JG

Jayant GargAIR 64· 2024

Question 4GS3GS3

Examine the major challenges hindering the Indian textile industry from achieving its full potential in the global value chain.

Open scan (p.12)

Main Body

India's textile sector contribute 2% of GDP and 12% of total manufacturing gross value added, however India's share in textile exports globally has halved over period. Major challenges binding India's textile industry: 1) Competition: Indian textile facing competition from China, Bangladesh, Vietnam, India - Tariff - Indian textile owing tariff in Europe and USA compared to Vietnam and Bangladesh 2) Tariff - Indian textile owing tariff in Europe and USA compared to Vietnam and Bangladesh. 3) Focus on cotton textile: India's cotton product with falling. Before net importer of cotton. 4) Local textile production capacity and skills: Thin technical textile production 5) Low mechanization and high tariff in domestic textile sector. 6) Poor infrastructure: Turnaround time on port and high logistics cost [3% of GDP] Measures taken to overcome: 1) Focus on textile in FTA's Eco India-UK FTA 2) Budget FY26: Incentivised scheme for extra long cotton production 3) Duty free import for machine for textile sector 4) RLT scheme for technical textile production To achieve aim of farm-to-fashion to foreign, India need to improve technology, productivity and market linkages in textile sector.

i) Lack of textile production capacity and skills: Thin technical textile production 5) Low mechanization and high tariff in domestic textile sector. 6) Poor infrastructure: Turnaround time on port and high logistics cost [3% of GDP] Measures taken to overcome: 1) Focus on textile in FTA's Eco India-UK FTA 2) Budget FY26: Incentivised scheme for extra long cotton production 3) Duty free import for machine for textile sector 4) RLT scheme for technical textile production To achieve aim of farm-to-fashion to foreign, India need to improve technology, productivity and market linkages in textile sector.

277 words1 paragraphs

Topper

Jayant Garg

AIR 642024

Subject & Paper

GS3GS3

Topic

Land Reforms, Liberalization, Infrastructure & Investment

Manufacturing and Industrial Sector

Textile Industry

Writing Stats

277

Total words

1

Paragraphs

analytical

Tone