The Indian textiles and clothing industry has been severely affected, facing significant challenges related to raw materials, including cotton and man-made fibres, and a drastic increase in power costs across various manufacturing states. K.V. Srinivasan, the newly-elected president of the International Textile Manufacturers Federation (ITMF), expressed concern over the situation, highlighting the urgent need for policy changes to ensure uninterrupted access to raw materials at globally competitive rates.
In a press release, Mr Srinivasan emphasised the necessity of removing the 11% import duty on cotton, addressing the Quality Control Order (QCO) and price issues concerning PTA, MEG, Polyester, and Viscose, to establish a level playing field for the industry. He also criticised the government’s decision to enforce QCOs on raw materials, stating it had negatively impacted the man-made fibre value chain.
Moreover, Mr. Srinivasan pointed out that the government’s substantial incentives for new investments were undermining the industry’s existing capacities, rendering them financially nonviable. This issue was exacerbating the industry’s struggle with excess capacity.
Despite India being the second-largest producer of raw materials, the country still needs to leverage this advantage, while neighbouring countries like Bangladesh and Vietnam, lacking such resources, have experienced exponential export growth rates. Mr. Srinivasan highlighted that Indian textile exports have stagnated at $35 billion for over a decade.
The Indian government faces mounting pressure to address these issues and initiate necessary reforms to revitalise the textile and clothing industry. Failure to do so would not only continue to hamper domestic competitiveness but also hinder the industry’s global performance.
Industry experts and stakeholders hope that the government will listen to these concerns and implement effective measures to support the troubled sector. Only then can the Indian textiles and clothing industry reclaim its position as a global powerhouse.
