During the Union Budget for 2025-26, Nirmala Sitharaman, Finance Minister, announced a 5-year mission to enhance cotton production, with a specific focus on extra-long staple (ELS) cotton. India heavily relies on imports for ELS cotton fibers, which are longer than 35mm and used in high-quality fabrics.
The mission will provide farmers with cutting-edge science and technology support to increase income and ensure a consistent supply of quality cotton, revitalizing India's traditional textile sector. This initiative comes as India faces challenges in the global textile market.
In September 2024, the World Bank reported that India's share of global exports in labor-intensive sectors, including apparel, leather, textiles, and footwear, has declined. Meanwhile, countries like Bangladesh, Vietnam, Poland, Germany, and France have increased their global export share in these job-creating sectors by up to 2 per cent between 2015 and 2022.
India's textile and garment exports have stagnated at around $35 billion, while Vietnam and Bangladesh have gained market share, aided by free trade agreements (FTAs) and Least Developed Country (LDC) status, which provide a 10-15 per cent duty concession in Western markets. By boosting domestic cotton production, particularly ELS cotton, India aims to improve its competitiveness in the global textile industry.
