How to Start a Textile Business in Australia from India- 2026 Guide

Introduction

Australia has become one of the most commercially compelling destinations for Indian textile entrepreneurs in 2026 — and the numbers back it up. India’s total exports to Australia have more than doubled since the ECTA came into force, rising from USD 4 billion in FY 2020-21 to USD 8.5 billion in FY 2024-25. 

Textiles and apparel have been among the primary contributors to that growth. From January 2026, all Indian exports are eligible for zero-duty market access into Australia.  

If you are an Indian founder, exporter, or manufacturer looking to build a textile business in Australia, this is the most favourable market environment in a generation.

This guide covers everything you need to know about how to start a textile business in Australia from India, what to sell, who is already doing it, and how to structure your business correctly.

Why Indian Textile Entrepreneurs Choose Australia?

Australia imports roughly 66.8% of its textile and apparel needs — the country simply does not manufacture at scale domestically. That import market was worth AUD 13.89 billion in just the first eight months of FY 2024-25, almost entirely supplied by overseas producers.

China has historically dominated this supply, but Australian brands are now actively reducing that dependence. Indian textile exports to Australia grew by nearly 11% in a single year based on late-2025 trade data. The shift is structural, not cyclical.

Australian consumer values have also moved in India’s favour. Around 87% of Australian shoppers say they will pay more for ethically made or sustainably sourced products. India’s handloom sector, organic cotton producers, and artisan fabric clusters are exactly what this market is looking for.

Australian Market Demand for Indian Apparel

Demand for Indian textiles in Australia falls into four clear categories:

• Sustainable and ethical fashion — Boutique retailers and conscious fashion brands across Sydney, Melbourne, and Brisbane are actively seeking traceable, artisan-made supply. Indian handloom, GOTS-certified organic cotton, and natural-dye fabrics sit squarely in this demand lane.
• Resort and casual wear — Australia’s warm climate drives year-round demand for linen, lightweight cotton, and breathable natural-fibre clothing. India is the world’s largest cotton producer, with over 30 million bales grown in the 2025-26 season — and the ability to go from raw fibre to finished garment within a single cluster like Tiruppur is a supply chain advantage few countries can match.
• Ethnic and fusion wear — With over 800,000 Indian-origin residents across Sydney, Melbourne, Brisbane, and Perth, demand for sarees, kurtas, lehengas, and salwar kameez is consistent year-round. Mainstream Australian interest in Indian-influenced occasion wear has also grown, particularly around festival and wedding seasons.
• Home textiles — Bed linen, bath towelling, cushion covers, curtains, and table linen from India are well-established in Australian homeware retail. The Indian government’s own ECTA-era target was to grow textile and apparel exports to Australia from USD 392 million to USD 1,100 million within three years — home textiles are central to that growth.

Best Textile Products from India for the Australian Market

These are the categories with the strongest proven demand among Australian buyers:

• Cotton knitwear and T-shirts — Produced in Tiruppur and Bangalore, these are price-competitive, high-volume, and increasingly sought for sustainability credentials.
• Linen and linen-cotton blends — Kolkata and Bhiwandi mills supply resort and lifestyle brands at price points well below European alternatives. Linen has become a staple of Australian fashion retail.
• Hand block-printed cotton — Jaipur’s block-printing clusters produce fabrics Australian boutique buyers actively seek for limited-run and premium collections.
• Handloom weaves — Chanderi, Pochampally ikat, Maheshwari, and Kantha textiles carry regional craft identity that commands premium margins internationally.
• Home textiles — Panipat remains one of the world’s most productive bed and bath linen clusters, with growing recycled-fibre output that resonates with Australian sustainability-focused buyers.
• Hand-knotted rugs and dhurries — Mirzapur, Bhadohi, and Jaipur supply Australian interior designers and rug specialists at healthy margins.
• Ethnic occasion wear — Steady diaspora demand year-round, with clear seasonal peaks around Diwali, Navratri, and wedding season.
• Performance and technical fabrics — Surat and Ahmedabad produce moisture-wicking, UV-resistant, and antimicrobial fabrics increasingly relevant to Australian activewear and workwear brands.

Top Indian Textile Companies Exporting to Australia

Several Indian businesses have established active export relationships with Australia and serve as useful benchmarks:

1. Arvind Limited (Ahmedabad) — Vertically integrated across denim, shirting, knits, and branded garments. Strong sustainability credentials with water-efficient manufacturing practices.
2. Welspun India (Mumbai/Anjar) — One of the world’s largest home textile exporters. Supplies branded bed and bath linen to major Australian retail chains.
3. Vardhman Textiles (Ludhiana) — A leading cotton yarn and woven fabric producer supplying Australian private-label apparel brands indirectly through the global fabric supply chain.
4. Orient Craft (Gurgaon) — A prominent garment export house known for high-value embroidery, beadwork, and embellishment work for international fashion brands.
5. Mafatlal Industries (Mumbai) — One of India’s oldest textile businesses, covering shirting, yarn-dyed wovens, and industrial textiles for export markets.

Worth noting: ECTA zero-duty benefits apply equally to every Indian exporter, regardless of size. Many Australian boutique retailers specifically prefer smaller Indian producers for their lower MOQs, design flexibility, and traceable craft origin stories.

How to Start a Textile Export Business from India to Australia?

Step 1 — Sort your Indian export credentials

Before any shipment leaves India, secure your IEC (Import Export Code) from DGFT, GST registration, RCMC from AEPC (apparel) or TEXPROCIL (cotton textiles), and an AD Code with your bank for receiving foreign exchange.

Step 2 — Register an Australian company

A Proprietary Limited Company (Pty Ltd) through ASIC is the standard structure. You will need an ACN, an ABN, and GST registration if Australian revenue exceeds AUD 75,000. An Australian-resident director is required — if you are staying in India, a nominee director handles this while you retain 100% ownership. OnDemand International provides this service.

Step 3 — Get import compliance right

All textile imports to Australia need accurate country of origin and fibre content labelling. A Certificate of Origin must accompany each shipment to access ECTA zero-duty rates. Children’s nightwear and sleepwear face additional ACCC product safety requirements.

Step 4 — Choose your sales channel

Wholesale to retailers via a local agent; B2B platforms like Faire (active in Australia) for reaching independent stores; or direct-to-consumer through Amazon.com.au or Shopify. A 3PL warehouse in Sydney or Melbourne handles local fulfilment if you go D2C.

Step 5 — Open an Australian bank account

Necessary for receiving AUD payments, managing local expenses, and satisfying buyer KYC requirements. Maintain FIRC documentation for all remittances back to India.

Conclusion

Zero tariffs, a structurally import-dependent market, growing demand for sustainable and artisan textiles, and a large Indian diaspora — the case for entering Australia as an Indian textile entrepreneur is straightforward. The founders who act now will build buyer relationships and brand recognition before the corridor becomes crowded.

OnDemand International’s business experts handle company incorporation, nominee director appointments, visa advisory, and ongoing compliance for Indian textile businesses entering Australia.

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