Global Impact of India’s Textiles
As global demand shifts towards eco-friendly and high-performance textiles, R&D is crucial in helping Indian manufacturers stay ahead of market trends, explains Robert P Antoshak.
India’s textile and apparel industry is prominent globally, shaped by centuries of tradition, economic strength, technological evolution, and competitive dynamics. The industry is vast, with its roots in both ancient handloom craftsmanship and modern manufacturing technologies. As the country aims to cement its leadership in textiles further, it is essential to understand the sector’s contributions, current challenges, and the roadmap for future growth. To fully appreciate the potential of India’s textile industry, we must examine its economic impact, evolving technology, international competitiveness, and government initiatives while considering the challenges ahead.
A strong historical dependence on cotton
India has historically been known for its reliance on cotton production. From the time of ancient civilisations, India has been a leader in cotton-based textiles, exporting goods across the globe. Today, the cotton sector continues to dominate, but there’s a growing realisation that diversification into synthetic fibres is crucial for long-term competitiveness.
In contrast, China has aggressively embraced synthetic fibres, positioning itself as the world’s largest producer of synthetic and cotton textiles. This shift allowed China to dominate global textile exports, and India risks falling further behind if it does not adapt. The future of India’s textile industry hinges on finding a balance between maintaining its strong cotton tradition and expanding its synthetic fibre production. The Chinese experience offers valuable lessons in how diversification can strengthen the sector.
In addition to fibre composition, India’s cut-and-sew industry is also falling behind regional competitors like Bangladesh and Vietnam. These countries have developed agile production networks and lower labour costs, making them attractive for global apparel sourcing. With its large workforce and textile heritage, India has the potential to rival these nations but must ramp up its efforts to compete effectively in the global market.
Textiles: A pillar of the Indian economy
India’s textile industry is a critical driver of its economy. It contributes approximately 2.3 per cent to the country’s GDP and employs more than 45 million people, with an additional 55 million indirectly engaged through associated industries. The sector is also a key source of foreign exchange, contributing 15 per cent of total exports.
Beyond its economic contributions, India’s textile industry plays a unique social role. It employs a significant portion of rural populations, especially women, offering livelihood opportunities in some of the country’s most underdeveloped areas. In regions where traditional handloom practices are still prevalent, the textile industry is vital in preserving cultural heritage while fueling local economies.
The sector’s diverse offerings, ranging from handmade fabrics to modern synthetic and technical textiles, allow India to compete across different global market segments. This diversity drives economic growth and fosters innovation and entrepreneurship within the industry.
Technological advancements: Driving competitiveness
Over the past few decades, technological integration has transformed India’s textile industry. Automation, computer-aided design (CAD), and advanced machinery have helped manufacturers boost efficiency, reduce costs, and improve the precision and quality of textiles and garments. These advancements have been instrumental in helping India maintain a competitive edge in the global market.
India’s entry into the technical textiles market, which is expected to grow rapidly, has been significant in recent years. Technical textiles include specialised products designed for functional applications across industries such as healthcare, automotive, and agriculture. India’s growing expertise in this sector marks a shift towards higher-value production, moving beyond traditional textiles to more advanced and diversified product offerings.
Adopting these technologies has positioned India as a competitive player, but there is still a long way to go. To fully capitalise on emerging opportunities, Indian manufacturers must continue investing in new technologies that improve efficiency and reduce environmental impact, especially in an era of rising global sustainability demands.
Global competitiveness: More than just cost leadership
India has established itself as a central player in the global textile market. International brands and retailers rely on Indian suppliers for a wide range of products, from high-quality cotton fabrics to mass-produced garments. One of India’s main strengths is its ability to produce a wide variety of textiles at competitive prices.
However, global competitiveness is more than just about low-cost production. Staying ahead of trends is critical with the rise of fast fashion and ever-evolving consumer tastes. India must focus on strengthening its design capabilities, understanding global fashion trends, and creating products that meet the diverse needs of global consumers. Moreover, Indian manufacturers must be agile and responsive to changes in consumer demand, especially in a world where e-commerce is driving rapid shifts in buying behaviour.
