Examine the major challenges hindering the Indian textile industry from achieving its full potential in the global value chain.
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.
Jayant Garg
Land Reforms, Liberalization, Infrastructure & Investment
Manufacturing and Industrial Sector
Textile Industry
277
Total words
1
Paragraphs
analytical
Tone