The global textile landscape is undergoing a significant transformation, with shifting trade winds creating both challenges and exciting prospects for India’s textile industry. As geopolitical tensions, particularly between the US and other major economies, simmer, India stands poised to weave its way into a stronger position on the world stage. A recent report by the GTRI economic think tank suggests that while India has previously benefited from trade disruptions, bolstering domestic capabilities is crucial to fully capitalise on future opportunities.
Past trade frictions have already redrawn the map of global commerce. While nations like Mexico, Canada, and those in Southeast Asia saw substantial gains, India also experienced a notable uptick in exports to the US, driven by sectors like electronics, pharmaceuticals, and engineering. However, the textile sector, a cornerstone of India’s economy, has not yet fully realised its potential in this shifting landscape.
The GTRI report highlights a critical vulnerability: India’s textile exports often depend heavily on imported inputs. This reliance on foreign raw materials and components, from fibres to dyes, creates a weakness in the supply chain. For example, the creation of finished garments often necessitates importing fabrics or even yarns, hindering the sector’s ability to maximise value addition within the country.
To truly seize the moment and establish itself as a dominant force in the global textile market, India needs to address these challenges with a strategic focus on the following:
- Spinning a Stronger Domestic Yarn: The key lies in strengthening the domestic textile ecosystem. Investing in the local production of essential inputs, such as high-quality fibres (cotton, silk, synthetics), yarns, dyes, and finishing chemicals, will drastically reduce reliance on imports and enhance the sector’s resilience to global supply chain disruptions. This includes promoting research and development in innovative and sustainable textile materials.
- Weaving Efficiency and Competitiveness: Enhancing productivity and reducing production costs are paramount. This can be achieved through the modernisation of textile manufacturing processes, the adoption of advanced technologies, and skills development programs for the workforce. Focusing on sustainable and efficient manufacturing practices will further enhance India’s appeal in the global market.
- Streamlining the Textile Trade: Simplifying regulatory processes and reducing bureaucratic hurdles are essential to attract both domestic and foreign investment. Creating a more business-friendly environment will encourage innovation, facilitate expansion, and enhance the sector’s overall competitiveness. This includes improving logistics and infrastructure related to textile production and export.