Government support and initiatives: Facilitating growth
The Indian government has been proactive in supporting the textile industry through various initiatives to modernise infrastructure and improve global competitiveness. One of the most prominent programs is the Technology Upgradation Fund Scheme (TUFS), which financially supports manufacturers in upgrading their equipment and processes. This initiative has been crucial in encouraging investment in modern machinery and improving productivity and product quality.
In addition to TUFS, the government has established textile parks to encourage the clustering of production units. These parks help streamline operations and reduce costs by providing shared infrastructure and resources. This model has proven successful in other countries, and India’s adoption of this approach is expected to improve efficiency in the textile manufacturing process.
The Production Linked Incentive (PLI) scheme is another essential government initiative that offers financial incentives to companies that invest in high-value sectors like technical textiles and man-made fibres. This scheme is intended to attract investment in these emerging areas, which are expected to drive India’s textile industry’s next growth phase.
Fashion and retail: Catalysing demand
India’s booming fashion and retail sectors have significantly impacted demand for textile products. Both domestic and international fashion brands are tapping into India’s growing consumer market, and the textile industry has responded by producing a wide variety of products catering to different price segments.
E-commerce has also played a pivotal role in the expansion of the textile industry. With online shopping becoming more prevalent, Indian manufacturers have been able to reach a broader customer base, both domestically and internationally. This shift has significantly benefited small and medium enterprises (SMEs), which can now sell their products directly to consumers without relying on traditional retail channels.
Embracing sustainability: A strategic imperative
Sustainability has become a critical concern for the global textile industry, and India is no exception. Manufacturers are increasingly adopting eco-friendly practices, such as using sustainable materials, reducing water and energy consumption, and implementing ethical labour practices. These efforts are driven by consumer demand and regulatory pressures as global buyers prioritise sustainable sourcing.
While India’s textile industry still relies heavily on fossil fuels for energy, a growing push is towards more sustainable practices. For instance, many companies are investing in renewable energy sources, such as solar power, and adopting more efficient manufacturing processes to reduce their carbon footprint. The industry’s efforts to improve sustainability will be critical in maintaining its global reputation and meeting the expectations of environmentally conscious consumers.
Innovating for the future: The role of research and development
Research and Development (R&D) is essential for India’s long-term competitiveness in the textile industry. By fostering innovation, R&D enables the development of advanced products like technical textiles, functional fabrics, and sustainable materials. As global demand shifts towards eco-friendly and high-performance textiles, R&D is crucial in helping Indian manufacturers stay ahead of market trends.
Moreover, R&D efforts focused on sustainability can help reduce the industry’s environmental impact. For example, research into energy-efficient production processes and the development of biodegradable materials can help address global sustainability challenges. Additionally, R&D can improve productivity and reduce costs, essential for maintaining competitiveness in a price-sensitive market.
Skill development and capacity building: Strengthening the workforce
The future of India’s textile industry will also depend on its ability to develop a skilled workforce. Establishing specialised training institutes focused on weaving, dyeing, and garment production is crucial. Upgrading existing institutions to offer modern courses in advanced textile technologies, such as automation and digital printing, can help bridge the skill gap.
Government initiatives should focus on job-oriented training programs and apprenticeships, especially in rural areas. Tailored programs for women and marginalised communities can further enhance inclusivity in the workforce.
Challenges and the road ahead
Despite its successes, India’s textile industry faces several ongoing challenges. Rising raw material costs, volatility in cotton prices, and competition from other low-cost manufacturing hubs like Bangladesh and Vietnam exert pressure on the sector. Furthermore, the lack of technological upgradation, shortage of skilled labour, and infrastructure deficiencies hinder the industry’s growth.
To address these challenges, India must continue to invest in technology, skill development, and sustainability. Innovation and strategic collaborations between government, industry players, and research institutions will be critical.
In short, India’s textile industry stands at a pivotal moment. With the proper focus on modernisation, sustainability, and capacity building, the sector has the potential to strengthen its global position and drive economic growth for years to come.
About the author:
Robert P Antoshak is a Partner at Gherzi Textil Organisation. He is also a consultant to the Global fibre, textile and apparel industries.
