India’s textile industry is one of the largest globally, with a rich history and significant economic contribution . It accounts for 2.3% of India’s GDP, 13% of industrial production, and 12% of the country’s exports . The sector is also a major employer, providing jobs to over 45 million people . The Indian textiles and apparel market is projected to reach US$ 350 billion by 2030 .
Strengths of the Indian Textile Industry:
The industry encompasses the entire value chain, from cotton cultivation to apparel manufacturing . India is the second-largest producer of both cotton and man-made fibers (MMF) global , Around 80% of the textile value chain operates within MSME clusters specializing in different textiles .Nearly 50% of exports were to the U.S. and EU .
Challenges Faced by the Indian Textile Industry
India faces stiff competition from countries like China, Vietnam, and Bangladesh . India’s cotton supply chain is spread across multiple states, increasing logistical costs and hindering large-scale production , Inefficiencies in infrastructure and logistics delay supply chain processes …
Fluctuations in raw material prices, coupled with high import duties, impact cost efficiency , Lower labor productivity compared to competitors , The industry faces environmental and social issues like waste, chemical hazards, and excessive water usage , Slow adoption of automation and modern machinery , A workforce that needs upskilling to meet industry demands .
Opportunities and Way Forward:
The government has implemented several measures to support the textile and clothing industry, such as the Production Linked Incentive (PLI) scheme and schemes for integrated textile parks , Aligning with sustainability standards, incorporating eco-friendly practices and ensuring compliance with ethical and social responsibility guidelines …
Encouraging technology adoption and innovation through research and development , Investing in skill development programs to improve labor productivity , Leveraging free trade agreements to expand market access, Optimizing logistics and transportation, and implementing digital technologies for transparency and efficiency , By addressing these challenges and leveraging its strengths and opportunities, India can enhance its position in the global textile market . for economy news click www.eminentnews.com
