Despite its size, India's textile industry has struggled on the global market. India’s share in global textile exports has declined while countries like Bangladesh and Vietnam are expanding their market share. A new study suggests India’s textile exports are constrained by high costs, unhelpful customs policies and competition from abroad.
In an article published on Ideas for India, a policy research portal, Saon Ray of the Indian Council for Research on International Economic Relations (ICRIER) explores the reasons for Indian garment exporters' struggles by drawing on data from surveys conducted in 2010. The survey covered 127 firms and 25 respondents in five apparel production centers in Bangalore, Delhi, Kolkata, Ludhiana, and Tirupur.
To make Indian textiles more competitive, the survey recommends that the government should improve infrastructure networks to streamline the textile input-procurement process and ease credit constraints for textile exporters.
