All You Need to Know About the History and Progress of Indian Textile Industries in India 

Industries in India emerged under the influence of the Indian revolution. It would not be wrong to say that it was all possible because of the far-sightedness of a single man, Jamsetji Tata. Referred by many as a ‘one-man planning commission’ laid the foundation for Industries in India. The Father of Indian Industries, Jamsetji Tata, who graduated from Elphinstone College in Mumbai, started his entrepreneurial journey with textile mills in the 1870s.

In the late 1800s, metal industries started to bloom. Along with these industries, India was gaining fame in the agricultural sector. Textile Industries during this period of British rule were dormant. Under British Rule, the swadeshi movement caused a wave of change in the usage and value of Indian hand-made fabric in the mind of the Indian population.

Textile weaving and spinning were not new in India. The history of textiles can be traced to 3500 BC during the Indus Valley civilization. The textile was a significant contributor to the business in the Indian sub-continent in the ancient time also. 

The modern Indian Textile Industries, uphold its name of being one of the largest producers. Cowaszee Nanabhoy Dawar was another visionary whose pioneering efforts laid the foundation for the first cotton mill in India in 1854.

Cotton weaving mills started to pop up in large numbers across India and started to make their presence known globally. Due to the handweaving of the yarn for fabric, the cotton fabric produced by the Indian textile Industries was and still is highly commended for its quality and texture.

Silk, Jute wool, and other man-made or synthetic fibres are exported in high numbers. Earlier, these fibres were embellished with insect wings, cowrie shells, and mica; today, they are decorated with embroidery from varied threads and yarns, with motifs, shells, and beads. The attractiveness of fabric drove the exporting of goods in large numbers. 

Indian Textile Industries contributed significantly to the growth of the Indian economy and in generating a staggering amount of employment. India stands first in Jute production in the global market. Cotton is the major fibre sold by India, placing it second globally in the production of fibre. 

Policies and Schemes In the governance of Indian Textile Industries

Ministry of Textile and Industries

Major functions of the Ministry of Textiles and industries are formulation and coordination of policies and administering the export, planning, economic analysis, finance, IT, and transportation of jute, cotton, silk, wool, and other fibre.

According to the Ministry of Textiles, there were about 2500 textile weaving factories and 4,135 textile finishing factories in all of India including the textile industries in Surat, Andhra Pradesh, and West Bengal.

There was a rapid growth of cotton industries in the second half of the 19th century until the year 1900, due to great famine.

Technology Upgradation Fund Scheme:

With reimbursing of 5% interest on loans/ finance for benchmark projects of modernization (TUFS) is a scheme by the government to assist industries.

SITP (Scheme for Integrated Textile Parks)

A program has been launched by the Government to provide world-class textile infrastructure to the industry. It is a scheme for integrating textile parks. By merging the Textile Centre Infrastructure Development Scheme (TCIDS) and the Apparel Parks for Exports Scheme (APE). Based on the scheme PPP (Public-Private Partnership) the project will be executed by a professional agency. Special Purpose Vehicles (SPVs) will be used to implement the Scheme by the Ministry of Textile

National Textile Corporation Ltd. (NTC)

Through its nine subsidiaries spread across India, National Textile Corporation Ltd. (NTC) is the largest Textile Central Public Sector Enterprise under the Ministry of Textiles. It manages 52 Textile Mills. Holding Company headquarters are located in New Delhi. Approximately 22000 people work for the group. The company produced 450 lakh Kgs of yarn and 185 lakh meters of cloth in the year 2004-05, having a capacity of 11 lakh spindles and 1500 looms.

Cotton Corporation of India Ltd. (CCI)

Under the Ministry of Textiles, Cotton Corporation of India Ltd (CCI) is a profit-making PSU engaged in cotton commercial trading. The CCI also conducts Minimum Support Price Operation (MSP) on behalf of the government.

Brief of materials used by Indian Textile Industries


Cotton being one of the highest-produced fabrics by Indian Industries drives the economy smoothly. In the early years, cotton played a key role in the setting up of mills and industries in the states like Rajasthan, Maharashtra, and Gujarat. Other factors that led to the set-up of mills in India were the availability of labor, moist climate, raw material, markets, etc. 

India with the second largest installed capacity of spindles in the world exports yarns to Japan, the US, the UK, France, Russia, Nepal, and other prominent nations.


Currently, India leads the Jute markets by producing raw jute and Jute goods. It is third in the export of Jute after Bangladesh. In 2011, India employed approximately 0.37 million workers in the Jute industries and 4 lakh small and marginal farmers.

Strength and Weakness of Indian Textile Industries

Indian textile industries have come a long way since independence and have strengthened themselves a lot. some of these strengths include:

Abundant raw material:

The raw material is naturally cultivated. Some industries develop good relations with the farmers for the regular supply of raw materials from agricultural fields. Also, the climatic condition and the availability of land add to the raw material presence.

Low-cost skilled Labour:

with the second largest population in the world, India has high availability of working population. 

Presence in the value chain

Since the early years, India has presence in the textile market, in terms of quality and quantity.

Growing domestic market

With the population growth, there is an ever-growing need for markets to make products available.

Weaknesses are not losses but domains for growth. Some of the domains for improvement are as follows:

Fragmented Industries

With the growing need for progress, there is a need for connectivity in the chain of production for smooth functioning. 

Historic Government policies

Government policies play a major role in the administration and facilitation of a perfect economic cycle. Historical government policies which are obsolete should not hinder the modern markets and industries.

Technological obsolescence

Technology plays an important role in innovation and improvement. Technologies need to be updated to stay market and fulfil the needs of consumers

Indian Textile Industries contributes approximately 18% in employment and 4-7% in GDP. These industries and markets employ workers, small and big retail and wholesale textile owners. 

Some famous markets such as Indian Textile markets in Surat, Andhra Pradesh, Gujarat, Rajasthan are prominent producers. In order to maintain the presence in value chain, many wholesale markets and wholesalers like Indian Textile House strengthen their online presence for the customers. 

By adopting these online sales strategies, it is easy to reach to customers and expand the markets further for the textile industry.