India targets $100 billion of textiles exports by 2025

India's journey towards becoming a self-reliant superpower is majorly contingent on its ability to turn itself into a manufacturing giant. Becoming self-sufficient and moving towards becoming a developed economy, India is set to emerge as a global hub of the textile industry with a staggering workforce of over 45 million individuals and an additional 100 million involved in related activities, the textiles sector emerges as a crucial contributor to the country's foreign exchange revenues.

Garnering a notable 5% share in global trade and accounting for 13% of the country's overall export earnings, this sector sets its sights on achieving a targeted export value of $100 billion by the year 2025. Projected to reach an estimated value of nearly $250 billion , equivalent to 4% of the nation's GDP, the textiles sector foresees an unprecedented surge in production and consumption, surpassing all previous records.

With a rich heritage of textile traditions and a skilled workforce, India is leveraging its strengths to position itself as a prominent player sooner than later. Several factors fuel the growth of this sector in India, including the presence of a complete textiles value chain, self-reliance in raw materials bolstered by robust spinning and weaving capacities, competitive manufacturing costs in comparison to neighbouring countries, favourable government policies, a vast and expanding domestic market, extensive digital penetration facilitated by ecommerce, the availability of a substantial pool of skilled and semi-skilled workers at affordable wages, and a supportive infrastructure that enables seamless operations. India has a long-standing legacy in the textile industry, dating back centuries.

From exquisite handlooms to intricate embroideries, India's diverse textile traditions have captivated the world. The country's expertise in producing a wide range of fabrics, such as cotton, silk, wool, and jute, has been a testimony to its rich textile heritage. This legacy serves as a solid foundation for India's current position as a textile hub. Recognizing the immense potential of the textile sector, the Indian government has implemented various initiatives and policy reforms to promote its growth.

The ‘PM Mega Integrated Textile Region and Apparel (PM Mitra)’ parks and the ‘Make in India’ campaign have been successful in boosting domestic manufacturing. With the ability to generate one like direct and two lakh indirect jobs with each park, there is a possibility of investment of Rs. 70,000 crore which will open the path towards economic prosperity.

The first seven PM Mitra parks shall be established in Tamil Nadu, Telangana, Karnataka, Maharashtra, Gujarat, Madhya Pradesh and Uttar Pradesh with over Rs. 4,000 crores being already spent on the same. The scheme and parks will encourage global companies to participate in ‘Make in India’, promote investment, harnessing innovation, generate employment and establish India as a major player in the field of textile manufacturing and exports involving plug-in facilities, training and research along with building a world-class industrial infrastructure. It will provide an opportunity to create an integrated textile value chain in one place with various utilities provided for.

The introduction of the Goods and Services Tax (GST) has streamlined taxation and improved ease of doing business for textile enterprises. Additionally, the government has implemented schemes like the Technology Upgradation Fund Scheme (TUFS) to provide financial support and encourage modernisation and technology adoption in the industry. India's competitive advantage lies in its abundant availability of raw materials, a diverse range of textiles, and a skilled workforce.

The country is one of the largest producers of cotton, providing a reliable and cost-effective resource for the textile industry. Moreover, India's skilled artisans and weavers possess a deep understanding of traditional techniques and craftsmanship, adding immense value to the products.

The blend of traditional craftsmanship and modern technology is a winning combination that sets India apart as a textile hub. While India's ascent as a textile hub is promising, there are some major complexities to be taken care of to ensure that the promising future comes to fruition. The textile sector is grappling with the arduous task of regaining Foreign Direct Investment (FDI) levels experienced prior to the global pandemic.

The repercussions of the global pandemic in 2020, the Russia-Ukraine conflict, inflationary pressures in countries like the United States, and the looming threat of recession, coupled with a surge in cotton prices, are unfolding in a dramatic fashion, resulting in sluggish demand from key export destinations such as the European Union and the United States. The Government of India is undertaking decisive measures to confront and overcome the challenges plaguing the textile industry. With India's entry into the Amrit Kal and its prestigious G20 presidency, the government is actively collaborating with the industry, implementing enabling policies, and spearheading initiatives to foster high growth.

Recent initiatives aimed at revitalizing the sector include the facilitation of 100% Foreign Direct Investment (FDI), the introduction of the Production Linked Incentive (PLI) scheme, the establishment of the National Technical Textiles Mission (NTTM), and as abovementioned the imminent announcement of the Prime Minister Mega Integrated Textile Region and Apparel (PM-MITRA) parks.

Notably, the SAMARTH scheme has been launched, with an ambitious target to train over one million individuals within three years. Furthermore, the budget for the textile sector in the upcoming fiscal year, amounting to a remarkable INR Rs. 4,389.34 crore, represents a substantial 22.6% increase from the previous year's allocation. To further bolster the textile industry, Special Economic Zones (SEZs) have been set up across the country to provide a conducive environment for textile manufacturers. These dedicated textile zones offer state-of-theart facilities, streamlined processes, and economies of scale, attracting both domestic and foreign investments. The government's focus on infrastructure development has enhanced the competitiveness of Indian textiles in the global market.

India has forged numerous Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs), establishing impactful partnerships with countries like UAE, Japan, South Korea, and Australia. Engagements with other significant partners including the United Kingdom, European Union, and Canada are currently underway, with the objective of securing duty-free access to their markets. However, to optimize the potential of these agreements, it is imperative to adopt a proactive approach in engaging with these countries and harnessing the FTAs to drive substantial growth in exports of textile products as well. Nonetheless, India's textile exports have been steadily increasing, reflecting the growing global demand for its products.

The country is renowned for its diverse textile offerings, including garments, home textiles, technical textiles, and handicrafts. With its competitive pricing, quality craftsmanship, and adherence to sustainability standards, Indian textiles have gained a strong foothold in international markets.

Additionally, the recent enactment of four labour codes by the Indian government promises to revolutionize business operations when effectively implemented. Several schemes and the intent with which the government is moving in the sector will ensure that the text and industry becomes a globally competitive with increased production, large investment and massive employment generation. India's transformation into a textile hub is a testament to its rich heritage, competitive advantages, and this transformative journey not only serves the best interests of the textile industry stakeholders but also resonates with discerning consumers worldwide.