Top 17 Profitable Textile Business Ideas In India

Top 17 Profitable Textile Business Ideas In India

Are you planning to start a textile business but want to know your options for it? read along to know all about the textile business ideas in India and how Lio can smoothen the management process for you.

The textile industry in India is one of the country’s oldest, stretching back several centuries. Even now, with around 13% of overall exports, the textile sector remains one of the most important contributors to India’s exports.

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Textiles are also a labor-intensive sector and one of the top employers. The textile industry is divided into two categories.

First, there is the unorganized sector, which includes handloom, handicrafts, and sericulture, all of which are small-scale and use traditional tools and methods. The organized industry, which includes the spinning, clothing, and garments segments, employs modern technology and practices such as economies of scale.

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In terms of direct and indirect employment generation and net foreign exchange profits, the textile sector has made a significant contribution to the national economy. The industry accounts for around 14% of industrial production, 4% of GDP, and 27% of the country’s foreign exchange outflows. Over 45 million people are directly employed as a result of it.

After agriculture, the textile industry is the second largest employer. As a result, the expansion and overall development of this business have a direct impact on the betterment of India’s economy. The textile sector directly employs 45 million people and indirectly employs another 20 million.

Key facts related to the Indian Textile Industry

  • The textile sector in India cover’s everything from garments to fiber and is the second-largest employment-generating industry. 
  • India’s textile industry provides employment to millions of people in India. Other than this they also provide and promote traditional skills, heritage, and a carrier of heritage. 
  • The textile business in India is one of the oldest industries in the Indian economy. 
  • With approximately 11 percent of total exports, the textile sector is one of the largest contributors to India’s export. 
  • There are two broad segments in the Indian textile industry- The organized and Unorganised sectors. The organized sector has the apparel, spinning, and garments segment which uses modern techniques and machinery like economies of scale.
  • The unorganized sector consists of handicrafts, handloom, and sericulture, which are done on a small scale and through traditional methods and tools.
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Benefits of Having a Textile Home Business in India

  • It is a full-time opportunity to grow the business along with enjoying consistency in revenue generation in the textile business.
  • The smallest textile business in India expands globally as a brand at a faster pace.
  • The smallest expenditure generates higher and more profitable business returns.
  • It is simpler to build up a reputable customer base
  • It is easier to remain active on social media platforms, especially for small textile business owners.
  • This is a never-ending business.
  • making a connection with suppliers and wholesalers is also easier.

Process To Start A Textile Business In India

To start a textile business in India, the following steps should be followed:

  1. Identify the market gap: Research and identify the gap in the market for a specific type of textile product.
  2. Plan the business: Prepare a detailed business plan including target market, competition, capital requirement, and marketing strategies.
  3. Register the business: Register the business as a sole proprietorship, partnership, limited liability partnership, or private limited company as per your preference.
  4. Obtain licenses and permits: Obtain licenses such as Udyog Aadhaar, GST registration, FSSAI, and others as required by the textile industry.
  5. Secure funding: Raise capital either through personal savings, loans, or investors.
  6. Establish the supply chain: Establish relationships with raw material suppliers, manufacturers, and distributors.
  7. Choose the location: Choose a suitable location for the business, taking into account factors such as accessibility, cost, and proximity to suppliers.
  8. Set up the production unit: Set up the production unit with the necessary machinery, equipment, and workforce.
  9. Market the business: Develop a marketing strategy to reach out to the target audience and promote the products.
  10. Continuously evaluate and improve: Continuously evaluate the business performance and make improvements to stay competitive in the market.

It is important to note that these steps may vary depending on the specific type of textile business and the local regulations in India.

Some Profitable Small and Medium Scale Textile Business Ideas in India

Let us look at some popular textile business ideas in India that you can try.

Sewing Thread Reels

Sewing thread is a typical household item that is used to put things together. Sewing thread balls and reels are in high demand both in India and abroad.

Furthermore, the production process is quite straightforward. Cotton reels and balls are in high demand on the market. Silk, viscose rayon, and polyester cotton reels and balls are also available, however, these are only in demand during certain seasons.

