Punjab's textile industry could see opportunities for expansion under the state's Industrial and Business Development Policy 2026, with the government seeking to build on the sector's existing manufacturing and export base. Chief Minister Bhagwant Mann said the state has an integrated textile ecosystem covering cotton cultivation, spinning, yarn production, fabric manufacturing, weaving, processing, garment production and exports.
According to Mann, this ecosystem allows manufacturers to undertake the entire production cycle within Punjab. He said the state exported more than $1.2 billion worth of textile and apparel products in the financial year 2024-25, accounting for around 4% of India's textile and apparel exports. Products manufactured in Punjab are exported to markets including the United States, the United Arab Emirates and the United Kingdom, he said.
The chief minister also highlighted Ludhiana's position as a major knitwear and apparel cluster in north India. According to him, the city accounts for around 90% of India's woollen knitwear production and nearly 65% of the country's hosiery production.
The state government is looking to expand the industry into segments such as technical textiles, industrial textiles, medical textiles, protective textiles and geotextiles. Sustainable fibres, smart fabrics, functional materials and high-performance sportswear have also been identified as areas for growth.
Mann said the recently launched industrial policy was prepared after consultations with stakeholders. He said it focuses on infrastructure development, reliable power supply, skill development, innovation and export promotion. These areas will be important for manufacturers looking to upgrade production and compete in specialised textile markets.
{{/usCountry}}Mann said the recently launched industrial policy was prepared after consultations with stakeholders. He said it focuses on infrastructure development, reliable power supply, skill development, innovation and export promotion. These areas will be important for manufacturers looking to upgrade production and compete in specialised textile markets.
{{/usCountry}}The policy's impact will depend on how effectively investment is translated into new capacity, technology adoption and market access. The availability of trained workers, modern infrastructure and reliable utilities will be important to support expansion.
Mann also described Mohali as emerging as India's second Silicon Valley, citing its growing industrial and technology ecosystem. He said stronger collaboration among industry, educational institutions, research organisations and technology providers would be necessary to improve competitiveness and strengthen Punjab's presence in global value chains.
The proposed expansion into higher-value textile segments could help diversify the state's industrial base, while the existing manufacturing clusters provide a foundation for further growth.