Textile Industry

  • Overview
  • Why Karnataka?
  • Policies & Initiatives
  • Investment Opportunities & Facilitation

Investments in textile sector have grown at CAGR of 32.86% from 2000-2013 in Karnataka State. With the aim of maintaining this momentum the Government of Karnataka has unveiled new textile policy to enable textile entrepreneurs to set up units smoothly in the state. Textile sector contributes five per cent of India's GDP. Textile is the second largest employment generating sector in India. It is the only industry generating huge employment for both skilled and unskilled labour. Indian textile industry has the largest manufacturing capacity globally.

Key drivers for growth in the segment:

Textiles and apparel exports from India are expected to grow at a CAGR of 10% (2013-2023). Apparels and cotton textiles dominate the textile exports from India and are the largest exported products from India. More than 30% exported to USA and China. This segment was the largest contributor to the total textile and apparel exports from India in the financial year 2015. 100 per cent FDI is allowed under the automatic route in the textile sector. Investments are subject to all applicable regulations and laws.


Textile sector occupies a key position in the economy of Karnataka in terms of its contribution to industrial production, employment and exports. Karnataka accounts for 20% of the National Garment production and 8% of the National exports. In Garment Exports, Karnataka occupies the 2nd Position (Nationally) in terms of value of exports. Bengaluru is known as the 'Garment Capital of the country' hosting many large garment companies There are 144 skill development centres and 168 private training centres in the state.

There is abundant raw material available in the state. Karnataka has 35 per cent of India's raw silk production and 11% of India's wool production. Raw silk production was 8,129 tonnes in 2012-14. Sericulture employs ~4,32,000 people in the state. There are 66 cocoon markets and 10 silk exchanges to facilitate the silk trade. The amount of wool produced was 5.30 million kg in 2004-05. The state accounts for six per cent of India's cotton production. Among the top 10 cotton growing states in India, Karnataka grew by 20.90 lakhs bales of cotton in 2013-14.

Track Record:

Karnataka accounts for eight per cent of the national exports. It accounts for 20 per cent of the national garment production valued at USD 1.56 billion. The state has skilled manpower of 55,000 weaver families with handlooms. There are over one million power looms in the state.


The Karnataka Government has taken many initiatives to encourage textile entrepreneurs to set up enterprises in the state. New Textile Policy-Nuthana Javali Neethi 2013-18 has been announced. This policy aims to promote entrepreneurship and attract investments worth Rs. 100 billion. and creating 50,000 jobs. The policy proposes to give Incentive based on zonal classification for development of Green Field Textile Parks, Brown field Textile Parks, Common Effluent Treatment Plan (CETP).

Government proposes to give Reimbursement for Market Development and Branding, Design Development and Product diversification, Standards and compliances specific textile zones in backward areas. Credit linked Capital Subsidy (Investment up to INR 990 million 20% or 15% varying as per the Zonal classification and regional classification will be given. Under Textile infrastructure Development Plan five potential zones have been identified as textile parks located at Doddaballapur, Kalburgi and Tumakuru.


Karnataka has presence across the Value Chain of Textile Industry. There are 24 integrated Textile and Apparel Clusters located across Karnataka. 233 Hectares Textile SEZ Park developed at Hassan and Apparel/Textile Parks developed at Bangalore, Bellary, Davangere, Gulbarga.
Department of Industries & Commerce
#49, Khanija Bhavan, South Wing,
Race Course Road, Bengaluru - 560001