India targets $100 bn textile exports by 2030 with six key reforms

With global supply chains recalibrating due to geopolitical disruptions, and India’s domestic market projected to reach $350 billion by 2030, there is a strategic window to push exports to $100 billion over the next five years, says Kanishk Maheshwari.

In what could mark a defining chapter in India’s industrial resurgence, the domestic textile industry is laying the groundwork for a transformative leap—targeting $100 billion in textile exports by 2030. With global market dynamics shifting, India finds itself at the cusp of an unprecedented growth opportunity, provided it can navigate longstanding structural bottlenecks with targeted reform.

Currently the world’s second-largest textile producer and fifth-largest exporter, India’s textile sector contributes over 2.3 per cent to GDP, 13 per cent to industrial output, and 10.5 per cent to exports. But despite this scale, India commands a very less share of global textile exports, trailing far behind China’s overwhelming ~48 per cent share.

Rising trade tensions, shifting supply chains, and the evolving geopolitical landscape have disrupted textile exports from key players like China and Bangladesh, creating a strategic gap in the global value chain, India stands out as a sustainable and reliable alternative. This is a timely opportunity for India to position itself as the preferred sourcing destination for global brands under the “China Plus One” strategy.

India currently holds a 6–9 per cent global market share, with readymade garments and home textiles comprising 75 per cent of textile exports. A modest 10–12 per cent shift in orders from Bangladesh alone could translate into a $2.4 billion annual export boost, as per our analysis.  

Reaching the $100 billion textile export milestone will require significant strategic planning and, as the journey is fraught with structural challenges that must be systematically addressed. India’s production cost per garment remains among the highest in Asia, largely due to labour inefficiencies and fragmented supply chains. Labour costs are nearly 70 per cent higher than in Bangladesh, owing to a higher Standard Allowed Minute (SAM) rate—Rs 5–6 in India vs Rs 3 in Bangladesh.

Moreover, only 15 per cent of the textile workforce has formal training, compared to over 70 per cent in advanced economies. This skills gap, coupled with inadequate multimodal logistics infrastructure, leads to logistics costs at 14 per cent of GDP, far above the global benchmark of 8–10 per cent.

Primus Partners recent report on “Roadmap for $100 billion Exports in 5 years” outlines Six Strategic Recommendations aimed at enabling India to leverage the existing capacities and ongoing global reconfiguration as a springboard for growth to pivot the sector towards scale and global leadership:

Signing Free Trade Agreements (FTAs) with US and EU will boost sector’s competitiveness: With countries like Sri Lanka enjoying duty-free access to EU markets, Indian textiles suffer from tariff disadvantages. Expediting FTAs with theUS and EU would lower tariff barriers on Indian textile exports, enhancing their price competitiveness in global markets.

Industry 4.0 Integration will lead to reduction in operational waste: The adoption of Industry 4.0 technologies is reshaping India’s textile sector by enhancing efficiency, intelligence, and responsiveness to global market needs. Advanced solutions such as IoT-enabled looms, AI-based quality checks, and automated dyeing are driving measurable gains—reducing operational waste by 15 per cent, machine downtime by 20 per cent, and electricity costs by up to 15 per cent. This digital shift is also redefining workforce roles, transitioning from manual tasks to data-driven decision-making through dashboards and predictive analytics.

Operational subsidies to enhance textile competitiveness: Operational subsidies can play a pivotal role in enhancing the global competitiveness of India’s textile sector. By lowering key input costs—including energy, logistics, and labour—they enable manufacturers to produce more cost-efficient goods, thereby strengthening their position in international markets. States like Madhya Pradesh are already offering up to Rs 6,000 per employee in wage reimbursements. Scaling such employment-linked operational subsidies nationally could reduce input costs and spur investment.

Specialised skill development hubs will raise skilled workforce share to 50 per cent: The Indian textile industry remains heavily dependent on informal, on-the-job learning, with limited formal training—leading to an estimated 20–30 per cent productivity loss. To bridge this gap and raise the share of formally trained workers to 50 per cent, establishing dedicated training centres in key textile hubs, especially in Tier 2 and Tier 3 cities, is essential to aligning India with global norms and enhancing quality assurance for exports.

Moving from small to scalable by transforming Textile MSMEs to global giants: The MSMEs form the backbone of the industry, contributing significantly to employment, regional development, and export value. However, they often face barriers related to limited access to finance, technology, skilled manpower, and global market linkages. Aggregating textile MSMEs into cooperative clusters, akin to FPOs in agriculture, will help them scale up, access credit, adopt new technologies, and improve bargaining power with international buyers.

Driving growth and exports through technical textiles: With the global technical textile market poised to hit $274 billion by 2027, India’s share could reach $39 billion. There is a need to launch State Missions for Technical Textiles on the lines of National Technical Textiles Mission that can drive innovation in sectors like medical, geo, and protective textiles.

The coming decade offers an unprecedented opportunity. With global supply chains recalibrating due to geopolitical disruptions, and India’s domestic market projected to reach $350 billion by 2030, there is a strategic window to push exports to $100 billion over the next five years. However, to realise this ambition, India must overcome structural challenges and strategically harness emerging trends that are reshaping the global textile industry.

About the author:

Kanishk Maheshwari, Co-Founder & MD, Primus Partners, has over 15 years of work experience in the areas of industrial promotion, ease of doing business, MSME development, investment realisation, process re-engineering, Developing strategic quality frameworks, and Policy Advocacy in leading large-scale, multi-sectoral government engagements across India. He has also worked with multilateral organisations such as DFID, The World Bank, to various economic and development related projects in India.