India’s Textile Sector

Context

As per a report by the Global Trade Research Initiative India’s textile exports in 2023-24 stood at $14.5 billion, compared with $15 billion in 2013-14. 

About

• The report has raised concerns about a steady rise in India’s textiles and textiles imports in recent years, which had grown to almost $9.2 billion in 2023. 
• Complex strategies, import restrictions and domestic vested interests are holding up Indian textile export growth.

Textile and apparel Industry in India 

• Share in Domestic Trade: The home apparel & fabric enterprise in India contributes approx. 2.3 % to the country’s GDP, 13% to commercial production and 12% to exports. 
• Share in Global Trade: India has a 4% percentage of the global trade in textiles and textile.
• Export: India is the arena’s 3rd biggest exporter of Textiles and Apparel.
• Production of Raw Material: India is considered one of the largest producers of cotton and jute in the world. India is also the 2d biggest manufacturer of silk in the world and 95% of the sector’s hand-woven textile comes from India. 
• Employment Generation: The enterprise is the second biggest company in the country presenting direct employment to 45 million humans and 100 million people in the allied sector. 
•  sectors: Andhra Pradesh, Telangana, Haryana, Jharkhand, and Gujarat are the top fabric and textile manufacturing states in India.

Challenges Faced by the Textile Industry 

• Expensive Raw Material:  Recent Quality Control Orders issued for material imports have complex the procedure of bringing in critical raw fabric.
  • This scenario forces exporters to apply steeply-priced domestic substances, making Indian textiles overpriced and unappealing to global buyers who choose unique material resources.
• Cotton Price Fluctuations: India is a main producer and purchaser of cotton. Fluctuations in cotton expenses affect the price of production for textile manufacturers. 
• Imports from Bangladesh: With Bangladesh having obligation-free access to the Indian marketplace, those textiles are available at 15-20% much less value in India.
  • When textile is imported, jobs are lost in cotton, spinning, knitting, compacting, and processing segments in India.
• Competition within the International Market: The normal price distinction between Indian and Bangladesh textiles must be about 2-3%, however the labour expenses are lesser in Bangladesh by almost 30%.
  • Between 2013 and 2023, textile exports from Vietnam have grown nearly 82% to hit $33.4 billion even as that of Bangladesh has grown nearly 70% to hit $43.8 billion. 
• Infrastructure Constraints: Infrastructure demanding situations, which includes inadequate transportation structures, electricity shortages, and old technology, preclude the efficiency of the textile production procedure.
• Technology Upgradation: Many fabric devices in India still use old equipment and technology. 

Initiatives by Government of India for the Growth of the Textile 

• Amended Technology Upgradation Fund Scheme (ATUFS): To gain the vision of generating employment and promoting exports through “Make in India’’ with “Zero impact and Zero defect” in production, ATUFS was launched in 2016 to provide credit connected Capital Investment Subsidy (CIS). 
• Scheme for Capacity Building in Textile Sector (SAMARTH): To address the professional manpower requirement throughout the fabric region, the scheme was formulated, under the large policy pointers of “Skill India” initiative.
• National Technical Textile Mission: The Mission for a duration of 4 years (2020-21 to 2023-24) was accredited for growing usage of technical textiles in diverse flagship missions, programmes of the country which includes strategic sectors.
• Production Linked Incentive (PLI) Scheme – The PLI Scheme for Textiles to promote manufacturing of Manmade Fibre (MMF) apparel, MMF Fabrics and Products of Technical Textiles in the usa.
• PM-MITRA: To enhance employment generation through setting up of 7 PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks in Greenfield /Brownfield sites with world magnificence infrastructure.
• Scheme for Integrated Textile Parks (SITP): SITP is designed to promote textile industry clusters by presenting infrastructure guides, along with not unusual facilities, utilities, and services.
  • The aim is to encourage a more prepared and efficient method of textile production.
• Integrated Skill Development Scheme (ISDS): ISDS focuses on talent development within the fabric region to cope with the industry’s exertion challenges.
  • It aims to provide education to people and enhance their employability, contributing to the overall increase of the arena.

Way Ahead

• The enterprise maintains hope for a revival in demand however, what the industry wishes urgently is policy intervention at the Centre and State-tiers and holistic measures to enhance competitiveness.
• So, at the strains of the ‘Make in India’ marketing campaign, the authorities should encourage buy of Indian textiles. 
• While the current quantity of imports aren’t a lot in comparison with the overall size of the home marketplace, diversion of these orders to nearby producers will bolster production.

Source: The Hindu