Niti Aayog has called for urgent reforms in India’s textile sector to maintain global competitiveness. In its Trade Watch July-September (Q2) FY25 report, the government think tank emphasized the need for improvements in supply chain integration, cost efficiency, and sustainability compliance. India’s textile exports stood at $35.94 billion in FY24, a 1.95% decline compared to the previous year, while competitors like Bangladesh and Vietnam reported exports of around $44 billion.
Despite being one of India’s oldest industries, the sector’s share in global trade is just 4%, making India the sixth-largest textile exporter. The country has a strong foothold in natural fiber-based textiles, particularly cotton and carpets, but struggles in apparel and technical textiles, where Bangladesh, Vietnam, and countries like China and Germany dominate.
The report highlights the challenges posed by reliance on China for synthetic fiber and technical textile raw materials, limited diversification in export products, and growing competition from countries like Vietnam and Mexico. Niti Aayog stressed the importance of reforms to seize new opportunities arising from geopolitical shifts and improve India’s position in the global textile market.
To overcome these challenges, India needs to enhance its ease of doing business, improve trade infrastructure, and ensure alignment with global trade regulations.