Sewing thread reels Textile Business idea in India

Surgical Cotton

Because of its great fluid absorbency, it is mostly utilized in hospitals, nursing homes, dispensaries, and at home (for first aid), among other places. It is more commonly referred to as absorbent cotton by the general public.

Absorbent cotton, often known as surgical cotton, is utilized at all levels, from medical to corporate to personal. It’s not just utilized as a dressing material; it’s also used as padding for garments, comforters, and other products.

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Surgical cotton is in high demand in hospitals, clinics, nursing homes, and other healthcare facilities. Even small towns are contributing to the expansion of the absorbent cotton business by increasing government health amenities and opening new hospitals and healthcare centers in the private sector.

Surgical cotton is most commonly used in government hospitals and nursing homes. The surgical cotton business has seen a steady expansion in recent years, thanks to the development of medical facilities and increased awareness of personal cleanliness. It is now keeping up with the improvement in education and the upward economic growth of towns and villages.

The need for surgical cotton is expected to rise in the next years, providing enough opportunity for new entrepreneurs to enter the market.

Surgical Cotton Textile business ideas in India

Jute Twine (Jute Rope) & Raw Jute Gunny Bag

Hessian, sacking cloths, bags, ropes, cords, handicrafts, and various textiles are made mostly from jute fiber. India is the world’s largest jute producer. In reality, India and Bangladesh together produce 90 percent of the world’s jute.

Jute bags are mostly used for storing and transporting bulk commodities such as cement, fertilizers, sugar, agricultural products, and other similar items. Jute items are in high demand, and new businesses that open will be successful.

Jute Thread textile business ideas in India

Leather Garments

India produces a significant amount of leather for garments. It’s utilized in footwear, gloves, handbags, and clothing, among other things. Sheep (Lamb) leather is used to make the majority of Indian leather clothing.

The few manufacturers that have emerged in this sector are of very high grade. Bangalore produces around half of the leather garments shipped worldwide, and it has quickly established itself as a major provider of leather garments.

Indian exporters now have a decent understanding of what the western market requires. A handful of existing units have been properly outfitted.

Because of their manufacturing capability in this sector, it is expected that the Indian leather garment industry will have a large part of the global leather garment market in the not-too-distant future.

Leather garments textile business ideas in India

Men’s and Women’s Undergarments

India is one of the members of the BRIC group of countries. India is now ranked second in the world in terms of potential consumption volume.

This country’s large population makes it a viable sales market as well as a substantial human resource reserve for the global economy. Indian clothing has a strong home and export market.

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Jute Garments

Jute garments have been increasingly popular in recent years, with many new and unique designs flooding the market, and their demand is skyrocketing.

Every year, the nation exports roughly 5,00,000 tonnes of jute items. As the need for jute garments grows, new entrepreneurs have many opportunities to enter this area.

India is a significant jute-producing country, accounting for more than 40% of global production. Jute fibre is a type of natural fibre. It’s widely used in jute mills to make a wide range of goods, including jute bags, jute carpets, jute blankets, jute fiber foundation woolen blankets, and so on.

It is in high demand both in our domestic market and in international markets. Out of overall commerce, the Indian textile sector caters mostly to the vast domestic market.

Jute Textile Textile Business Ideas in India

Acrylic Blanket for Warming Human Coverage Purpose

The acrylic blanket is a type of synthetic blanket produced from acrylic fabric. It’s a strong, stable fiber with a lot of elongation. It can be kept for a very long period. Good machinery is accessible in India and may also be purchased in Europe.

Acrylic fiber may be found in India. Blankets, both synthetic and non-synthetic, have a sizable market. Acrylic fiber-based goods have a ten percent annual growth rate.

Acrylic Blanket Textile Business Ideas in India

Shirts, Jeans, and Cotton Casuals

Jeans and cotton are regularly worn by people of all socioeconomic backgrounds. Cotton and jeans are used to make casuals and shirts nowadays.

Cotton and jeans-based items are becoming more popular across the world than synthetic fiber-based ones. Because raw materials are readily available in the United States, this product has a large local and international market. This is a field where a newcomer may thrive.

