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

Indian textile industry has a huge potential to integrate into global trade chains, and therefore given due importance in Budget 2025-25. Major challenges of textile industry: 1. Imposition of high tariffs on import of raw materials - Viscose fibres face large tariffs. 2. Dependence on big, major players in the industry - Aditya Birla group. 3. Limited scale of MSMEs due to tough competition. 4. Lack of technology integration - Automation and Robotics. 5. Reduced exploration of new textiles - LED clothes. 6. Dependence on government support and subsidies. 7. Defence store demands unmet - Kaveri jackets. 8. Multipurpose textile to be researched and explored. R&D is 0.55% of GDP.

Steps taken to counter these: 1. Governmental policy support through National Textiles Mission. 2. Employment - Padded Incentive Scheme ETC. 3. FDI under automatic route. 4. Research in non-textiles and multipurpose fabrics. 5. Coping into luxury segment. Hence, textile industry holds immense potential to achieve the target of a $5 trillion economy and increase exports while empowering inclusive growth.