The Indian textile industry is one of the largest segments of the Indian economy accounting for over one-fifth of the total industrial production. The industry has a diverse network having large scale production units in opposition to numerous small scale independent production houses. The huge population of over a billion people makes India a vast pool of market for the textile industry. The industry is manufacturer driven with spinning having large scale operations and the retailing being the weakest link.

The fabric production industry can be divided into 3 sectors viz. powerloom, handloom and mill sector. The decentralized sector accounts for 95% of the total cloth production. The knitted fabric forms 18% of the total fabric production. Despite the largest loomage in the world, India's share in shuttle-less looms is only 1.35%.

India is the third largest producer of cotton in the world and also has a strong production base for synthetic fibers. The Indian spinning industry is dominated by cotton yarn which also accounts for 80% of total value of yarn exports. With an installed capacity of 37 million spindles, India accounts for about 20% of the world's spindle capacity.

Processing remains the weakest link in India's entire textile chain.

The processing industry is decentralized and is marked by hand processing units, independent units and the composite mill sector.

Indian processing industry has deployed low end technology with little investment initiative in technology upgradation.

The apparel industry is the largest foreign exchange earner accounting for 12% of India's exports. The fashion industry in strengthening its foot and gathering resources to flourish R & D and innovation in the industry.