{"id":65999,"date":"2026-02-05T18:26:15","date_gmt":"2026-02-05T12:56:15","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=65999"},"modified":"2026-02-05T18:26:29","modified_gmt":"2026-02-05T12:56:29","slug":"india-textile-value-chain","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/05-02-2026\/india-textile-value-chain","title":{"rendered":"Strengthening India\u2019s Textile Value Chain"},"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>In the <strong>Union Budget 2026-27,<\/strong> a <strong>comprehensive and integrated policy framework<\/strong> has been declared to bolster the entire textile value chain- from fibre to fashion, from village industries to global markets.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Integrated Programme for the Textile Sector<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Objective: <\/strong>Boosting competitiveness, fostering self-reliance and creating jobs.<\/li>\n\n\n\n<li><strong>It is structured around five sub-components:<\/strong><\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"c2d6d8\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"495\" height=\"495\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/02\/image-32.png\" alt=\"strengthening india\u2019s textile value chain\" class=\"not-transparent wp-image-66000\" style=\"--dominant-color: #c2d6d8; width:416px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/02\/image-32.png 495w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/02\/image-32-300x300.png 300w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/02\/image-32-150x150.png 150w\" sizes=\"auto, (max-width: 495px) 100vw, 495px\" \/><\/figure>\n<\/div>\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>With an estimated size of <strong>USD 179 billion, <\/strong>the Indian T&amp;A industry contributes <strong>~2% <\/strong>to the country\u2019s GDP, accounts for<strong> ~11%<\/strong> of manufacturing gross value added (GVA), and <strong>8.63% to exports<\/strong>.<\/li>\n\n\n\n<li><strong>Export Basket: <\/strong>India is the<strong> 6th largest global exporter<\/strong> of T&amp;A, with a share of ~4% in world exports in this segment.\n<ul class=\"wp-block-list\">\n<li>India\u2019s export of T&amp;A (including Handicrafts) increased to USD 37.75 billion in FY25, up from USD 35.87 billion in FY24.<\/li>\n\n\n\n<li>In 2025, India\u2019s textile sector recorded export growth across 118 countries and export destinations.<\/li>\n<\/ul>\n<\/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>As per the <strong>Economic Survey 2026-27,<\/strong> textiles industry has a<strong> 9% share<\/strong> in employment across 8 major industry groups.<\/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<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"b8daeb\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"624\" height=\"444\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/02\/image-33.png\" alt=\"india's textile industry\" class=\"not-transparent wp-image-66001\" style=\"--dominant-color: #b8daeb; aspect-ratio:1.4054196727080768;width:313px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/02\/image-33.png 624w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/02\/image-33-300x213.png 300w\" sizes=\"auto, (max-width: 624px) 100vw, 624px\" \/><\/figure>\n<\/div>\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.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Government Initiatives<\/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>Samarth (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>Initiative to Promote Sustainability and Circularity:<\/strong> A tripartite MoU was signed between Textiles Committee, GeM and Standing Conference of Public Enterprises (SCOPE), to promote and mainstream the public procurement of upcycled products.<\/li>\n\n\n\n<li><strong>The Union Budget 2026-27 further<\/strong> emphasizes employment generation, inclusive growth, sustainability, and coordinated implementation led by the Ministry of Textiles, reinforcing India\u2019s position as a competitive, reliable, and forward-looking global textile and apparel hub.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h3>\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:\/\/www.pib.gov.in\/PressReleasePage.aspx?PRID=2222927&amp;reg=3&amp;lang=2\" target=\"_blank\" rel=\"noopener\"><strong>PIB<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong> Context <\/strong><\/p>\n<li class=\"ms-5\"> In the Union Budget 2026-27, a comprehensive and integrated policy framework has been declared to bolster the entire textile value chain- from fibre to fashion, from village industries to global markets. <\/li>\n<p><\/p>\n<p><strong> Integrated Programme for the Textile Sector <\/strong><\/p>\n<li class=\"ms-5\"> Objective: Boosting competitiveness, fostering self-reliance and creating jobs. <\/li>\n<li class=\"ms-5\"> It is structured around five sub-components: <\/li>\n<p><a href=\" https:\/\/www.nextias.com\/ca\/current-affairs\/05-02-2026\/india-textile-value-chain\" class=\"btn btn-primary btn-sm float-end\">Read More<\/a><\/p>\n","protected":false},"author":4,"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-65999","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\/65999","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\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=65999"}],"version-history":[{"count":3,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/65999\/revisions"}],"predecessor-version":[{"id":66016,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/65999\/revisions\/66016"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=65999"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=65999"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=65999"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}