{"id":87246,"date":"2026-10-23T17:49:16","date_gmt":"2026-10-23T12:19:16","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=87246"},"modified":"2026-10-23T17:49:31","modified_gmt":"2026-10-23T12:19:31","slug":"india-textile-industry","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/23-10-2026\/india-textile-industry","title":{"rendered":"Strengthening India\u2019s Textile Industry Amid Rising Chinese Imports"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/ Economy<\/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>The Cloth Manufacturers Association of India (CMAI) survey is expecting a rise of 52% in the textile industry while <strong>raising concerns of imports from China.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Textile Sector of India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Share in Domestic Trade: <\/strong>The domestic apparel &amp; textile industry in India contributes approximately <strong>2.3% to the country\u2019s GDP,<\/strong><strong>13% <\/strong>to industrial production and<strong> 12%<\/strong> to exports.\n<ul class=\"wp-block-list\">\n<li>It has expanded to nearly <strong>USD 190 billion<\/strong> by 2025-26.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Share in Global Trade: <\/strong>India has a<strong> 4% <\/strong>share of the global trade in textiles and apparel.<\/li>\n\n\n\n<li><strong>Export: <\/strong>India is the <strong>6th largest exporter of Textiles &amp; Apparel <\/strong>in the world.\n<ul class=\"wp-block-list\">\n<li>The share of textile and apparel (T&amp;A) including handicrafts in India\u2019s total exports stands at a significant <strong>8.21%<\/strong> in 2023-24.\u00a0<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Production of Raw Material: <\/strong>India is one of the largest producers of cotton and jute in the world.\n<ul class=\"wp-block-list\">\n<li>India is also the 2nd largest producer of silk in the world, and 95% of the world\u2019s hand-woven fabric comes from India.\u00a0<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Employment Generation: <\/strong>The industry is the 2nd largest employer in the country, providing direct employment to 45 million people and 100 million people in the allied sector.\u00a0<\/li>\n\n\n\n<li><strong>Regions:<\/strong> Andhra Pradesh, Telangana, Haryana, Jharkhand, and Gujarat are the top textile and clothing manufacturing states in India.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges in India\u2019s Textile Sector<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The sector remains <strong>highly fragmented<\/strong>, with a <strong>predominance of small and informal enterprises <\/strong>that face constraints in scaling up, adopting technology, and accessing formal finance.<\/li>\n\n\n\n<li><strong>Low labour productivity <\/strong>and<strong> skill gaps <\/strong>persist due to outdated production practices, limited formal training, and inadequate industry\u2013academia linkages.<\/li>\n\n\n\n<li><strong>India faces high logistics and transaction costs and<\/strong> delays in customs clearance, reducing export competitiveness.<\/li>\n\n\n\n<li><strong>Access to affordable credit<\/strong> remains a major issue for MSMEs and handloom units.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why Is China\u2019s Textile Manufacturing Model Successful?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Integrated supply chains: <\/strong>China\u2019s textile clusters connect spinning, weaving, dyeing, garment manufacturing and accessories under one roof.\n<ul class=\"wp-block-list\">\n<li>For example, <strong>Shaoxing in Zhejiang <\/strong>is a major textile and fabric trading hub.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Technology-driven manufacturing:<\/strong> Chinese textile mills increasingly use automated spinning, digital quality inspection and smart manufacturing systems to improve productivity and consistency.<\/li>\n\n\n\n<li><strong>Strong infrastructure and logistics:<\/strong> Industrial clusters are supported by ports, highways, warehousing and export networks.\n<ul class=\"wp-block-list\">\n<li><strong>The Ningbo-Zhoushan Port<\/strong> facilitates the movement of textile products and other manufactured goods to international markets.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Economies of scale:<\/strong> Large production capacities allow firms to reduce per-unit costs and fulfil bulk orders.\n<ul class=\"wp-block-list\">\n<li>For example, <strong>Guangzhou and its surrounding Pearl River Delta <\/strong>manufacturing region have extensive garment manufacturing and trading networks serving domestic and international markets.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Initiatives to Promote Textile Sector<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>PM Mega Integrated Textile Regions and Apparel (PM MITRA) Parks Scheme:<\/strong> Its objective is to develop 7 mega integrated textile parks across India in <strong>Tamil Nadu, Telangana, Gujarat, Karnataka, Maharashtra, Madhya Pradesh, and Uttar Pradesh.