India pushes textile manufacturing beyond Tirupur, Surat to Chhattisgarh, Kerala, Jharkhand

Textiles ministry sets up dedicated unit to support PLI scheme implementation and court investment in new states, aiming to diversify a sector employing 45 million beyond established hubs of Tirupur, Surat, Panipat and Ludhiana.

— Source publishedFri, 26 Jun, 2026, 09:22 IST·First seen Fri, 26 Jun, 2026, 17:12 IST·Source ET Retail

What happened

Ministry of Textiles · India's textiles ministry is engaging Chhattisgarh, Kerala and Jharkhand to expand textile manufacturing beyond Tirupur, Surat, Panipat

Key facts

  • 45 million employed

Why this matters

A dedicated ministry unit courting textile FDI into Chhattisgarh, Kerala and Jharkhand creates a window for JV structuring and land-linked incentive capture before incumbent hubs consolidate the next wave of capacity.

What to watch

  • PLI Phase-2 notification with state-weighted criteria
  • Anchor investor MoU announcements (Trident, Welspun, Arvind, Raymond) in new states
  • State textile policy releases with capex subsidy >25%
  • Skill India textile training center groundbreakings in target districts
  • Bangladesh political/tariff disruptions accelerating relocation urgency
  • Map PLI-eligible firms with announced capex in target states; identify land allotments in Bhilai, Kochi, Ranchi SEZs
  • Track labor cost arbitrage: Chhattisgarh/Jharkhand wages vs Tirupur for sourcing model rebuild
  • Engage state industrial development corps for early-mover incentive stacking
  • Assess MMF and technical textile gap — likely first wave vs cotton-based apparel