Textiles – Sector Report – Tailwinds Converging for a Multi-year Upcycle
Published on 21 Sep 2026
India’s textile and apparel (T&A) sector is entering a rare window of structural opportunity. Global brands are diversifying supply chains away from China, while Indian textile industry is benefiting from policy support through PLI and PM MITRA, improving trade access through the UK (GBP20bn apparel market) CETA and potential EU FTA (EUR200bn apparel market), and a resilient domestic demand base. While macro policy and demand tailwinds should support the broader textile sector, value creation is poised to concentrate at the apex of the value chain—ready-made garments (RMG). Yet the opportunity is not automatic: India’s apparel export share remains constrained (~3%) by fragmented garmenting capacity, longer lead times, limited man-made fiber (MMF) depth, higher working-capital intensity, and slower technology adoption versus China, Vietnam and Bangladesh. We initiate coverage on GEXP (BUY, TP: INR953) and KPR (Accumulate, TP: INR1,259).
