The Indian textile industry, once the backbone of the pre-independence economy, is weaving a new success story in 2026. For years, the sector faced headwinds from global competition and outdated infrastructure. Today, however, a “perfect stitch” of policy support, digital transformation, and shifting global supply chains has positioned it as a goldmine for savvy investors.
From an investor’s view, the revival is not just about fabric; it is about the “China Plus One” strategy and India’s aggressive push into technical textiles.
The Drivers of the Textile Resurgence
The turnaround of the sector is anchored by significant government interventions. The PM MITRA (Mega Integrated Textile Region and Apparel) parks and the Production Linked Incentive (PLI) Scheme have provided the much-needed scale. The PLI 2.0 scheme, extended through March 2026, has specifically lowered entry barriers for MSMEs, encouraging domestic manufacturing of Man-Made Fiber (MMF) and technical textiles.
Furthermore, the recent conclusion of Free Trade Agreements (FTAs) with the UK and negotiations with the EU have opened doors for duty-free access, making Indian exports more competitive than ever.
Top Textile Companies in India: Market Leaders of 2026
Investors looking to capitalize on this boom are increasingly focusing on vertically integrated players. These companies control everything from spinning to retail, ensuring better margins. Here are the top textile companies in India that are currently leading the charge:
| Company Name | Core Specialization | Why It’s a Top Pick |
| Page Industries Ltd. | Premium Innerwear (Jockey) | Dominant market share and strong brand loyalty. |
| KPR Mill Ltd. | Vertically Integrated Apparel | Massive capacity and a strong focus on sustainable exports. |
| Trident Group | Home Textiles & Yarn | Global leader in terry towels with aggressive expansion plans. |
| Welspun Living | Bed & Bath Solutions | Innovator in smart textiles and supplier to global retail giants. |
| Arvind Limited | Denim & Advanced Materials | A pioneer in sustainable denim and technical textiles. |
| Vardhman Textiles | High-quality Yarn & Fabric | Largest yarn manufacturer with deep export penetration. |
Investment Outlook: Technical Textiles and Sustainability
The true “alpha” for investors in 2026 lies in two sub-sectors: Technical Textiles and Sustainable Fashion.
- Technical Textiles: Valued at approximately $45 billion in 2026, these are high-value products used in healthcare (Meditech), infrastructure (Geotech), and defense. Companies specializing in these areas are seeing higher P/E ratios due to their specialized nature.
- ESG Integration: Global buyers now demand “Green Textiles.” The top textile companies in India are investing heavily in water recycling, organic cotton, and solar-powered plants to meet these international standards.
Why Now is the Time to Invest
Despite the 2025 tariff challenges with the US, the domestic market remains a massive anchor. With rising middle-class disposable income, the internal demand for branded apparel is growing at a CAGR of over 10%.
For an investor, the combination of a robust domestic base and an export-friendly policy environment makes the top textile companies in India an essential part of a diversified portfolio. The industry is no longer just about “cloth”; it is about high-tech manufacturing and global brand building.