India’s Textile Sector: Strengths, Challenges, and the Road Ahead

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The Indian government has recently stepped up support for the textile sector – launching a Production-Linked Incentive (PLI) scheme and planning new Mega Textile Parks. These efforts aim to capitalize on India’s status as a leading producer of fibre (cotton, jute, etc.). However, even as India leads in raw fibre production, its textile industry’s growth and export figures remain below potential. Countries like China, Bangladesh, and Vietnam have surged ahead in textile and apparel exports, leveraging factors that India is struggling with.
What is holding back India’s textile sector? Several challenges persist, ranging from outdated technology and high production costs to policy hurdles, labour skill gaps, and sustainability issues. The following sections delve into these key issues and possible strategies to overcome them.