Exploring Prospects and Challenges in the Indian Textile Industry

EXPLORING PROSPECTS AND CHALLENGES IN THE INDIAN TEXTILE INDUSTRY ABSTRACT The Indian textile sector stands as a cornerstone of the Indian economy, contributing approximately 7% of the total GDP and over 12% of the manufacturing sector, with export earnings exceeding 13%. It ranks as the second-largest employer in India, following the agriculture sector. Globally, India holds a significant position, representing 5. 2% of textile exports and 3. 7% of apparel exports. Directly, it employs around 45 million individuals, with another 60 million engaged indirectly through associated activities. Projections indicate promising growth, with the domestic home textile market expected to achieve a Compound Annual Growth Rate (CAGR) of 4%, reaching 13 billion, and the technical textile market poised to grow at a CAGR of 10%, reaching 42 billion within the same timeframe. India secures the second position in textile exports, commanding a 7% share, and the sixth position in apparel exports with a 3% share globally. Post-COVID, there's been a noticeable surge in demand, amplified by government support through attractive schemes like Production Linked Incentive (PLI) and Mega Investment Textile Parks (MITRA). These initiatives aim to propel the sector towards surpassing the ambitious 250 billion target by 2025-26, as outlined in recent reports. The impending release of the new textile policy is anticipated to be a game-changer, yet a strategic roadmap is imperative to realize the industry's full potential and meet the set targets within the stipulated timeline.