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Denim Garment Market

Denim clothes, often known as jeans casuals, are quite popular among men, women, children, and the elderly.

Denim clothes cover many items, including jeans, trousers, shirts, jackets, ladies’ skirts, and several forms of children’s casuals. Denim purses of various styles are also highly popular.

Denim Garment Textile Business Ideas in India

Designer Saree Making

In India, designer sarees are the most popular. Designer sarees are also a well-known and successful cottage business in India.

You can sell your designer sarees from your own online store or art fairs in addition to supplying boutique owners or merchants.

Designer Saree Making Textile Business Ideas in India

Embroidery Unit

The financial potential of a computerized or digital embroidery enterprise is enormous. This business may be started by anyone with a little amount of initial cash. Embroidery services are required for everything from standard design to promotional clothes.

Embroidery Unit Textile Business Ideas in India

Knitting Garments

The garment knitting company might be as simple as offering a service to large manufacturers or as complex as starting your own clothing line.

You may also supply garment knitting services to well-known companies in this company. You may start your business on a modest scale and then scale it up as your company expands.

Knitting Garments Business Ideas in India

Garment Wholesaling

If you have a lot of money to invest, garment wholesaling may be a lucrative business in the apparel sector.

In this form of business, one needs often to invest funds in large-scale purchases. The major emphasis area of marketing in this firm is establishing the appropriate distribution channel.

Work Together.

Work with your Textile team in real time. create documents together and share the same on Whatsapp, Gmail, etc.

Manufacturing of Leggings

Women’s leggings are one of the most popular bottoms. And it’s becoming increasingly popular. With a minimal start-up capital investment, you may establish a leggings manufacturing firm.

Leggings Manufacturing Textile Business Ideas in India

Textile Retails Store

On a modest scale, any individual can open a retail textile store. For suburbia and small towns, this is one of the most successful business ideas in the clothes sector.

Localize your marketing efforts. The most important component in this business is choosing the correct retail location.

Textile Retail store Textile Business Ideas in India

Textile Screen Printing

The method of adding color to cloth in defined patterns or designs is known as textile screen printing. The color binds with the fiber’s incorrectly printed textiles, making them resistant to washing and abrasion. It refers to the creation of designs of any sort that could not be created using traditional weaving/knitting procedures on textile textiles.

Textile screen printing may be used to increase the attractiveness and marketability of completed textiles, curtains, clothing, ladies’ dress materials, bed sheets, bed coverings, fabric for children’s outfits, and gents’ shirts.

Textile Screen Manufacturing Textile Business Ideas in India

Carpet and Rugs Making

Carpet and rug making is an excellent company to start with a modest investment. Carpets and rugs of all varieties are in high demand all around the world. The devices may be used not only at home but also in the workplace.

Carpets and Rugs Making Textile Business Ideas in India

How Can Lio assist You With your Textile business?

Lio brings all of your records together in one place, allowing you to access them from your phone at any time and from any location. The most obvious benefit of adopting Lio to manage data within a company is that it saves time and money.


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A good master will spend less time correcting mistakes, hunting for information, and cleaning up. It provides directors with a detailed picture of the organization’s structure, duties, and assets, which aids them in making decisions.

Lio may be used by business visionaries to examine a collection of data, such as specialist data, news, and company notes.

Lio aids with identifying current actual aspects and removing the uproar in a business’ information portfolio, which is an essential action motivator in any issue impacting the affiliation.

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Step 2: Create your account using your Phone Number or Email Id.

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Verify the OTP and you are good to go.

Step 3: Select a template in which you want to add your data.

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Add your Data with our Free Cloud Storage.

Step 4: All Done? Share and Collaborate with your contacts.

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How Lio Automation Can Help You Business Process

Business automation is used by not just big businesses but all entrepreneurs and start-ups. It is something that has really helped companies run a smoother process and learn from their mistakes. Companies who have adopted automation have really made a mark and have from 10X faster with the best possible results. 

