India’s textiles and apparel exports including handicrafts grew at a modest rate of 1 per cent during the fiscal year 2023-24 (FY24) to reach Rs 2.97 lakh crore (~$35.5 billion), as per the Economic Survey released by the Finance Ministry.
Growth in the industry was led by the RMG exports which accounted for 41 per cent with a value of Rs 1.2 lakh crore (~$14.34 billion). This was followed by cotton textiles, which made up 34 per cent, and man-made textiles at 14 per cent.
Despite this growth, the sector faced several challenges, highlights the report. As a significant portion of the sector’s production capacity comes from micro, small, and medium enterprises (MSMEs), their small scale limits efficiency and economies of scale achieved by large-scale modern manufacturing.
The fragmented nature of India’s apparel sector also poses problems. The industry sources raw materials from Maharashtra, Gujarat, and Tamil Nadu, while spinning capacities are concentrated in the southern states, leading to higher transportation costs and delays.
Additionally, the industry relies heavily on imported machinery, except for the spinning segment, and faces issues with inadequate skilled manpower and technological obsolescence.
To address these challenges, the central government plans to establish seven PM Mega Integrated Textile Region and Apparel (MITRA) Parks with a budget of Rs 4,445 crore ($0.531 billion) between FY22 and FY28. These parks will be located in Tamil Nadu, Telangana, Gujarat, Karnataka, Madhya Pradesh, Uttar Pradesh, and Maharashtra.
Launched with an outlay of Rs 1,481 crore for the period from FY21-24, the National Technical Textiles Mission (NTTM) focuses on increasing the use of technical textiles in various sectors through four main components: research, innovation and development; promotion and market development; education, training and skilling; and export promotion. The mission has been extended until March 2026, with a sunset clause until March 2028. So far, NTTM has approved 137 research projects worth Rs 474 crore ($56.65 million).
The National Handloom Development Program(NHDP) has approved an outlay of Rs 998 crore ($119.3 million) for FY22 to FY26. In FY24, the government initiated steps to establish 96 small handloom clusters and set up nine mega handloom clusters.
These initiatives aim to bolster India's textile and apparel sector, addressing the existing constraints and fostering growth in the coming years.
