Textiles are India's second-strongest economic activity, employing 35 million out of its more than 1 billion population. According to WTO estimates, the elimination of quotas and de-regulations are expected to quadruple India's slice of the market, worth US$400 billion a year to 15%.

To boost market share, Indian manufacturers have invested US$700 million into new mills and equipment in the past two years. 

As the third-largest cotton producer and the second-largest yarn-spinner in the world and a vast and relatively cheap labour force, India is the next best country poised to take on the world.

India exports textile products to over 200 countries across the globe. The readymade garments sector is the biggest sector in India’s textile export basket contributing over 45% of total textile exports. Cotton based items form the majority of export items due to India’s competitive advantage in cotton.

Textile trade, over the last decade has contributed substantially in raising India’s share in total exports. It has been contributing about 22% to India’s overall export trade. India’s textile exports have grown at an average of 11% per annum over the last few years.

The Tenth Five Year Plan of India (2002-2007) projects a GDP growth rate of 8% for which an industrial growth of 10% is projected. The objective of the Tenth Plan is to enable the textile and apparel industry to:

In order to achieve these objectives large investments are required in technology and modernization in critical areas especially in spinning, weaving, knitting, finishing and apparel sectors.