India can be the world leader in textiles. Here’s how
By yash chouhan 2025-03-01 12:24:10
India might lead the world in textile production. Here's how
If India is to become a developed country by 2047, it must prioritise job creation. The textile and apparel industry is the second-largest employer in India after agriculture, providing direct employment to 45 million people. The sector is expected to grow at an annual growth rate of 10 per cent and become a USD 250 billion market by 2030, adding millions more jobs. If our exports grow from the current USD 45 billion to the targeted USD 100 billion, and if the economy grows at 6-7 per cent annually, the textile industry can add one million jobs every year from now to 2030 - 10 per cent of the country's need.
The government is thinking ahead in supporting the industry. It has approved various schemes with an outlay of several thousand crores that stimulate the sector – such as the Pradhan Mantri Mega Integrated Textile Region and Apparel (PM MITRA) Parks, the Production Linked Incentive (PLI) scheme and the Remission of State and Central Taxes and Duties (RoSCTL) scheme.
The USD 100 billion Indian textile market presents a huge domestic opportunity. An emerging middle class is driving demand and this trend is further amplified by Gen Z. The mainstreaming of e-commerce and the emergence of instant commerce have made apparel and fashion easier for people to access. While there is a lull during a crisis like Covid or a recession, Indians continue to have a healthy consumption appetite.
With so much work to do, how can we ensure labour efficiency and thus create more jobs and increase market share? India suffers a 15-20 per cent cost loss compared to competing countries like Bangladesh and Vietnam. A major reason for this is low efficiency in the labour-intensive apparel manufacturing process. How can we address this?
