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Viewpoint: State of India's Textile Exports | 03 July, 2025
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TL;DR
India aims to boost textile exports to $100 billion by 2030-31, leveraging a new task force and strategies like increasing garment exports and FTAs. Challenges include high production costs and fragmented supply chains, but technology and integrated parks offer solutions.
Key Takeaways
- India's textile sector employs 45 million people, 50% women, making it crucial for social structure and job creation across 500 districts.
- Shifting exports from raw cotton and fabric to finished garments is essential to create more jobs and capture higher value in global markets.
- India lags in man-made fiber garment exports; dedicated SEZs for synthetic materials could help compete in suits and formal wear.
- High production costs, with India's SAM at 5-6 rupees vs Bangladesh's 3 rupees, undermine cost competitiveness in garment manufacturing.
- Only 15% of India's textile workforce has formal training, far below countries like Germany and Vietnam, limiting skill readiness.
- Fragmented supply chains increase costs; vertical integration through PMitra parks and technology like IoT can reduce operational waste by 10-15%.
- A real exchange rate appreciation hurts manufacturing; maintaining a competitive rate with RBI consensus could boost textile exports.
- Accelerating the EU FTA for zero import duty access is critical, as the EU market is as large as the US and offers significant growth potential.
In This Video
- 00:00Introduction to Textile Exports
Host Frank Rousen Pereira introduces the show and the task force to boost textile exports.
- 00:56Task Force Strategies Discussed
First meeting covers strategies for increasing exports and expanding market share globally.
- 01:57Current State of Textile Exports
Shubra highlights India's global rank, trade surplus, and employment of 45 million people.
- 04:02Need for Garment Export Focus
AJ Shankar urges shifting from raw cotton to garment exports for more jobs.
- 06:17Infrastructure and Cost Challenges
Proposes textile parks with worker housing to improve competitiveness in price-sensitive markets.
- 08:44Roadmap and Key Challenges
Kamakshi outlines high production costs, skill gaps, and fragmented supply chain as major issues.
- 11:18Technology and Policy Solutions
Suggests using AI and IoT to reduce waste, and FTAs to boost exports.
Questions & Answers
What is India's textile export target?
India aims to increase textile exports to $100 billion by 2030-31, as per a task force led by the commerce secretary.
How many people work in India's textile industry?
The textile sector employs 45 million people directly, with 50% being women, making it crucial for employment and social structure.
What are India's top textile export markets?
India exports textiles to 168 countries, with the US as the largest partner ($10 billion), followed by the EU, UAE, and Bangladesh.
Why should India focus on garment exports?
Exporting garments instead of raw cotton or fabric creates more jobs and adds value, requiring a structural shift in the export basket.
What challenges does India's textile sector face?
Key challenges include higher production costs, limited skilled workforce (only 15% trained), and a fragmented supply chain.
How can India boost textile competitiveness?
Suggestions include creating SEZs with worker housing, negotiating EU FTA for zero duty, and maintaining a stable real exchange rate.
Key Terms
- Real exchange rate — The inflation-adjusted value of a currency affecting export competitiveness.
- SEZ (Special Economic Zone) — A designated area with simplified regulations to boost manufacturing and exports.
- PM Mitra Park — A government initiative to integrate the textile supply chain in dedicated parks.
- Industry 4.0 — Use of IoT and AI to reduce operational wastage in textile manufacturing by 10-15%.