Focus on core competencies
At the recently concluded Bharat Tex 2025, Prime Minister Narendra Modi emphasised the critical role of the textile industry in India’s journey to becoming a developed country by 2047. He urged industry stakeholders to target a 17 per cent growth rate, a significant jump from the current 7 per cent, to accelerate the sector’s contribution to the economy. India is the sixth-largest exporter of textiles and apparel, with exports valued at $ 36 billion. The country has set an ambitious target of $104 billion by 2030. At the heart of this expansion is cotton, which accounts for nearly 80 per cent of India’s textile exports.
India’s cotton productivity remains a concern, with yields significantly lower than global competitors. For example, Brazil produces 20 quintals per acre, and China achieves 15 quintals per acre, while India lags behind. Recognising this, the industry has been advocating for a Cotton Technology Mission to introduce high-yield seed technology, best agronomy practices, and branding for Indian cotton.
The Union Budget 2025-26 took a crucial step by allocating Rs 6 billion for the Cotton Productivity Mission focusing on increasing cotton productivity and improving fibre quality.
The mission will focus on promoting Extra-Long Staple (ELS) cotton to boost global competitiveness, adopting scientific agronomy practices to increase yield, and encouraging clean cotton production to reduce contamination and improve quality.
The Southern India Mills’ Association (SIMA) has been vocal about India’s potential in ELS cotton production. Despite the domestic industry’s demand for 30 lakh bales, India currently imports 12 lakh bales of ELS cotton, particularly 32.5 mm and above fiber length. SIMA estimates that the ELS cotton value chain is worth Rs 600 billion annually. Value addition in ELS cotton textiles is nearly 10 times the raw material cost, presenting a massive export potential if India can increase domestic production. To address this, the government undertook pilot projects covering 15,000 hectares across major cotton-producing states with a focus on high-density planting and ELS cotton yield improvements. Early results have shown a potential 30-50 per cent increase in productivity.
In October 2023, on World Cotton Day, the government launched Kasturi Cotton Bharat to enhance India’s credibility in global cotton markets by establishing a strong Indian cotton brand. Now, the government plans to expand Kasturi Cotton varieties beyond 29 mm and 30 mm staple lengths to include ELS cotton with fiber lengths of 31 mm and beyond.
Global retailers are increasing orders for Indian cotton garments due to rising labour costs in Vietnam, US tariff hikes on China, and political instability in Bangladesh, according to a Systematix Institutional Equities Research report. India witnessed a 20 per cent year-on-year growth in cotton garment exports during April-December 2024. However, capacity constraints among Indian garment manufacturers may limit the full potential of this demand surge.
Globally, man-made fiber (MMF) textiles dominate textile and apparel sales. While India must enhance its MMF exports, it should not lose focus on cotton-based textiles, which have been its strength for years. With growing demand for sustainable and natural fibers, India has the opportunity to establish itself as a reliable supplier of high-quality cotton textiles, particularly premium products, to achieve higher profit margins.
