With the advent of economic reforms and phase out of Multi Fibre Agreement (MFA), it was expected that the textile industry contribution and status will improve. The present paper has analysed the contribution and status of textile industry in post MFA period. For the analysis Economic Outlook of the Centre for Monitoring Indian Economy (CMIE), database have been used. The paper found improving contribution and status of textile industry in manufacturing and industrial GDP. While as percentage of GDP it is declining. The increase in high value segment of factories in comparison to traditional textile sector has limited the contribution and status in Indian economy. The absolute decline of factories in footwear sector should be reversed.