While this plan is audacious, it has the potential to be transformative.
Current Standing and Challenges
Despite being the second-largest textile exporter globally (7.4% share), India lags in garment exports (3.1% share). Garment exports have stagnated around $14-17 billion for the past five years, even dipping 10.2% in FY 2023-24. Textiles fared slightly better with a 12.5% decline in 2022. Here's what's holding India back:
- Cutthroat Competition: Vietnam and Bangladesh pose a major challenge with their tariff advantages.
- Fiber Focus Flaw: India excels in cotton but struggles with man-made fibers, a growing market segment.
- Workforce Issues: Low and poorly enforced minimum wages affect worker well-being and productivity. Skill development is crucial.
- Pandemic's Impact: COVID-19 disruptions linger, hindering the industry's recovery.
Government's Stitch in Time
Recognizing the textile industry's potential, the government is actively implementing solutions:
- Production Linked Incentive (PLI): This scheme offers financial incentives to boost man-made fiber and technical textile production.
- PM MITRA Parks: These parks aim to create large-scale, integrated textile manufacturing facilities for improved efficiency.
- Free Trade Agreements (FTAs): Recent deals with UAE and Australia, along with ongoing negotiations with the UK and EU, aim to reduce trade barriers and open new markets.
- Rebate Schemes: Extensions of schemes like RoSCTL provide financial benefits to garment exporters.
Vision 2030: A Sustainable Future
Vision 2030 acknowledges the growing demand for sustainable textiles. Initiatives include:
- Promoting recycling facilities to reduce waste.
- Encouraging resource-efficient processes.
- Emphasizing adherence to environmental, social, and governance best practices.
Industry Leaders' Call to Action
Industry leaders advocate for:
- Automation and digitalization for increased efficiency.
- Skill development programs to create a future-proof workforce.
- Embracing global best practices to stay competitive.
Collaboration is Key
Reaching the $100 billion target will be a challenge, but significant progress is achievable. Government support, industry initiatives, and a focus on sustainability are crucial to propel India's textile and apparel sector forward. Success hinges on addressing competitiveness issues, upgrading infrastructure, and ensuring a skilled and fairly compensated workforce.
India's rich textile heritage, strong raw material base, and large workforce position it well to become a global leader. Achieving Vision 2030, however, requires a united effort from all stakeholders: government, industry, and workforce.