How to Start Textile Business in India? – Detailed Analysis

Textile Business in India
krishna kumar
| Updated: Aug 03, 2022 | Category: Startup

India is among the biggest exporters of textiles and apparel worldwide, making it the most profitable business to invest into. It is the world’s biggest exporter of cotton and jute, along with silk and handwoven fabrics being the second biggest. The industry contributes 12% to the total exports of the country. It has energy across the entire value chain, from fiber, yarn, and fabric to apparel. The industry has a good potential for manufacturers and retailers to enter the textile business. In this article, we will study all about how to Start Textile Business in India.

Opportunities to Start Textile Business in India

  • Taking into consideration the spending energy & grow regional demand for textiles and apparel, there are abundant opportunities to invest in the Indian textile business.
  • From the Indian market to International markets, the textile business in India has shown substantial growth in the last decade.
  • India has an extensive textile and apparel manufacturing structure with infrastructure spread across the country in various clusters.
  •  There is an immense scope of investment chance in retail businesses looking to start textile & fabric businesses.
  • The Government of India has been providing much support under the Make in India[1], beginning to encourage companies to develop, manufacture and assemble products made in India.
  • The objective is to encourage dedicated investments in manufacturing in the country.

Steps for Start Textile Business in India

Following are the steps to Start Textile Business in India are

Step 1: Know the Market: It is always a quality plan to take suggestions from those who already in the business about the market and challenges. Anyhow, before you take the plunge, you must have an idea about the following:

  1. Product Demand: It is essential to understand the nature of demand for the particular type of fabric you are planning to sell. An order may not be the same everywhere, so you should conduct an area-wise survey to determine it.
  2. Competition: If there is another outlet in the same locality selling common products that you want to sell, then try to find what you can do to outplay them.
  3. Pricing: Pricing is an essential factor in any business. Try to value your products as competitively as possible.

Step 2: Research: If you want your textile business to progress successfully, you cannot underplay the significance of good research. You must understand your customers, what they seek and what your competitors do. There are other considerations to make, like the kind of capital you would require to start the textile business, your investing options, steps you need to take to promote your business, the licensing your business needs and much more.

Step 3: Connect with Vendors for Textile Printing and Production: If you plan to begin a new textile business in production or printing, you must look for suppliers who supply the essential raw materials. Latex is a well-liked product used by many companies for textiles to use digital printing.

Step 4: Find the Fabric: You should start contacting manufacturers and vendors to decide the type of fabric you would like to carry. You must maintain caution when purchasing high-quality Fabrics or a wide variety of them. You can also check on some unique fabrics outlets or local artisans specializing in hand-dying or weaving textiles. Such a variety of fabrics will add value to your regular offerings.

Step 5: Manage the Cash Flow: If you have already manage for the capital to start your business, owning a small business credit card would allow you to take care of the recurring charges and make secure online purchases. You might even be entitled to several extra benefits like cash back offers on certain purchases.

Step 6: Location: Whether a shop selling textile products or a factory producing textiles, location is a vital factor that impacts your business’s success and extension. If it is a factory, make secure it is well connected. At the same time, it should have an abundant water supply and electricity. Shops should be located on-premises and mainly frequented by your target buyers.

Step 7: Time Management: Mastering the art of controlling time is significant to the success of any business. If you are continually running short of time and, in the process missing out on essential tasks, it is time you study effective time management.

Step 8: Transportation: An essential consideration in your textile business will be transportation. You need to include the cost of transportation in your budget before starting any business suppliers.

Step 9: Advertise for your business: You must let people know about the new business you are going to start or have started already. Expand the word to as many expected buyers as possible. You can expect an excellent start to your business if more people are already aware of it beforehand. Social media and online marketing are some of the most powerful tools. Signing up for Twitter and creating a new page on Facebook can get you started along these lines.


Hence, decide whether you want to invest in retail or manufacturing depending upon the amount of investment you wish to support. Manufacturing takes more investment than retail as it includes different operational costs that include the cost of manufacturing, labour, etc., research of the market of textiles & fabrics for customer demand, customer paying ability, and market size of various Textiles.

Read our Article:Start Garment Export Business: Concept & Licenses Required

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krishna kumar

Krishna Kumar has completed BA-LLB with a specialization in constitutional Laws from ICFAI University. As a recent graduate, He has both legal research and content writing experience in various law firms. He secures good drafting skills for various legal documents in multiple fields of law.


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