India holds the top spot worldwide for cotton acreage and ranks second in both production and consumption. In the 2025-26 period, the country produced 290.91 lakh bales of cotton and consumed 328 lakh bales. The sector contributes nearly 19% of global fiber production, as per official data.
Recent government interventions aim to boost cotton production by focusing on productivity, quality, market access, and value addition. Price support during market downturns is provided through MSP operations. The Mission for Cotton Productivity targets an output increase to 498 lakh bales by 2031.
Efforts such as technology demonstrations, digital procurement, and traceability initiatives are enhancing competitiveness in the cotton sector. These initiatives are geared towards improving productivity, quality, and strengthening India’s position in the global cotton economy. Due to its economic significance, cotton is often referred to as ‘White-Gold’ in India.
Cotton cultivation supports the livelihoods of approximately 6 million farmers across the country, with 114.84 lakh hectares dedicated to the crop. It also generates employment for 40-50 million individuals involved in activities like cotton processing and trade.
Apart from domestic consumption, cotton plays a crucial role in earning foreign exchange through exports of fiber, yarn, fabrics, and garments. India remains a key player in the global cotton trade, exporting around 18 lakh bales in 2024-25, equivalent to 0.31 million metric tonnes.
The United States emerged as the largest importer of Indian cotton fabrics and made-ups, accounting for 26.35% of cotton exports. Bangladesh followed with 19.81%, and Sri Lanka with 5.11%. Noteworthy destinations also included the United Kingdom and the United Arab Emirates, showcasing diverse global demand for Indian cotton.
Cotton production in India is primarily concentrated in 9 major states, divided into 3 agro-ecological zones: Northern Zone (Punjab, Haryana, Rajasthan), Central Zone (Gujarat, Maharashtra, Madhya Pradesh), and Southern Zone (Telangana, Andhra Pradesh, Karnataka). Additionally, cotton cultivation takes place in Odisha and Tamil Nadu.
