India’s Textile Industry: Challenges, Opportunities, and the Path to Global Leadership

Current Affairs National

Posted by Newadmin on 2025-03-06 09:03:39 |

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India’s textile industry has immense potential to become a global leader, driven by a growing domestic market and increasing global interest. It currently contributes 2.3% to India’s GDP, projected to reach 5% by 2030, and employs 4.5 crore workers. In FY24, exports were valued at USD 35.9 billion, with major markets in the US, EU, and UAE. India ranks as the 6th largest exporter of textiles globally and is the 2nd largest producer of cotton and jute.

Despite this potential, the industry faces key challenges, including high production costs, fragmented supply chains, lack of Free Trade Agreements (FTAs), and sustainability pressures. India’s textile exports are more expensive compared to countries like China and Vietnam, due to higher labor costs and fragmented supply chains. Additionally, the industry is facing stringent environmental norms, impacting global competitiveness.

To overcome these challenges, India needs to strengthen supply chains by developing vertically integrated textile parks, reassess raw material costs, and establish more PM MITRA parks in labor-abundant regions. Policy reforms to secure FTAs with key markets, along with sustainability incentives for MSMEs, will help boost competitiveness and foster long-term growth.

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