Textile Industry History: How India’s Fabric Legacy Shaped Modern Manufacturing

When we talk about the textile industry history, the centuries-long evolution of fabric production, from handlooms to global supply chains. Also known as fabric manufacturing history, it’s not just about cloth—it’s about labor, policy, and survival. India didn’t just make textiles; it once ruled the world’s cotton trade. Before machines took over, Indian handwoven muslin was finer than silk and sold from Europe to Southeast Asia. By the 1700s, British colonial policies crushed local weavers to feed their own mills, turning India from exporter to importer. That shift didn’t just hurt livelihoods—it rewired the entire economy.

The Indian textile industry, the network of mills, weavers, exporters, and brands that produce fabric and garments in India bounced back after independence, but never fully recovered its old dominance. By the 2000s, it was a $120 billion sector, employing over 45 million people. But then came the collapse. Rising labor costs, outdated machinery, cheap imports from Bangladesh and Vietnam, and weak government support hit hard. Companies like Reliance Textiles, the largest textile company in India, vertically integrated from fiber to retail survived by going big—owning everything from raw cotton to retail stores. Meanwhile, thousands of small weavers vanished. The lesson? Scale and speed won over tradition.

Today, the textile manufacturing, the process of turning fibers into fabric through spinning, weaving, dyeing, and finishing industry in India is split: a few giants with global reach, and a sea of small units struggling to stay alive. The textile collapse, the sharp decline in India’s traditional textile output due to policy, cost, and competition wasn’t an accident—it was predictable. Those who didn’t invest in tech, didn’t train workers, and didn’t adapt to global standards got left behind. But there’s still opportunity. The demand for organic cotton, sustainable dyes, and local craftsmanship is rising. And now, with government incentives and digital tools, a new wave of small manufacturers is trying to rebuild.

What follows is a collection of real stories and hard facts about how India’s textile world changed—why Reliance dominates, why small mills failed, and how policy, profit, and power shaped what you wear today. You’ll find the truth behind the numbers, the people behind the looms, and the choices that still define this industry.