11 January 2024, Mumbai
India's once-thriving textile and apparel industry is tangled in a knot of challenges, stalling its progress despite promising growth forecasts.
We unravel the threads of this dilemma, examining the barriers to success and potential paths to a brighter future.
The Growth Gap: Global apparel is set to reach $1.7 trillion by 2025, yet India's share remains stagnant. Projected exports of $40 billion by 2022-23 fell short, hovering around $24 billion. This stark gap between expectations and reality exposes the sector's hurdles.
Metrics:
| Metric | 2021 | 2022 | 23 (Estimate) |
|---|---|---|---|
| Domestic Textile Production (USD Billion) | 45 | 48 | 52 |
| Apparel Exports (USD Billion) | 18 | 21 | 24 |
| Textile and Apparel Employment (Million) | 45 | 47 | 50 |
| Investment in Sustainable Textile Projects (USD Million) | 120 | 150 | 180 |
Cost Concerns Constrict: High input costs squeeze the industry's breath. Expensive cotton, complex taxes, and logistical woes inflate production. Indian mills pay 20-25% more per kg of cotton than global standards, struggling to compete with lower-cost countries like Bangladesh and Vietnam.
Import Tsunami Erodes Profits: A surge of cheaper ready-made garment imports swamps the market. In 2022–23, Indian apparel imports doubled from 2019–20 levels, drowning out local producers' profits and hindering job creation.
Environmental Unraveling: Weaving in environmental concerns paints a complex picture. Water pollution from dyeing, inefficient energy use, and mountains of textile waste demand attention. The industry needs a greener shift, embracing practices like renewable energy.
India's textile tale needs a rewrite. Overcoming cost barriers, tackling import waves, and embracing green practices are crucial threads to reweave the sector's success. Can India untangle these challenges and claim its rightful place in the global fashion tapestry?
Only time will tell.
