Textile

India’s textile sector started FY27 strongly, with Q1 Ebitda rising 34% and revenue 18% year-on-year. Improving global demand, export opportunities, FTAs and government incentives are supporting growth, while Arvind, Welspun and Vardhman emerge as key outperformers.

According to the draft Textiles Committee (Adjudication of Penalties and Appeal) Rules, 2026, reviewed by Mint, the textiles ministry has proposed a formal process under which violations would be dealt with through warnings and monetary penalties instead of the earlier criminal prosecution route.

The renewed focus on productivity comes amid rising dependence on imported cotton and declining domestic output.

The US hit India with 10% tariffs following forced-labour probes. While offering an edge over competitors, textile exclusions and pending capacity reviews pose future risks.

The industry had only recently begun to get some relief from rising input costs. Cotton prices had surged earlier this year on concerns that an El Niño-led impact would reduce domestic production. Prices later eased after the Centre removed the import duty on extra-long staple cotton.