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India has long been an important player in the global textile industry, and a new trade deal between the United States and India aims to make the market more accessible to U.S. textile companies. Announced in February, the deal reduces tariffs, simplifies market access and strengthens economic cooperation.
“Over the past several years, both governments have had to navigate tariffs, global inflation, supply chain disruptions and shifting geopolitical realities. At the same time, businesses on both sides continued pushing for stronger cooperation because the opportunity was simply too large to ignore,” says Sidharth Agarwal, director of Creative Group, a Mumbai, India-based vertically integrated apparel, home textiles, outdoor products and yarn manufacturer. “I believe this agreement is not the end goal. It’s the foundation for a much deeper trade relationship in the years ahead.”
(Editor’s note: This article was written prior to the tariffs imposed by the U.S. in July on 60 countries, including India, related to investigations under Section 301 of the Trade Act of 1974. Due to the changing nature of tariffs and other economic policies worldwide, please refer to SpecialtyFabricsReview.com for the most up-to-date information.)
Creative Group is a 52-year-old business run by Agarwal and his family, which operates more than 20 manufacturing facilities and employs more than 16,000 people. Since the COVID-19 pandemic, the company has seen tremendous growth in U.S. retail partnerships.
“India offers something very few countries can offer today: scale, diversification and supply chain depth. We’re the world’s largest producer of jute and among the largest producers of cotton, silk and man-made fibers. But beyond raw material availability, our real strength lies in our ecosystem,” Agarwal says. “At Creative Group, this is something we benefit from every day because India has an end-to-end textile ecosystem, from raw fiber to spinning, weaving, processing and finished products. That level of vertical integration reduces dependency on multiple countries and lowers sourcing risk for global retailers.”
High-growth hot spots
With specialized manufacturing hubs across the country, including Surat for synthetics, Tiruppur for knitwear and Ludhiana for woolens, India’s textile sector has built a strong industrial base that is now expanding into higher-value segments. Technical textiles and synthetic fibers are expected to be the highest growth areas.
Valued at approximately $28 billion in 2024, growth in the technical textiles market there is being driven by increasing demand across end-use sectors such as infrastructure, healthcare, mobility and defense, according to Invest India, the country’s national investment promotion and facilitation agency dedicated to supporting global companies looking to invest or expand operations there.
This growth is being supported by the National Technical Textiles Mission, an approximately $180 million government initiative focused on boosting R&D, strengthening standards, and expanding domestic and export markets.
Growth in India’s synthetic fiber segment is being supported by the Production Linked Incentive (PLI) program, which offers more than $1 billion in incentives tied to incremental production of select fabrics, apparel and technical textile products.
The program rewards companies based on increased output rather than upfront subsidies to encourage large-scale globally competitive manufacturing, which is relevant for U.S. sportswear and athleisure brands, where synthetic fabric dominates, according to Rhea Sampat, assistant manager, Americas, and Akshita Wadhwa, assistant manager, textiles and apparel at Invest India.
Preparing for partnership
Like any significant business decision, entering a new market requires preparation and the right partnerships. When it comes to partnering with India-based companies, the opportunity goes far beyond conventional buyer-seller sourcing arrangements, Wadhwa and Sampat note.
For example, businesses considering manufacturing in India may benefit from a variety of incentives and resources designed to support growth. In addition to the PLI scheme, the country’s textile sector permits 100% foreign direct investment under the automatic route, eliminating the need for prior government approvals. And the government’s PM Mega Integrated Textile Regions and Apparel Parks Scheme provides integrated infrastructure, shared utilities and logistics networks to help reduce both capital costs and time to market.
Partnerships with existing Indian manufacturers offer another path: Joint ventures, co-manufacturing arrangements and long-term supply agreements allow U.S. companies to leverage India’s manufacturing scale, access to raw materials and established supply chains while contributing their own strengths in areas such as product development, technology, design and branding.
Opportunities also extend beyond production. U.S. companies with proprietary technologies can pursue licensing and technology-transfer agreements, while research collaborations with India’s universities, institutes and industry organizations offer access to technical expertise and cost-effective innovation resources.
Whatever path a business chooses, Invest India offers support in identifying the right manufacturing locations, accessing incentives, building supply chain partnerships and scaling operations efficiently.
At Creative Group, Agarwal continues to see more customers wanting deeper partnerships — not simply buying products but collaborating on innovation, speed to market and long-term growth plans.
He also points out the advantages of India partnerships that often may be overlooked: “India’s strong English-speaking business ecosystem makes collaboration much easier for U.S. companies, particularly in product development, compliance, legal documentation and day-to-day execution,” he says. “Major infrastructure investments, from port modernization to dedicated freight corridors, are improving logistics efficiency. And as a huge point in today’s climate, India has historically maintained stable foreign relations and positioned itself as a reliable long-term trade partner globally.”
For U.S. textile companies exploring opportunities in the Indian textile industry, it’s not a matter of domestic manufacturing versus global partnerships. Instead, it’s about understanding how different capabilities, markets and relationships can complement each other in an increasingly connected industry.
“The global textile industry is going through one of its biggest structural shifts in decades,” Agarwal notes. “Supply chains are being redesigned. Sustainability expectations are rising. Geopolitical realities are changing how companies source products. And India is entering this period from a position of strength. Companies like Creative Group have invested significantly in new manufacturing technologies, sustainability initiatives, wastewater treatment systems and product innovation because we believe the future belongs to manufacturers that combine scale with responsibility.”
Holly Eamon is a business writer and editor based in Minneapolis, Minn.
SIDEBAR: Sustainability matters
Sustainable textiles have incredible potential for growth. As U.S. brands face tightening environmental, social and governance disclosure requirements, India’s certified sustainable supply base offers both credibility and scale, say Akshita Wadhwa and Rhea Sampat from Invest India, the government agency dedicated to supporting global companies looking to invest or expand operations in India.
Wadhwa and Sampat say India’s sustainability strengths span the full textile value chain, from organic cotton production and water-efficient manufacturing to emerging recycling capabilities. The country’s scale of textile waste, combined with expanding infrastructure for collection and processing, is also positioning India as a growing destination for chemical recycling investment.
“The future of textiles will be built around performance and sustainability, and India is well-positioned for both,” says Sidharth “Sid” Agarwal, director of Creative Group in Mumbai, a large-scale manufacturer with several global retailer partnerships.
“Our partners are increasingly asking for recycled polyester, regenerative cotton programs, traceability solutions, hemp, bamboo and next-generation fibers such as lyocell and regenerated cellulose products. Companies that invest early in circular manufacturing and transparency will win long term,” he says.