Learning from the Peers
By learning from the experiences of China, Vietnam, and Bangladesh, and adapting these strategies to the Indian context, India can create a competitive, sustainable, and innovative textile ecosystem, says Manmohan Parkash.
The global textile industry is one of the most dynamic sectors in the world, with a rich history of growth, innovation, and transformation. As India continues to make its mark on the global stage, it is well-positioned to emerge as the dominant player in the textile sector, following in the footsteps of countries like China, Vietnam, and Bangladesh, which have successfully built robust textile industries over the years. By playing its cards right, India has the potential to not only expand its textile exports but to become the global market leader.
China, Vietnam, and Bangladesh have all undergone remarkable transformations in their textile sectors, creating valuable lessons for India. These countries have strategically aligned their policies, infrastructure, and business models to propel their textile industries to global prominence. India’s textile sector, which currently contributes about $200 billion to the economy and employs millions of workers, has the foundation to scale much higher. However, to leapfrog its competitors and emerge as the leader, India must learn from the successful strategies of these countries.
Infrastructure development
China’s meteoric rise as the world’s largest textile producer and exporter is largely attributed to its robust infrastructure, particularly in terms of industrial parks, transportation networks, and technology adoption. Vietnam and Bangladesh have similarly invested heavily in dedicated textile zones, with modern facilities that allow for a more streamlined, cost-effective production process.
India can replicate this success by building textile hubs equipped with state-of-the-art infrastructure that minimises inefficiencies and lowers production costs. The government should incentivise the development of textile industrial parks with comprehensive amenities such as logistics, power, water, and labour access, along with digitised management systems that facilitate smooth business operations. By improving supply chain efficiency, India will not only increase its production capacity but will also enhance its competitiveness in the global market.
Focus on sustainability
India should ramp up efforts to achieve sustainability certifications such as GOTS, OEKO-TEX, and Fair Trade, which will build credibility in international markets.
Sustainability is a fundamental requirement in the global textile market. Consumers worldwide are increasingly seeking ethically produced, eco-friendly, and sustainable fashion. China, Vietnam, and Bangladesh have already made strides toward integrating sustainability into their textile sectors, but India has the opportunity to take this to the next level.
India should focus on building a green textile ecosystem by adopting waterless dyeing techniques, utilising recycled materials, and improving energy efficiency in factories. This not only supports global sustainability goals but also appeals to markets, particularly in Europe and North America, where eco-conscious consumers are demanding greener products. India should also ramp up efforts to achieve sustainability certifications such as GOTS, OEKO-TEX, and Fair Trade, which will build credibility in international markets.
By positioning itself as a leader in sustainable textile production, India can attract investment from global buyers who prioritise environmental responsibility in their supply chains. This would differentiate Indian textiles in a saturated market and provide long-term growth potential.
Government support and policy incentives
The success stories of China, Vietnam, and Bangladesh are deeply rooted in their governments’ active role in facilitating the growth of the textile sector. Vietnam, for instance, has benefited from favourable policies that support foreign direct investment (FDI), tax incentives, and trade agreements, helping its textile exports flourish. Similarly, Bangladesh has benefited from duty-free access to the European market and extensive government incentives for manufacturers.
Indian government must follow suit by providing robust policy support, including tax breaks, subsidies, and low-interest loans for textile exporters. The PLI (Production Linked Incentive) scheme has already been a step in the right direction, but India can enhance this framework by introducing more comprehensive trade policies, financial guarantees, and export incentives to boost manufacturing and export activities. Additionally, simplifying the bureaucratic process around exports, including customs clearance and trade logistics, will reduce transaction costs and increase efficiency.
Furthermore, the Indian government should pursue more free trade agreements (FTAs) with key global markets, particularly in Europe, North America, and ASEAN, to reduce tariffs and make Indian textiles more attractive to international buyers.
Workforce skill development and innovation
China and Vietnam have built world-class textile industries partly due to their investment in workforce training and technological innovation. The textile sectors in these countries benefit from a skilled labour force, empowered by vocational training programs that align workers’ skills with modern industry needs. India, with its immense human resource potential, must focus on skilling its workforce to meet the demands of advanced textile technologies.
India should partner with technical institutions and textile associations to offer certification programs in areas such as sustainable manufacturing, smart textiles, fashion design, and advanced dyeing techniques. By empowering the next generation of workers, India can maintain a competitive edge by ensuring that its workforce remains at the cutting edge of innovation.
Moreover, investment in R&D for high-tech textiles and smart fabrics will help India diversify its offerings. This would include textiles used in medical applications, automotive, and construction, tapping into high-value markets that go beyond traditional fashion and garments.
Expanding global market access
India has a significant market share in traditional textile exports, but to become the world’s leader, it must increase its presence in emerging markets while simultaneously reinforcing its standing in established markets. The textile industry must actively seek access to new markets in Africa, Latin America, and Southeast Asia, where demand for affordable and sustainable textiles is growing rapidly.
In addition to traditional exports, India can boost its presence in global retail markets by embracing e-commerce platforms. With the rise of digital shopping, India’s textile exporters can leverage platforms like Alibaba, Amazon, and Etsy to reach consumers worldwide, bypassing traditional supply chain bottlenecks. This digital shift also offers the chance to build a global “Brand India” for textiles, focusing on quality, ethics, and sustainability.
Encouraging SMEs and innovation
Small and medium enterprises (SMEs) form the backbone of India’s textile industry. However, these SMEs often face challenges in accessing capital, modernising machinery, and scaling operations. Drawing inspiration from Bangladesh’s success in developing its SME sector, India must implement policies that provide financing support, capacity-building programs, and market access for small textile producers.
In addition to SME support, fostering textile innovation hubs where large companies, startups, and researchers collaborate to develop cutting-edge products and technologies will create a fertile ground for growth and diversification in the textile industry.
In conclusion, India’s textile industry has immense potential to be the global market leader in textiles. By learning from the experiences of China, Vietnam, and Bangladesh, and adapting these strategies to the Indian context, India can create a competitive, sustainable, and innovative textile ecosystem. Key to this ambition will be strengthening infrastructure, embracing sustainability, fostering government support, and developing a skilled workforce while expanding global market access.
India’s textile sector is poised to play a pivotal role in the global economy. By taking these steps, India can lead the world’s textile markets, setting new benchmarks for innovation, sustainability, and export performance.
About the author:
Manmohan Parkash is a former Senior Advisor, Office of the President, and Deputy Director General, South Asia, Asian Development Bank. He also worked as Country Director, Bangladesh (2017-2021). The views expressed are personal. He can be reached at manmohanparkash@gmail.com