Lio Automation gives you many amazing features that make your work super simple and effective. There are very many features that will help you and your business in various aspects. From connecting and staying in touch with your customers, to working together as a team, and everything in between, Lio Automation will truly make your business run smoothly and make it reach new heights of success.

If you are using Lio Automation for your business processes consider all your data safe and secure all the time. Not only is the data saved in the cloud, but it also offers a data versioning feature in which you can actually see the many changes the document or file has gone through and who has made those changes. You can save the version of the file as required by you. 

You can create dashboards for each file which would give you clear details of your company’s operations, marketing campaigns, sales, and other analytics. This is one useful feature that would truly make a difference to your business and help your see all the processes clearly so that you can make well-informed decisions.

Lio Automation also makes working in teams very easy with their Task feature. you can not just assign tasks to your team efficiently. You can set the priority of each task along with the due date. Your team will get a notification about the task automatically, even on Whatsapp, they can see their assigned tasks in the app, mark them complete, and you will get a notification on Whatsapp! 

Not just this, Team management and work allocation are made super easy with Lio Automation. You can also work with teams in real time and see all the changes happening.

You can share invoices and receipts with your customers while also sharing the payment links with them to make the whole transaction process smoother and absolutely hassle-free for everyone. 

Since customers are a big part of any business and staying in touch with them is a crucial job, Lio automation gives you the ability to automate Whatsapp communications. Automating WhatsApp communication is another popular trend that businesses can benefit from. With the help of this, you would be able to save a lot of time, boost your customer retention and renewals, save a lot of money, lower operating costs, and much more. 

There are several other amazing Lio automation features that are made so that you and your business can benefit from them. Excited to know more about it? Start with your Lio automation process for your brand and start your journey to success. 


The Indian textiles sector appears to have a bright future, driven by strong local and foreign demand.

With rising consumerism and disposable money, the retail industry has seen considerable expansion in the last decade, with numerous multinational businesses entering the market.

Increased discretionary income has resulted from strong economic development. As an outcome, product demand has increased, resulting in a massive domestic market.

I hope this article helps you in starting the right business of yours in India.

Frequently Asked Questions (FAQs)

How Lucrative is The Textile Industry?

The Indian textile industry provides around 2% of India’s GDP, 10% of manufacturing production, and 14% of the total Index of Industrial Production (IIP).

What Issues Does the Textile Industry Face?

Textiles have a number of challenges, including a scarcity of raw materials.
• A rise in the price of basic materials.
• The need to adhere to strict social and environmental standards.
• Bottlenecks in the infrastructure
• Regional growth that is uneven.
• Inefficiency as a result of physical labor.
• The weaving industry is disorganized.

Is Textile Manufacturing a Profitable Business?

The textile industry is primarily concerned with the design, manufacture, distribution, and marketing of yarn, fabrics, and ready-to-wear clothes.

In the textile sector, there are several business prospects. For new and prospective entrepreneurs, this industry is considered profitable.

What is the Textile Industry’s Profit Margin?

The textile business, according to Rahul Mehta, President of the Clothing Manufacturers Association of India (CMAI), operates on razor-thin margins of 2-3%.

What City is Well-Known For its Textile Industry?

Thousands of people worked in textile mills around the state, and the cotton clothing produced was sold all over the world.

The city’s economy was based on the success of the industry. The city is known as the “Manchester of India.” As a result, Ahmedabad is now known for its cotton textiles.

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  • Hey there, how much investment will I need to start my shirt and jeans retailing business?

    • Hey Vivaan,
      For starting your shirt and jeans retail business, you will require initial investment of 5 to 10 lakh. It will include your inventory, cost of business license, location, and staff salary.

  • This is a very well-researched article. Got to learn a lot about textile businesses.

    • Hello Tarun,
      Thank you for sharing your feedback. Will share more articles like these, keep supporting us.

  • Could you please let me know how much money the carpet-making business will require in investment?

    • Hello Pious,

      The scope of operations and output will have a big impact on how much it will cost to launch a carpet manufacturing company. However, starting a modest carpet manufacturing company will cost between Rs. 10 Lacs and Rs. 25 Lacs. Kindly research well before proceeding.

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