Best Textiles Stocks to Invest in Jan, 2026

What are Textiles Stocks?

Textile stocks refer to the set of shares belonging to the companies that produce, manufacture, distribute, and market textile products, from fibres to fabrics to yarns to apparel. Textile stocks can be categorised into different types, namely, cotton-based, synthetic and blended, garment, technical, and home textiles stocks.

The paced-up textile production in India dates back to the British colonial period, which witnessed India as the major exporter of textiles to multiple nations. However, the textile industry faced severe challenges and competition, given the modernisation that the country came across right after the independence.

Despite the limitations and restrictions that the country faced, the Indian textile industry is today the world’s largest, comprising 4% of the global textile and apparel trade, with cotton, jute, and silk being the major produce.

Moreover, India is the origin of 95% of hand-woven fabrics globally. Investors, given the economic progress of the sector, can be assured of reaping more and more profits out of the investments they make in this industry’s stocks.

Why You Should Invest in Textile Stocks?

You should invest in textile stocks for the growth they experience and the opportunities they offer. The Indian middle class has a significant purchasing power and hence they look for products that help them maintain a standard lifestyle. With the increasing demand for different fabrics and textiles in the fashion industry, the demand for the textile products has experienced a boost. 

Almost 14% of the country’s industrial output is the contribution of the textile industry. Cotton being the fabric that dominates the textile and apparel industry, makes India the most sought-after market, with the country accounting for 70% cotton out of the total textile production.

India, the producer of such important fabrics and textile products, has become one of the most significant hubs for investors who want to profit from the highly volatile market conditions. In addition, the Indian government keeps on introducing schemes to drive the productivity and profitability of the sector, reflecting the trust that the authorities have in the industry.

What is the Future of Textiles Stocks?

The future of textiles stocks is bright and promising. With India’s textiles market hitting a significant growth figure by 2030 and the country being the third-largest exporter of textiles and apparel,  the opportunities for investors seem clear.

The industry growth is a direct reflection of the economic growth in the nation, which indicates a boosted textiles market and well-driven investment option that it would bring along in the coming years. Moreover, India is one of the top five global exporters of textiles belonging to different categories, be it cotton, synthetic, blended, garment, technical, or others.

With environmental concerns increasing in the country and the world, Indian textile players are emphasising the use of organic materials to ensure there is no pollution in the surroundings. Given the water scarcity that the country has been facing, the textile market is working on finding ways to carry out production using comparatively less water than usual. Such sustainable approaches are also making the textile industry future-ready with respect to rising environmental awareness.

What Factors Affect Textiles Stock Prices?

The factors that affect textiles stock prices are raw materials prices, foreign exchange rates, market trends and increasing competition.

• Raw materials prices: The price of the raw materials and their availability, which directly impacts the pricing, affect the textile stock prices. Some of these raw materials include cotton, yarns, fabrics, etc., without which the garments and apparel cannot be manufactured. When production and manufacturing are affected, stock prices decline.
• Foreign exchange rates: Any fluctuation in the currency rate affects the stock prices of the textile industry. India is among the top five global exporters of textiles products, and its export figures are expected to reach $100 billion by 2030. The changes in the foreign exchange rates, in such a scenario, must be kept under strict supervision before investing in these stocks.
• Market trends: The demand for textile products in the market must be monitored. The inclination of the consumers towards different products can be measured to determine which stocks would do well. Consumer preferences play a vital role in figuring out the latest trends, and that’s what is reflected in the textile stock price
• Increasing competition: The level of competition in the market also determines the price of the stocks. Hence, investors must analyse the intensity of the competition and figure out the market share of each brand before making any investment decision.

Some other factors that you can also consider to check how they influence the textile stock prices include the company financials, government policies, and management quality.

What are the Advantages of Investing in Textiles Stocks?

The advantages of investing in textile stocks include the growing domestic market, government support, diversification opportunities and export potential.

• Growing domestic demand: The textile industry in India contributes 2.3% to the GDP, which is likely to increase to 5% by 2030. This shows the positive movement of the domestic demand for textile products in India, thereby indicating the return opportunities that investing in these sector stocks would bring to investors. 
• Government support: Given the remarkable economic contribution of the textiles industry towards India, the government also feels responsible for boosting the sector. To boost the capabilities of this sector, attract private equity, and offer employment to more people, the government has introduced multiple schemes, including the Technology Upgradation Fund Scheme (TUFS), Scheme for Integrated Textile Parks (SITP), and Mega Integrated Textile Region and Apparel (MITRA) Park.
• Diversification opportunities: Investors can spread their risks by investing in different sectors together. The textile industry stocks are hardly correlated with other sectors operating in the market. Hence, any negative movement of the stock prices of the textile sector would not have any significant effect on the stocks of other industries.
• Export potential: In 2024-25, the textile industry recorded exports, including handicrafts products, worth $28.72 billion, which will increase approximately three to four times by 2030. This indicates the chances of bigger export contracts in the coming years, opening more opportunities for profits to investors.

Now when the benefits are clear, it is important to understand the challenges that investors might face while they decide to invest in the textiles stocks.

What are the Risks of Investing in Textiles Stocks?

The risks of investing in textiles stocks are policy dependencies, intense competition, fluctuating demand, and supply chain disruptions.

• Policy dependencies: Changes in trade, taxation, and regulatory policies significantly affect textile production and distribution and impact stock prices and returns. Increasing costs lead to hampered operations.  
• Intense competition: Though India is one of the largest exporters of textile products, it faces tough competition from China, Bangladesh, and Vietnam. This leads to intense international competition for the nation, which negatively affects the performance of the textile stocks.
• Fluctuating demand: When the economy progresses, the demand for garments and clothing is high. However, in situations of economic slowdown, consumers cut costs, and their fashion accessories are the first thing they cut short their expenses on. This, in turn, affects the textile industry adversely.
• Supply chain disruptions: If the global supply chain network doesn’t work properly, the distribution of the items would be affected, hampering the textile player’s reputation. Some events that might affect the supply chain include geopolitical tensions, natural calamities, and pandemics.

Besides the above-mentioned risks, textile stocks also face limitations due to fluctuating raw materials prices, economic cycle dependencies, and operational challenges.

When Textiles Stock Prices Go Up?

The textiles stock prices go up when the demand is high, and the government supports the sector through different initiatives. Cotton is considered one of the most important raw materials for the textile industry, and India is expected to produce 7.2 million tonnes of cotton by 2030.

The growing demand for cotton and also the rest of the textile-related items nationally and internationally is likely to boost the industry taking the stock prices of the sector to new highs. 

In 2024-25, the organised apparel sector’s revenue increased by 8-10% as a result of the rising demand due to the easing inflation and wedding seasons.

When Textiles Stock Prices Go Down?

Textiles stock prices go down when the price of the raw materials increases or the consumers’ confidence in the product declines. Though cotton continues to be one of the major products of India, its production witnessed a 7.4% decline in 2024-25.

The reasons behind this decline were excessive rainfall and reduced planting areas. This decline in cotton production affected its availability throughout the globe, adversely impacting the sector and stock prices. 

Similarly, in 2022, India’s textile industry was severely affected when consumers from the United States, Europe, and other developed nations cut their expenses on clothing, given the increasing inflation due to the Russia-Ukraine war.