The Indian textile industry, the second-largest employer in the country, is experiencing a period of rapid expansion. Propelled by factors such as rising domestic demand, government initiatives, and global trade agreements, the industry is witnessing a surge in consumption and export opportunities.
With initiatives like the Textiles India 2030 mission, the government is providing crucial support in terms of infrastructure, technology integration, and skill development. Moreover, recent trade agreements with UAE and Australia are opening up new avenues for exports.
Embracing automation, artificial intelligence, and robotics, the industry is enhancing efficiency, productivity, and product quality. However, despite its growth, the textile sector faces challenges such as intense competition, infrastructure limitations, skill gaps, and complex regulations.
To overcome these hurdles and solidify its global leadership, the industry is urged to adopt sustainable practices, leverage e-commerce, and harness advancements in automation, AI, and blockchain. Meeting the demand for personalized products and experiences will also be crucial for future growth and customer loyalty.
Financially, the textile sector contributes around 2% to the country’s GDP and employs over 45 million people. In terms of exports, the industry earned over USD 43 billion in the fiscal year 2022-23.
Projections indicate that the positive momentum will continue, with a projected compound annual growth rate (CAGR) of 10-12% over the next five years. By 2028, the Indian textile industry is expected to reach a market size of USD 223 billion.
However, individual companies within the industry have experienced varying performances. Page Industries Ltd. and Vedanta Fashions Ltd. contribute significantly to the overall market capitalization of the sector. While some companies, like Cantabil Retail India and Welspun Living Ltd., have shown growth in net sales and profit, others, such as Himatsingka Seide Ltd. and TCNS Clothing Co. Ltd., faced declines.
In conclusion, the Indian textile industry is at a crucial juncture, balancing growth opportunities with critical challenges. By successfully navigating these obstacles and capitalizing on emerging trends, the industry can establish itself as a global powerhouse. However, addressing hurdles such as inadequate infrastructure, skill shortages, and regulatory complexities will be essential for sustainable growth and global competitiveness.
