The Indian textile industry is a major sector that provides employment to millions of people. It can be divided into organized and unorganized sectors. The organized sector includes spinning mills and composite mills, while the unorganized sector includes powerlooms, handlooms, and decentralized production units. The textile industry faces challenges like outdated technology, lack of skilled labor, and environmental pollution from small units. The government is taking measures like technology upgradation programs and funding to promote modernization and sustainability in the industry.