The Indian textile industry has hit roadblocks on exports. The most likely reason for this may be the industry’s focus on select markets/zones — where it has been unable to compete on the price front with FTA countries — rising manufacturing cost, inability to compete with low-cost destinations, or limited exposure to blended apparels.

This pressure on the price front has pushed the apparel sector to concentrate on retaining business rather than on growth or exploring new markets. The country’s textile and apparel sector has found it difficult to compete with Vietnam and China, as manmade fiber is expensive in India and the industry is ill-equipped to shift to blends and still relies on cotton.

Growth in the apparel sector’s exports will solve India’s twin challenges of job creation and greater participation of women in the textile industry. A fiber-neutral policy, single lower GST rate for all textile products, a scheme to promote large-scale apparel manufacture, providing more support to small and medium exporters, and speeding up India’s foreign trade agreements would go a long way in boosting apparel exports. Also highlighting the concept of the green process (zero-liquid discharge in processing) and green factories across the country would help in branding. A Cotton Technology Mission would help curb the volatility of cotton prices, which are currently at the highest level.