Textiles sector has seen commitments and investments of over ₹60,000 crore in 2025, government officials said. Now they hope that the trend continues in the current year.

“2026 is likely to see a continued focus on investments through PM MITRA and PLI (Production Linked Incentives). In addition, a strong emphasis on sustainability and technology-led investments such as those in textile-to-textile recycling, biomass energy and decarbonisation New-Age Fibres and eco-friendly fibres will continue,” an official said.

PM MITRA

According to him, one of the key initiatives, PM MITRA Park projects alone, attracted committed investments of over ₹14,000 crore with a potential of generating 38,426 jobs, while investment interest for an additional ₹10,000 crore was received by the authorities. “These included investments by major players such as Vardhman, Trident, Best Corp and Bhilossa,” he said.

Announcing PM Mitra Park scheme in the FY21 Budget, Finance Minister Nirmala Sitharaman had said: “To enable the textile industry to become globally competitive, attract large investments and boost employment generation, a scheme of Mega Investment Textiles Parks (MITRA) will be launched in addition to the PLI scheme. This will create world class infrastructure with plug and play facilities to enable create global champions in exports.”

Foreign Investments

Talking about Production-Linked Incentive (PLI) scheme, the official said that 85 companies have applied under the revamped scheme, with potential investments of over ₹20,000 crore. On the FDI front there have been number of proposals. Finland-based Infinited Fiber Company signed an MoU with Andhra Pradesh for an investment of ₹4,000 crore. Singapore headquartered RGE (Royal Golden Eagle), a big player in manmade fibres announced a ₹4,953 crore investment for setting up its first project in India at Thoothukudi in Tamil Nadu.  South Korean giant Hyosung is setting up $220 million (₹1,850 crore) Tire Cord facility in Maharashtra.

A joint venture (JV) project has been signed between Toray Industries (Japan) and MAS Holdings (Sri Lanka) in Odisha ($135 million or ₹1,215 crore) EPIC signed a ₹500 cr. JV with the Creative group to to scale up RMG manufacturing. Global Brands Inditex (Zara & Massimo Dutti) too increased stakes in their Indian JVs. At the same time, domestic leaders such as Reliance Industries, Grasim, Vardhman, Trident, Welspun, Ganga Acrowool and SRF continue their expansion and investments and announced major expansions in fibres, fabrics and technical textiles, another official said.

Recycling Technology

She also informed that global textile machinery leaders such as Yamato, Juki, Marzoli, Adler Dunkrop, ITEMA and Andritz continued to explore and evaluate India for manufacturing and JV opportunities. In terms of sustainability, manmade fibre player Filatex India announced ₹300 crore investment in a chemical recycling-based patented technology-led polyester recycling plant that is set to go onstream by 2026. “Touted as India’s first chemical recycling initiative, the plant uses a patented technology to recycle textile waste into chips, which can then be spun into yarn,” she said.