India has officially formalized its participation in the BRICS Centre for Industrial Competencies (BCIC), a strategic move designed to modernize the nation’s textile and apparel manufacturing base. By signing a Trust Fund Agreement with the United Nations Industrial Development Organization (UNIDO) on February 4, 2026, the Department for Promotion of Industry and Internal Trade (DPIIT) has established a direct pipeline for technical exchange. This partnership arrives as the Indian textile sector, which contributes 2.3 per cent to national GDP and 12 per cent to export earnings, seeks to counter competition from regional peers through advanced automation and digital engineering.
National Productivity Council to spearhead apparel cluster upgrades
The National Productivity Council (NPC) has been designated as the domestic nodal agency to lead this technological transition. Under the BCIC framework, apparel clusters in Tier II and Tier III cities will gain access to ‘Factory of the Future’ methodologies, focusing on smart manufacturing and resource efficiency. This initiative dovetails with the recently announced Union Budget 2026-27, which allocated Rs 10,000 crore to an SME Growth Fund. By leveraging UNIDO’s technical oversight, Indian exporters aim to meet the stringent ESG (Environmental, Social, and Governance) and circularity standards currently being implemented in major European and North American markets.
Strategic supply chain resilience across BRICS networks
This membership provides Indian MSMEs - which employ over 45 million people - with a collaborative technology marketplace to share best practices with Brazil, Russia, China, and South Africa. As global brands seek to diversify production away from high-risk corridors, the BCIC framework offers a platform for Indian firms to integrate into more resilient, cross-border value chains. Industry leaders anticipate that the adoption of Industry 4.0 will stabilize input costs and improve manufacturing margins, which have faced pressure from volatile raw material prices and shifting global demand.
The NPC is an autonomous organization under the DPIIT, Ministry of Commerce & Industry, dedicated to enhancing India's industrial competitiveness. It provides consultancy and training in lean manufacturing, energy management, and digital transformation. The NPC is currently expanding its footprint into technical textile clusters to support India's Vision 2030 export goals of $250 billion.
