India’s Textile Industry Faces Challenges, Government Pushes Reforms

Why in the News?

  • India’s textile industry is struggling due to declining exports, rising production costs, and competition from China.
  • The government has introduced PLI schemes, mega textile parks, and import duty reductions to boost competitiveness.
  • Focus on sustainability and innovation for long-term growth.

India’s Textile Industry Faces Challenges, Government Pushes Reforms

Challenges Facing India’s Textile Industry:

  • The Indian textile industry is struggling due to stagnant demand, rising costs, and global competition.
  • Cotton supply is fragmented, affecting production efficiency.
  • High dependence on imports for raw materials like polyester and specialty fibers.
  • Lack of modern infrastructure and outdated technology limit competitiveness.
  • Exports have declined, with apparel production falling by 12%.

Government Efforts to Boost Competitiveness

  • PLI Scheme (Production-Linked Incentive) to boost textile manufacturing and exports.
  • Mega Textile Parks initiative to create integrated manufacturing hubs.
  • Reduction in import duties on raw materials to ease production costs.
  • Promotion of technical textiles and sustainable practices for global competitiveness.
  • Focus on R&D and skill development to improve productivity and innovation.

Future Outlook and Sustainability

  • India aims to compete with China in textile exports through modernization.
  • Sustainability initiatives like eco-friendly fabrics and reduced carbon footprint gaining importance.
  • Strengthening domestic production of synthetic fibers to reduce import reliance.
  • Expanding trade agreements and market access to boost exports.
  • Need for policy consistency and better enforcement to ensure long-term industry growth.

Government Initiatives for Textile Industry Growth:

  • Amended Technology Upgradation Fund Scheme (ATUFS): Launched in 2016 to provide Capital Investment Subsidy (CIS) under Make in India with Zero Effect, Zero Defect manufacturing.
  • SAMARTH: Aims to build skilled manpower in the textile sector under the Skill India initiative.
  • National Technical Textile Mission: Approved for 2020-24 to boost technical textiles in strategic sectors.
  • PLI Scheme: Promotes Manmade Fibre (MMF) apparel, fabrics, and technical textiles.
  • PM-MITRA: Establishing 7 mega textile parks with world-class infrastructure.
  • SITP: Supports textile industry clusters with shared facilities.
  • ISDS: Enhances skill development and employability in the textile sector.