The Indian Textile Industry has an overwhelming presence in the economic life of the country.

It is
the second largest textile industry in the world after China. Apart from providing one of the basic
necessities of life i.e. cloth, the textile industry contributes about 14% to the country's industrial
output and about 17% to export earnings. After agriculture this industry provides employment to
maximum number of people in India employing 35 million people. Besides, another 50 million
people are engaged in allied activities. India is the largest producer of Jute, the 2nd largest producer
of Silk, the 3rd largest producer of Cotton and Cellulosic Fibers/Yarn and 5th largest producer of
Synthetic Fibers/Yarn.
The main objective of the textile policy 2011 is to provide cloth of acceptable quality at reasonable
prices for the vast majority of the population of the country, to increasingly contribute to the
provision of sustainable employment and the economic growth of the nation; and to compete with
confidence for an increasing share of the global market. India's textile industry is considered a
pioneer in the industry, as the industrialization of India in other areas is managed by funds generated
by the textile machinery industry. However, since the beginning of liberalization in 1992 to 1970, the
industry tends to protect domestic producers of cotton with a clear objective continuous erosion of its
prosperity.