Key Challenges in India's textile sector
Typical Constraints: Lack of or limited access to capital and skilled talent arrest growth.
Lack of visibility: The industry's unorganized nature impedes scalability.
Disconnect: Inefficiencies in supply chains and inadequate facilities.
Geo-changes: intense rivalry from nations like China and the volatility of cotton prices.
Policy advocacy and intervention
PM MITRA Parks Scheme: To foster underpinning the urgency of scale and scope of developing advanced infrastructure to empower MSMEs.
Global aspirations: Targeting a lofty goal of $100 billion in textile exports by 2030.
Trade dynamics and Insights
Frontrunner: India boasts a remarkable 23% share of global cotton production.
Lacks supply chain competitiveness: India trails in high-end weaving and textile processing compared to competitors like China.
Brightspot: October 2024 witnessed an impressive 11.56% growth in textile exports, reaching $1.83 billion.
Future Statement
Relevance: Broader and relevant to the day, Free Trade Agreements (FTAs) are critical for boosting global trade access.
Reprioritisation: transitioning from a cotton-centric model to synthetic and eco-friendly textiles.
Sustainability is not a peripheral issue: prioritizing green practices and aligning with global trends toward polyester and sustainable materials to stay relevant.
Given the emerging global situation today that India's in a sweet spot, the sector needs to take confronting challenges in good stead, leveraging emerging opportunities so India's textile sector can consolidate its global position and achieve sustainable growth, driving a secured and brighter future for the iindustry.
CREDITS: recent CRISIL Ratings report