles in agriculture, geo textiles and medical textiles 
  1. Development of indigenous machineries and process equipment for technical textiles 

In 2020, New Textiles Policy 2020 is expected to be released by the Ministry of Textiles. 

Textile industry must act swiftly and strategically to restart and restructure itself by making series of tactical changes, strengthening and broadening processing capabilities, quick adoption of digital technology, developing sustainable textiles, technical textiles and apparel production capabilities and help the country to create an external image as a destination of alternate choice for the developed countries.