Between FY2004 and FY2024, India’s merchandise exports surged six-fold, reaching a remarkable $437.1 billion. While this growth is impressive, a closer look reveals a mixed picture for the textile sector.
A Shifting Export Landscape
While India’s export basket diversified significantly, traditional sectors like textiles and clothing witnessed a decline in their share, dropping from 21.1% in FY2004 to 8% in FY2024. Although export volumes increased from $13.5 billion to $35.0 billion, this growth lagged behind sectors like energy, chemicals, and electronics.
Factors like intense competition from countries like Bangladesh and Vietnam, particularly in labour-intensive segments, have significantly impacted the sector.
Challenges and Opportunities
The textile industry faces several challenges:
- Global headwinds: The US-China trade war, the EU’s green regulations, and India’s reliance on China for critical inputs pose significant threats.
- Domestic hurdles: High input costs, inefficient logistics, and labor constraints hinder competitiveness.
- Shifting consumer preferences: The demand for high-value, sustainable, and technologically advanced textiles is increasing, requiring significant adaptation.
However, opportunities also abound:
- Focus on niche markets: Exploring niche segments like organic textiles, technical textiles, and high-end fashion can unlock new growth avenues.
- Technological advancements: Embracing technologies like automation, artificial intelligence, and sustainable production processes can enhance efficiency and quality.
- Brand building: Developing strong Indian textile brands in the global market can enhance value and command premium prices.
- Skill development: Investing in skill development programs for the workforce is crucial to adapt to evolving industry demands.
The Road Ahead
To revitalize the textile sector, India needs to:
- Improve infrastructure: Invest in better port facilities, efficient logistics networks, and reliable power supply.
- Address labour challenges: Implement labour reforms that enhance productivity and competitiveness.
- Promote innovation: Encourage research and development in textile technologies and sustainable practices.
- Leverage government support: Utilize government schemes and incentives to boost exports and attract investments in the sector.
By addressing these challenges and capitalizing on emerging opportunities, India can position itself as a leading player in the global textile market, contributing significantly to the country’s economic growth and development.