<\/strong>\n<ul class=\"wp-block-list\">\n<li>It aims to create a <strong>modern, integrated, world class plug and play <\/strong>textile infrastructure.<\/li>\n\n\n\n<li><strong>Foreign direct investment (FDI):<\/strong> Japanese investment aligns well with India\u2019s goals under the \u201cMake in India for the World\u201d and \u201cChina\u2011plus\u2011one\u201d manufacturing strategies.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Production Linked Incentive (PLI) Scheme:<\/strong> The Scheme for Textiles was approved to promote production of <strong>Man-Made Fibre (MMF) Apparel<\/strong>, <strong>MMF Fabrics<\/strong> and <strong>products of Technical Textiles<\/strong> in the country to enable the textile sector to achieve size and scale and to become competitive.<\/li>\n\n\n\n<li><strong>Exports Promotion Councils (EPCs): <\/strong>There are eleven Exports Promotion Councils (EPCs) representing various segments of the textiles &amp; apparel value chain from Fibre to finished goods as well as traditional sectors like handloom, handicrafts and carpets.<\/li>\n\n\n\n<li><strong>National Technical Textiles Mission (NTTM): <\/strong>Launched in 2020 to promote the production, innovation, and export of technical textiles in India.<\/li>\n\n\n\n<li><strong>National Fibre Mission: <\/strong>Aims to improve the productivity, quality, and sustainability of natural and man-made fibres.<\/li>\n\n\n\n<li><strong>Handloom and Handicrafts Sector: <\/strong>Nearly <strong>\u20b92,000 crore<\/strong> has been invested under the <strong>National Handloom Development Programme.<\/strong>\n<ul class=\"wp-block-list\">\n<li>Initiatives such as the<strong> Government e-Marketplace (GeM), India Handmade Portal, GI tagging, Mega Handloom Clusters, and the Weavers&#8217; MUDRA Scheme<\/strong> have expanded market opportunities and strengthened artisans&#8217; incomes.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Way Ahead<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Technology upgradation window:<\/strong> Provide time-bound interest subsidies or credit guarantees for MSMEs purchasing automated looms and energy-efficient machinery.<\/li>\n\n\n\n<li><strong>Improve access to man-made fibres:<\/strong> Rationalise inverted duty structures, where they exist, and improve domestic availability of competitively priced polyester and viscose inputs to help Indian firms expand into global synthetic apparel markets.<\/li>\n\n\n\n<li><strong>Textile supplier network:<\/strong> Develop digital platforms connecting garment exporters with domestic yarn, fabric, dyeing, accessories and packaging suppliers to reduce sourcing delays.<\/li>\n\n\n\n<li><strong>Improve worker productivity:<\/strong> Expand industry-linked training with courses in advanced machinery operation, garment quality control and digital manufacturing.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Concluding remarks<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>China\u2019s experience shows that global competitiveness rests on an integrated manufacturing ecosystem, technological advancement and efficient supply chains.\u00a0<\/li>\n\n\n\n<li>For India, the <strong>China Plus One strategy<\/strong> presents an opportunity to strengthen domestic capabilities and attract global investment. By focusing on productivity, innovation, and sustainable manufacturing, India can secure a stronger position in the global textile value chain.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.thehindu.com\/business\/festival-season-to-boost-textile-sales-chinese-imports-remain-a-concern\/article71604697.ece\" target=\"_blank\" rel=\"noopener\"><strong>TH<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong> Context <\/strong><\/p>\n<li class=\"ms-5\"> The Cloth Manufacturers Association of India (CMAI) survey is expecting a rise of 52% in the textile industry while raising concerns of imports from China. <\/li>\n<p><\/p>\n<p><strong> Textile Sector of India <\/strong><\/p>\n<li class=\"ms-5\"> Share in Domestic Trade: The domestic apparel &#038; textile industry in India contributes approximately 2.3% to the country\u2019s GDP,13% to industrial production and 12% to exports. <\/li>\n<li class=\"ms-5\"> It has expanded to nearly USD 190 billion by 2025-26. <\/li>\n<p><a href=\" https:\/\/www.nextias.com\/ca\/current-affairs\/23-10-2026\/india-textile-industry \" class=\"btn btn-primary btn-sm float-end\">Read More<\/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-87246","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\/87246","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=87246"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/87246\/revisions"}],"predecessor-version":[{"id":87248,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/87246\/revisions\/87248"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=87246"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=87246"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=87246"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}