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Vision 2030: Can India become a $100 billion textile and apparel exporter?

Vision 2030 Can India become a 100 billion textile and apparel exporter


India's ambitious plan to reach $100 billion in textile and apparel exports by   2030 faces challenges but holds promise. This includes $40 billion from apparel exports.

As per WTO 2023 statistics, India is the second-largest textile exporter globally (7.4 per cent market share) but the fifth-largest garment exporter (3.1 per cent market share. The status is that the garment exports have stagnated around $14-17 billion for the past five years, with a 10.2 per cent decline in FY 2023-24. However, the textile sector fared slightly better with a 12.5 per cent decline in exports in 2022.

Indeed, there are many challenges on way to achieving this goal.

Competitiveness: Countries like Bangladesh and Vietnam enjoy tariff advantages, making Indian exports less competitive.

Limited MMF production: India's strength lies in cotton, but it lags in man-made fibers, a growing segment.

Skill gaps and labor issues: Minimum wages are low and poorly enforced, impacting worker well-being and productivity. Additionally, there's a need for skill development in the workforce.

Disruptions: The COVID-19 pandemic disrupted supply chains, impacting the industry's recovery.

Government initiatives

The Indian government is implementing various schemes to boost the industry.

Production Linked Incentive (PLI) scheme: This scheme incentivizes production of man-made fibers and technical textiles.

PM Mega Integrated Textile Region and Apparel (PM MITRA) parks: These parks aim to create integrated textile manufacturing facilities with economies of scale.

Free Trade Agreements (FTAs): Recent FTAs with UAE and Australia and ongoing negotiations with UK and EU aim to reduce trade barriers and increase market access.

Rebate schemes: Extensions of schemes like RoSCTL provide financial benefits to garment and apparel exporters.

Table: Stats at a glance

Target: $100 billion in textile and apparel exports by 2030.

Current exports: $14.53 billion in garments and $19.4 billion in textiles (FY 2023-24).

Market share: 7.4 per cent in textiles (world's second largest), 3.1 per cent in garments (world's fifth largest).

Vision 2030 recognizes the growing demand for sustainable textiles. Initiatives include promoting recycling facilities to reduce waste; encouraging resource-efficient processes like zero liquid discharge and use of renewable energy; Promoting adherence to environmental, social, and governance best practices.

Industry leaders emphasize the need for automation and digitalization to improve efficiency; skill development to create a future-ready workforce; embracing global best practices to enhance competitiveness.

Achieving ‘Vision 2030’, a realistic goal

While the $100 billion target might be challenging, significant progress is certainly achievable.  The government's supportive measures, industry initiatives, and a focus on sustainability can propel India's textile and apparel sector forward.  Success will depend on effectively addressing competitiveness issues, upgrading infrastructure, and ensuring a skilled and fairly compensated workforce.  India's rich textile heritage, strong raw material base, and large workforce position it well to become a global leader but achieving Vision 2030 will require a concerted effort from all stakeholders.



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