India produced 290.91 lakh bales of cotton in 2025-26 and exported the fibre worth $11.49 billion in FY25, according to an official factsheet released on Monday, 20 July 2025. The country ranks first globally in acreage and second in both production and consumption, cementing its status as the world's most strategically significant cotton cultivator.

Scale of the Sector

Domestic consumption outpaced output, reaching 328 lakh bales in 2025-26 against production of 290.91 lakh bales — a gap that underscores the sector's dependence on efficient supply-chain management. India's cotton footprint spans 114.84 lakh hectares, supporting the livelihoods of approximately 6 million farmers and sustaining an additional 40 to 50 million people in processing, ginning, and trade.

The crop contributes nearly 19 per cent of global fibre production, according to the government, and its economic centrality has earned it the popular designation 'White Gold'.

Export Performance and Key Markets

In 2024-25, India exported an estimated 18 lakh bales — equivalent to 0.31 million metric tonnes — accounting for roughly 3.37 per cent of total world exports of 541.69 lakh bales. In value terms, cotton exports — spanning raw fibre, yarn, fabrics, and garments — reached $11.49 billion in FY25.

The United States emerged as the single largest destination for Indian cotton fabrics and made-ups, absorbing 26.35 per cent of exports, followed by Bangladesh at 19.81 per cent and Sri Lanka at 5.11 per cent. The United Kingdom (2.38 per cent) and the United Arab Emirates (2.32 per cent) rounded out the top five destinations, reflecting diversified global demand for Indian cotton products.

Government Interventions and Productivity Targets

The government has outlined a cluster of policy measures aimed at lifting output and competitiveness. Minimum Support Price (MSP) operations continue to provide a price floor during market downturns, shielding farmers from volatility. The Mission for Cotton Productivity carries an ambitious target of raising national output to 498 lakh bales by 2031 — a near-71 per cent jump from current levels.

Alongside MSP support, the government has introduced technology demonstrations, digital procurement platforms, and traceability initiatives designed to improve quality certification and strengthen India's competitive positioning in premium export markets. Officials said these efforts are focused on productivity, quality, market access, and value addition.

Geography of Cotton Cultivation

Cotton production is concentrated across 9 major states grouped into three agro-ecological zones. The Northern Zone covers Punjab, Haryana, and Rajasthan; the Central Zone encompasses Gujarat, Maharashtra, and Madhya Pradesh; and the Southern Zone includes Telangana, Andhra Pradesh, and Karnataka. Odisha and Tamil Nadu also contribute to national output outside these primary zones.

With the Mission for Cotton Productivity target of 498 lakh bales by 2031 now on the table, the next test will be whether structural reforms in seed technology and water management can close the gap between ambition and field-level reality.