India is likely to outdo China in the textile sector. Contributing factors are cheap labor and modernization. With quality and skilled labor and machinery, India can easily overcome Chinese competition in the textile industry as labor costs in China are very high compared to India’s.

India aims at doubling the annual revenue from textiles by 2025. Foreign direct investment is being encouraged in the textile sector, which has the potential to create millions of jobs. High-tech machines which help deliver quality goods will enable India to reach the set targets at the production level. Tamil Nadu alone accounts for 39 per cent of the total textile production in the country. There are 4.13 lakh handlooms in Tamil Nadu providing employment to 6.08 lakh weavers while the 3.66 lakh power looms and 1,889 spinning mills provided employment to another 2.40 lakh people. Knitwear and woven garment production units provide employment to over five lakh people.

The textile sector in India is showing signs of recovery. The stressed advance ratio of the textile sub-sector has improved in March 2018 from the levels of September 2017. The sector was heavily hit by demonetization, GST, rupee appreciation and high domestic cotton prices. Packages and incentives are expected to create a strong turnaround in the textile and clothing sector.