A+| A| A-
How FPIS and MITRA Scheme Will Be a Game Changer for India’s Textile Sector
Despite showing promising prospects, India’s share in global textile exports is sliding consistently. This paper highlights the current global exports scenario and the key challenges in the Indian textile industry with an emphasis on changing global fibre consumption trends towards man-made fabrics. Global trends in overall textile exports indicate a shift towards apparel made of MMF (50%), while the share of the same in India’s textile exports is very low at around 20%. Currently, MMF dominates global textile fibre consumption with a 72:28 ratio, whereas India’s domestic fibre consumption ratio is presently 40:60—40% MMF and 60% natural fibre. Taking the global fibre consumption of MMF and natural fibre as a base, this paper analyses how the production-linked incentive scheme for MMF and technical textiles can contribute in increasing India’s share in global textile and apparel exports. Further, the role of the Mega Investment Textiles Parks scheme in positioning India as a fully integrated, globally competitive manufacturing and exports hub is analysed.
The textile and apparel sector is one of the largest and oldest sectors in the Indian economy and has emerged as a significant contributor to its growth in recent years. The country has considerable strength across the entire value chain, including natural and man-made fibre (MMF) apparel and home furnishings. It also enjoys a comparative advantage in terms of skilled humanpower compared to global textile players.
In India, there is substantial scope for the expansion of the textile sector due to the abundance of raw materials such as cotton, wool, silk, and jute. Additionally, the sector is closely linked to and dependent on the agricultural sector for raw
materials such as cotton. In India, agriculture is the primary source of livelihood for about 58% of the population (IBEF 2022). Hence, the overall growth of the textile sector is a crucial parameter that contributes to the growth of the Indian economy. Further, India’s textile sector is capable of producing a wide variety of products suitable for different market segments, both within India and across the world.
Dear Reader,
Or
To gain instant access to this article (download).
(Readers in India)
(Readers outside India)
