The discovery of several spindles, and a piece of cotton stuck to a
silver vase, revealed that the spinning and weaving of cotton was known
to the Harrappans, nearly five thousand years ago. References to weaving
are found in the Vedic literature on the method of spinning, the various
materials used.

The
foundations of the Indian textile trade with other countries began as
early as the second century BC. A hoard of block printed and resist-dyed
fabrics, mainly of Gujrati origin, found in the tombs of Fostat, Egypt,
are the proof of large scale Indian export of cotton textiles to the
Egypt in medieval times.
In the 13th century, Indian silk was used as barter for spices from the
western countries. Towards the end of the 17th century, the British East
India Company had begun exports of Indian silks and various other cotton
fabrics to other countries. These included the famous fine Muslin cloth
of Bengal, Bihar and Orissa. Painted and printed cottons or chintz was
extensively practiced between India, China, Java and the Philippines,
long before the arrival of the Europeans.
Before the introduction of mechanized means of spinning in the early
19th century, Indian cottons and silks were hand spun and hand woven, a
highly popular fabric, called the khadi. Fabrics that use mill- spun
yarn but which are hand-woven are known as handloom.
Today cotton is an integral part of textiles in India. Nearly four
million handlooms are engaged in weaving fabrics of nearly 23 different
varieties of cotton.