Chief Minister Mohan Yadav has said that Madhya Pradesh is emerging as a major industrial hub, driven by its rich textile and apparel industry. He highlighted that the state’s agricultural prosperity, the exceptional craftsmanship of traditional weaver communities, a strong modern industrial base, and investor-friendly policies significantly boost the textile sector. While inaugurating GIS-Bhopal, Prime Minister Shri Narendra Modi declared Madhya Pradesh as the ‘Cotton Capital’ of India, recognizing it as the largest cotton-producing state in the country. He also praised the state’s renowned textile heritage, including Chanderi and Maheshwari sarees, Bagh print, Chipa hand-block print, and Batik print.
Additionally, he announced that one of India’s seven major textile parks is being established in Madhya Pradesh. Due to the state government’s proactive efforts, investors from India and abroad have shown keen interest in Bhopal. Chief Minister Dr. Yadav expressed his delight that Madhya Pradesh is rapidly emerging as India’s textile and apparel hub.
Investment in the textile industry received a significant boost at the Global Investors Summit in Bhopal. A major share of the Rs 21 thousand crore investment proposals for the MSME sector in Madhya Pradesh is directed toward the textile industry. This investment is expected to generate over 1.3 lakh employment opportunities for the youth. Additionally, an investment of Rs 8,616 crore has been proposed under the Department of Industry and Investment Promotion. Currently, Madhya Pradesh is home to more than 60 large textile mills, along with over 1,200 units operating in Indore’s readymade garment and apparel cluster.
The PM Mitra Park being built in Dhar district of Madhya Pradesh is the largest textile park in the country. It will create more than one lakh direct and more than two lakh indirect employment opportunities. PM-Mitra Park will re-establish the state in the textile industry.
Madhya Pradesh accounts for 43 percent of India’s organic cotton production and contributes 24 percent to the global cotton supply. The state produces approximately 31,700 metric tons of cotton annually, earning it the title of the Cotton Capital of India. Additionally, Madhya Pradesh produces 200 metric tons of silk, including mulberry silk.
The Madhya Pradesh government has introduced the New Textile Policy-2025, offering a range of financial and non-financial incentives to attract investment in the textile industry. Key provisions of the policy include: Entrepreneurs will receive 10 percent to 40 percent of their investment in plant and machinery as Investment Promotion Assistance. A 5 percent to 7 percent interest subsidy on loans will be provided for five years. Infrastructure Development Assistance of up to Rs 1 crore will be granted for the development of electricity, water, and road infrastructure in industrial units. A Green Industrialization Support of up to Rs 1 crore will be provided for waste management systems within industrial premises.
Investors setting up an apparel training institute will receive financial assistance of up to Rs 50 lakh. For the first time, the government will offer a 100 percent refund of patent fees (up to Rs 5 lakh) as Patent Support and provide necessary assistance in the patent registration process.
At GIS-Bhopal, Prime Minister Shri Narendra Modi outlined the 5F Vision—Farm, Fiber, Factory, Fashion, and Foreign—to drive growth in the textile and garment sector. He emphasized that India, particularly Madhya Pradesh, possesses all elements of the textile value chain. These include- strengthening the supply chain by linking cotton and silk farmers with raw material producers.
Enhancing the performance of fiber manufacturing and processing units to support industry growth. Developing the state’s textile manufacturing and industrial production ecosystem. Focusing on apparel design, branding, and creative innovation in the textile sector and boosting exports and expanding international market reach through global collaborations. Madhya Pradesh has taken concrete steps to turn this vision into reality.
Investment of Rs 3,513 crore has already been received in the textile sector
With the implementation of the new textile policy, Madhya Pradesh has attracted an impressive Rs 3,513 crore investment under the Production Linked Incentive (PLI) scheme, the highest in the country. Additionally, major investments are flowing into Biaora and Neemuch, where mega textile parks are being developed to boost industrial growth.
Madhya Pradesh is advancing towards modern industrialization while preserving its rich textile heritage. With investor-friendly policies, world-class textile parks, and special economic incentives, the state is making a mark not only in India’s textile sector but also in the global market.
Major companies investing in Madhya Pradesh’s textile sector
Leading companies are making significant investments in Madhya Pradesh, strengthening its position as a textile and industrial hub. OBT Private Limited – CEO, Ingo Soeller stated that the company, a leader in technical non-woven fabric manufacturing, is investing over Rs 100 crore to establish an industry in Bhopal. Similarly, Arvind Group’s, Head of Corporate Affairs – Dr. Param Shah, announced an investment of over Rs 800 crore in Madhya Pradesh.
