The article describes the development trends of the textile industry of Ukraine. The main attention is paid to the analysis of transformation processes occurring in the industry during 1991-2018 in the period of independence of the Ukrainian state. Crisis phenomena, problems and contradictions in the industry under the influence of the liberalizing liberalization policy and the weakening of the role of the state in regulating economic relations both in the national economy as a whole and in relation to the textile industry are investigated. The article characterizes the state of the production system 'raw materials - primary processing - finished products - sales'. The critical dependence of the production of finished products on imported raw materials and semi-finished products is determined, and the influence of marketing, financial and management tools on strengthening the economic potential of industry enterprises to meet consumer demand domestic and foreign markets. The level of innovation activity of enterprises and its influence on ensuring their competitiveness was studied. The recommendations on the main directions of strategic development of the industry, its resource base on the basis of rational use of the principles of protection and doctrines of liberalism.