To boost cotton production, a pilot project was launched this April in 10 states in India. The project has been so successful that the government plans to extend it for an additional year beyond March 2024, according to officials familiar with it. The pilot project has contributed to an estimated growth rate of 20-25% in the participating states, a significant increase when the overall cotton production in the country has been declining.
The success of the cotton pilot project is attributed to the adoption of best agronomy practices, quality seeds, and high-density planting systems. The project has engaged 15,000 farmers across the ten states, and the outcome of the data will be evaluated by the Indian Council of Agricultural Research (ICAR) in January.
The ten states where the pilot project is ongoing are Uttar Pradesh, Haryana, Punjab, Rajasthan, Madhya Pradesh, Gujarat, Maharashtra, Tamil Nadu, Andhra Pradesh, and Karnataka. The increase in cotton production from these states is expected to strengthen India’s cotton export ecosystem and enhance the country’s position in global cotton export markets. India has faced challenges from other cotton-exporting countries such as Bangladesh and Vietnam.
According to data released by the commerce ministry, India’s exports of cotton, fabric, yarn, and handloom products rose by 5.7% from April to October 2023 compared to last year. This export growth is a positive sign for the textile industry, which has faced difficulties due to reduced demand from global brands. However, experts believe that the demand for Indian textiles will improve as global brands normalize their buying and inventory positions stabilize.
Despite the positive outlook for exports, India has recently witnessed a decline in cotton production. Annual cotton production was 37 million bales in 2017-18, which fell to 31.12 million bales in 2021-22. The ongoing fiscal year is expected to witness a further decline in production, with estimates suggesting it may shrink to 31.6 million bales.
Cotton is a crucial sector for the Indian economy, providing employment to around six million farmers and supporting the livelihoods of 35 million farmers globally. Recognizing the potential in the textile industry, the Indian government is also focusing on increasing its presence in technical textiles, including medical apparel and other engineered clothing products used in various industries. India exports technical textiles worth $2.5 billion and aims to achieve a growth target of $10 billion in the next five years.
The Indian textile industry’s success is also attributed to its unique designs, use of sustainable fibers, and superior quality, making it a preferred choice for Western markets. As global brands adopt a “China Plus One” strategy after the pandemic, Indian suppliers find strategic partnership opportunities due to their product strength. The government’s support schemes and tax waivers further helped textile exporters scale up their production.
The Indian government actively pursues free trade agreements to boost exports and promote domestic growth. Despite the positive outlook, high-interest rates in Western markets have dampened demand. However, India’s merchandise exports to countries with which it has signed regional and free trade agreements have consistently grown over the past decade. These agreements include countries such as Japan, South Korea, the Association of Southeast Asian Nations (ASEAN), and the South Asian Association for Regional Cooperation (SAARC).
While challenges remain, the extension of the successful cotton pilot project and the focus on technical textiles indicate the government’s commitment to revitalizing the textile industry and strengthening India’s position as a global player in cotton production and textile exports.
