Tamil Nadu recorded textile exports worth USD 7,997.17 million in FY 2024–25, according to government data. The state contributed 21.84% to India’s total textile exports of USD 36.61 billion, placing it ahead of Gujarat and Maharashtra.
The state’s export performance reflects a 29% increase over the past four years, rising from USD 6.19 billion in 2020–21. The growth corresponds with ongoing industrial activity and policy measures supporting the textile sector.
Tamil Nadu’s textile industry operates through an integrated ecosystem comprising spinning, weaving, dyeing, and garment manufacturing units. Production clusters, including Tiruppur, which is recognised as a knitwear hub, contribute to export volumes through scale, cost efficiencies, and production timelines. This structure supports the state’s position as a sourcing base for international buyers.
Policy measures have contributed to sectoral expansion. These include capital subsidies for machinery upgrades, textile-focused policies, and initiatives supporting industrial clusters. The sector also provides employment across multiple segments of the value chain.
Global supply chain adjustments, including the “China Plus One” strategy, have influenced sourcing patterns, with Tamil Nadu seeing increased engagement from international buyers. Export opportunities in markets such as Europe, the UAE, and Asia, along with prospective trade agreements, are factors influencing export activity.
The industry continues to face competition from countries such as Bangladesh and Vietnam, particularly in terms of cost structures and trade access. Additional challenges include rising input and logistics costs and periodic supply disruptions.
Future growth in the sector is linked to movement toward higher-value segments, including technical textiles and man-made fibres, along with infrastructure development and measures to improve competitiveness in global markets.