India's Textile Sector Shifting Towards Man Made Fibre In Tandem With Global Demand: Economic Survey
Date
1/31/2025 2:08:03 PM
(MENAFN- KNN India)
New Delhi, Jan 31 (KNN) India maintains its position as a global textile powerhouse, accounting for approximately 11 percent of the nation's manufacturing GVA and serving as a significant source of employment, as announced in Economic Survey 2024-25.
The survey notes that while India has traditionally concentrated on cotton textiles, global demand increasingly favours man-made fibres (MMF). This market reality has prompted calls for a strategic shift toward greater MMF production while maintaining the country's strong cotton textile base.
In the global textile and apparel trade, India ranks as the sixth-largest exporter, commanding a 4 percent market share, with textiles, apparel, and handicrafts contributing 8 percent to India's total merchandise exports in FY24.
The sector has experienced recent fluctuations in export performance. After reaching a peak of USD 44.44 billion in FY22, exports declined to USD 35.87 billion in FY24, slightly down from USD 36.69 billion in FY23.
In the technical textiles segment, India has emerged as a significant player, currently ranking fifth globally. The domestic technical textiles market reached USD 26.8 billion in FY24, with exports valued at USD 2.58 billion.
The government has implemented various supportive measures, including a Production Linked Incentive (PLI) scheme and quality control regulations covering 68 items across various segments, aimed at strengthening the technical textiles manufacturing ecosystem.
The sector's heavy reliance on cotton, contrasting with global preferences for MMF, has affected international competitiveness. Limited foreign direct investment has resulted in technological gaps and dependence on imported machinery.
Additionally, a persistent skills gap has impacted productivity and innovation potential. Industry experts emphasise that addressing these challenges is crucial for India to fully realise its potential in the global textile market.
(KNN Bureau)
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