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India's Textile Capex Hits 14-Year High on Trade Boost and Policy Support

India's Textile Capex Hits 14-Year High on Trade Boost and Policy Support

05 February 2026

India’s textile capex hit a 14+ year high in Dec 2025, with new projects worth ₹44,019 crore (US$ 4.87 bn), the strongest level since 2011.

A US tariff cut from 50% to 18% on Indian textiles has boosted export and investor confidence.

The upcoming India–EU FTA will remove a 12% textile tariff, supporting future investments.

The PLI scheme (₹10,683 crore / US$ 1.18 bn) continues to drive capex across large firms and MSMEs.

Companies like Page Industries and Gokaldas Exports are expanding capacity, keeping the outlook positive. 

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