Textile and Apparel Industry in Telangana
Telangana has a long-established textile tradition dating to the 19th century, when cotton accounted for half of the Hyderabad State's exports and Warangal became the largest carpet exporter to Europe. In the 21st century, the state has pursued a strategy to rebuild its textile and apparel manufacturing sector through industrial policy, infrastructure development, and foreign investment. The government aims to make Telangana "the textile capital of South Asia by 2047"[^c2], with the broader national target of reaching US$100 billion in textile and apparel exports by 2030[^c1].
The state's textile policy framework, anchored by the Telangana Textile and Apparel Policy (T-TAP) and the PM MITRA scheme, offers capital subsidies of up to Rs 40 crore for new units, power tariff concessions, and SGST reimbursement[^c3]. The flagship Kakatiya Mega Textile Park (KMTP) in Warangal, inaugurated as India's first fully functional PM MITRA Park, has secured over Rs 3,800 crore in committed investment and is expected to generate more than 24,400 jobs. Development capital support of up to Rs 500 crore per park is available under the central scheme[^c7].
Major manufacturers including [[Kitex Group]], [[Youngone Corporation]], [[Texport Industries]], and [[Gokaldas Images]] have established production facilities in the state, primarily in [[Warangal]] and [[Sircilla]]. These factories are predominantly export-oriented and employ a workforce that is over 80 percent women. Skill training programs operated by ALEAP-NAIPUNYAM, ATDC, and other agencies supply trained labour to the growing garment sector, with initiatives targeting under-educated women and rural youth[^c6].
Despite this growth, the sector faces significant challenges. Telangana ranks 16th among Indian states in textile and apparel exports, well behind traditional hubs such as Tamil Nadu and Gujarat[^c4]. The traditional powerloom industry in towns like Sircilla has experienced sharp decline, with the number of operational looms falling from 27,000 to approximately 10,000, leading to weaver distress. US tariffs of 50 percent imposed in 2025 have further disrupted exports, causing some textile units to close and leaving an estimated 20,000 workers without work[^c5].