2024 has seen significant government initiatives impacting various sectors in India, with positive implications for the textile industry. The Department for Promotion of Industry and Internal Trade (DPIIT) has focused on key areas including production incentives, logistics streamlining, and increased foreign direct investment (FDI), all of which contribute to a more robust and competitive textile landscape.
A key driver is the Production Linked Incentive (PLI) scheme. While not exclusively focused on textiles, the broader PLI scheme, with an outlay of Rs 1.97 lakh crore (over USD 26 billion) across 14 key sectors, aims to bolster domestic manufacturing and exports. This initiative is expected to indirectly benefit the textile sector by strengthening related industries and creating a more favourable manufacturing ecosystem.
Logistics improvements are another crucial factor. The DPIIT has been actively promoting logistics-related education, with new courses introduced in 115 universities and a memorandum of understanding (MoU) signed with Gati Shakti Vishwavidyalaya. The upcoming release of the 6th edition of the Logistics Ease Across Different States (LEADS) report in December 2024 will provide further insights into the progress made. These efforts, aligned with the National Logistics Policy 2022, aim to reduce logistical bottlenecks and costs, which are particularly relevant for the textile industry’s complex supply chains. The development of Sectoral Plans for Efficient Logistics (SPEL), with finalised plans for coal and cement and ongoing development for sectors like food processing, pharmaceuticals, and steel, suggests a systemic approach to improving logistics across the board, which could eventually encompass textiles as well.
Furthermore, India has witnessed a significant increase in FDI. In FY 2023-24, over 98% of FDI equity inflow was received through the automatic route, simplifying the investment process. From 2000 to 2024, total FDI reached USD 991 billion, with a substantial 67% (USD 667 billion) received in the last ten years (2014-2024). In the first quarter of FY 2024-25, FDI inflow surged to USD 22.5 billion, a 26% increase compared to the same period in FY 2023-24. This increased investment activity across various sectors can create opportunities for textile businesses through collaborations, technological advancements, and infrastructure development.
Finally, the government’s focus on reducing compliance burdens, with over 42,028 compliances already reduced, further streamlines business operations for the textile sector by reducing red tape and administrative hurdles.
These combined efforts by the DPIIT signal a positive outlook for the Indian textile industry, creating a more conducive environment for growth, innovation, and global competitiveness.
