{"id":49440,"date":"2025-07-28T18:52:28","date_gmt":"2025-07-28T13:22:28","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=49440"},"modified":"2025-07-28T18:52:40","modified_gmt":"2025-07-28T13:22:40","slug":"textile-sector-in-india","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/28-07-2025\/textile-sector-in-india","title":{"rendered":"Textile Sector in India"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Industries<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>PM Modi in his Mann Ki Baat program, remarked that the <strong>textile sector has become a major strength of the country.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>He mentioned that over <strong>3,000 textile start-ups<\/strong> are now active in India, many of which are promoting India\u2019s handloom identity on a global scale.\n<ul class=\"wp-block-list\">\n<li>The Prime Minister pointed out that this year marks the <strong>10th anniversary of National Handloom Day.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Overview of India&#8217;s Textile Industry<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Contribution:<\/strong> The textile and apparel industry contributes <strong>2.3% to our GDP, 13% to industrial production, and 12% to exports.\u00a0<\/strong><\/li>\n\n\n\n<li><strong>Export Basket: <\/strong>India exported textile items worth US$ 34.4 billion in 2023-24, with apparel constituting 42%, followed by raw materials\/semi-finished materials at 34% and finished non-apparel goods at 30%.\u00a0<\/li>\n\n\n\n<li><strong>Employment:<\/strong> It is the <strong>second largest employment generator<\/strong>, after agriculture, with over 45 million people employed directly.\n<ul class=\"wp-block-list\">\n<li>Nearly 80% of its capacity is spread across Micro, Small and Medium Enterprises (MSME) clusters in the country.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Future Projections:<\/strong> Indian textile market currently<strong> ranks fifth globally<\/strong>, and the government is actively working to accelerate this growth to a rate of <strong>15-20% over the next five years.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges Faced by the Sector:<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Fragmented Structure: <\/strong>Predominantly unorganised and decentralised, especially in the powerloom and handloom sectors.<\/li>\n\n\n\n<li><strong>Outdated machinery in many units leads to: <\/strong>Low productivity, poor quality output and higher operational costs compared to global competitors (e.g., China, Bangladesh).<\/li>\n\n\n\n<li><strong>Inadequate Infrastructure:<\/strong> Poor logistics, power shortages, and high cost of electricity.<\/li>\n\n\n\n<li><strong>Environmental Concerns:<\/strong> Textile processing is water- and chemical-intensive.\n<ul class=\"wp-block-list\">\n<li>Non-compliance with environmental norms leads to factory closures and export bans.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Stiff Global Competition:<\/strong> Competes with low-cost producers like Bangladesh, Vietnam, and China.\n<ul class=\"wp-block-list\">\n<li>India\u2019s higher production and compliance costs reduce export competitiveness.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Fluctuating Export Demand: <\/strong>Trade barriers, global economic slowdown, and changing consumer preferences affect exports.\n<ul class=\"wp-block-list\">\n<li>Lack of Free Trade Agreements (FTAs) with key markets like the EU hampers growth.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Government Initiatives for the Growth of Textile Sector:\u00a0<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The Make in India initiative<\/strong> has catalyzed textile manufacturing and exports through key policy interventions, enhanced infrastructure, and incentives.\u00a0<\/li>\n\n\n\n<li><strong>Production Linked Incentive (PLI) Scheme for Textiles: <\/strong>To increase manufacturing in man-made fibre (MMF) and technical textiles.\n<ul class=\"wp-block-list\">\n<li>Financial incentives for large-scale textile manufacturers.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>PM MITRA (Mega Integrated Textile Region and Apparel) Parks: <\/strong>For developing integrated large scale and modern industrial infrastructure facilities for the total value-chain of the textile industry like spinning, weaving, processing, garmenting, textile manufacturing, processing &amp; textile machinery industry.\n<ul class=\"wp-block-list\">\n<li><strong>Current Status: <\/strong>A total of 7 Parks established in states of Gujarat, Maharashtra, Madhya Pradesh, Tamil Nadu, Karnataka, Uttar Pradesh, and Telangana.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Amended Technology Upgradation Fund Scheme (ATUFS): <\/strong>It provides<strong> <\/strong>capital subsidies for technology upgradation.<\/li>\n\n\n\n<li><strong>\u00a0Samarth (Scheme for Capacity Building in Textile Sector): <\/strong>To provide skill training to workers in the textile industry, in partnership with the Ministry of Skill Development &amp; Entrepreneurship.<\/li>\n\n\n\n<li><strong>Textile Cluster Development Scheme (TCDS):<\/strong> To create an integrated workspace and linkages-based ecosystem for existing as well as potential textile units\/clusters to make them operationally and financially viable.<\/li>\n\n\n\n<li><strong>National Technical Textiles Mission (NTTM): The Mission focuses on:<\/strong> research, innovation and development; promotion and market development; education and skilling and; export promotion in technical textiles to position the country as a global leader in technical textiles.<\/li>\n\n\n\n<li><strong>Union Budget Allocations for Ministry of Textiles: <\/strong>The Union Budget announced an outlay of \u20b95272 crores for the Ministry of Textiles for 2025-26.\n<ul class=\"wp-block-list\">\n<li>This is an increase of 19% over budget estimates of 2024-25.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Make in India initiative has significantly enhanced India\u2019s position in global textile manufacturing and exports through targeted policies, infrastructure development, and investment promotion.\u00a0<\/li>\n\n\n\n<li>With sustained efforts, India is poised to become a global textile leader, driving economic growth and employment generation.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/epaper.thehindu.com\/ccidist-ws\/th\/th_international\/issues\/141537\/OPS\/GBLELI8F5.1+G1UEMIRF8.1.html\" target=\"_blank\" rel=\"noopener\"><strong>TH<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<h3><strong>Context<\/strong><\/h3>\n<li class=\"ms-5\">PM Modi in his Mann Ki Baat program, remarked that the textile sector has become a major strength of the country.<\/li>\n<p><\/p>\n<h3><strong>Overview of India&#8217;s Textile Industry<\/strong><\/h3>\n<li class=\"ms-5\">Contribution: The textile and apparel industry contributes 2.3% to our GDP, 13% to industrial production, and 12% to exports.\u00a0<\/li>\n<li class=\"ms-5\">Export Basket: India exported textile items worth US$ 34.4 billion in 2023-24, with apparel constituting 42%, followed by raw materials\/semi-finished materials at 34% and finished non-apparel goods at 30%.\u00a0<\/li>\n<li class=\"ms-5\">Employment: It is the second largest employment generator, after agriculture, with over 45 million people employed directly.<\/li>\n<li class=\"ms-5\">Nearly 80% of its capacity is spread across Micro, Small and Medium Enterprises (MSME) clusters in the country.<\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/28-07-2025\/textile-sector-in-india\" class=\"btn btn-primary btn-sm float-end\">Read\u00a0More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-49440","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/49440","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=49440"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/49440\/revisions"}],"predecessor-version":[{"id":49466,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/49440\/revisions\/49466"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=49440"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=49440"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=49440"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}