The Twin Engines of Growth

The Twin Engines of Growth

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With a 4.5 per cent share of global trade, India is the sixth-largest exporter of textile & apparels (T&A) globally, contributing 8.21 per cent to the nation’s total exports in 2023-24. However, the Indian textile industry has faced challenges in recent years, with export growth declining last fiscal year despite steady domestic demand. Only in the current fiscal year has there been a revival, driven by destocking by buyers in the US and EU (which together account for 47 per cent of India’s T&A exports), as well as geopolitical factors affecting competitors like Bangladesh. The spinning sector has experienced underutilisation, while home textiles have shown steady export demand. The textile machinery segment, closely tied to the industry’s performance, has faced uneven demand, with spinning machinery struggling while weaving, knitting, and processing machinery investments have risen.

With a renewed growth trajectory, the Indian textile sector aims to become a $350 billion market, including $100 billion in exports, by 2030. However, significant structural issues, such as fragmentation among smaller players, rising operational costs, fluctuating taxes, and competition from cost-efficient countries like China and Bangladesh, hinder this goal. Additionally, increasing global sustainability and compliance requirements pose challenges for smaller manufacturers.

To drive growth, India must invest in modern production infrastructure and embrace advanced technologies. Automation, AI-driven production, and smart textiles development will enhance efficiency and product quality. The industry must also prioritise sustainability, as global consumers and retailers increasingly demand environmentally responsible supply chains. India’s strengths in organic and natural textiles position it well for the shift towards sustainable and eco-friendly products.

Government initiatives such as the PM Mitra Scheme are establishing integrated manufacturing hubs to boost productivity and global competitiveness. The Production Linked Incentive (PLI) scheme is providing a much-needed push for technical textiles and attracting foreign direct investment. Additionally, skill development programmes are bridging traditional craftsmanship with modern technological advancements, enhancing the workforce’s capabilities.

Environmental sustainability is critical for the textile industry’s future. According to the World Bank, textile dyeing and treatment contribute nearly 20 per cent of global industrial water pollution. Water-intensive processes result in massive wastage—up to 200 tonnes per tonne of finished fabric—while chemical use and high energy consumption further exacerbate ecological damage. The industry must adopt renewable energy, reduce water usage, and embrace circular economy principles to minimise waste.

India’s Kasturi cotton is emerging as a symbol of quality and sustainability in the textile industry, strengthening global partnerships. Events like Bharat Tex 2025 are playing a crucial role in showcasing India’s sustainable textile offerings to international buyers.

India’s textile sector is at a crossroads. To maintain its leadership in the global market, it must embrace technological advancements and sustainable practices. With proactive policies, strategic investments, and industry-wide commitment, India can solidify its position as a global textile powerhouse while ensuring long-term economic and environmental sustainability.

In this Annual Edition of The Indian Textile Journal (ITJ), with the theme of “The Rise of Econology”, over 20 industry leaders share insights on how the Indian textile industry can integrate sustainability and technology to drive transformative and long-term growth while expanding India’s presence in the global T&A market. By combining environmental responsibility with technological advancements through strategic governance and industrial adaptation, India’s textile sector can position itself as a key driver of both economic and ecological progress worldwide.

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