India's new plan: Target to reach $100 billion in textile exports by 2030
Boosting India's Textile Industry: Ministry Drafts Plan to Gain an Edge Over Bangladesh and China; Aims to Achieve $100 Billion in Exports by 2030With Bangladesh, Vietnam, and China becoming more competitive, India is working to regain its value advantage in the global textile market. The government is preparing a cost reduction roadmap that will be implemented in phases: a two-year short-term plan, a five-year medium-term plan, and a long-term plan. According to an ET report, the plan will examine all major cost factors, such as raw materials, labor regulations, taxes, and compliance requirements, to make production and exports cheaper. Officials involved in the work said the roadmap aims to identify where India's cost structure is higher than its competitors and address those shortcomings."The objective is to compare India's costs with those of major global competitors and work on measures to reduce production and export costs and minimize wastage in manufacturing," an official said. Why the Indian textile industry is lagging: Despite being one of the world's largest textile producers, India struggles on several fronts. High logistics and energy costs add to the burden of expensive raw materials, eroding the country's advantage in global markets. In comparison, both Bangladesh and Vietnam operate with lower costs and better productivity. Their labor laws are considered more flexible, and they enjoy duty-free access to raw materials and key markets like Europe.Vietnam ships goods to China without any tariff barriers, while Bangladesh benefits from a cheaper wage structure than India. Industry representatives estimate that labor productivity is 20% to 40% higher in these competing countries. According to ET, the new framework is expected to increase textile exports from the current level of around $40 billion to $100 billion by 2030. As part of this effort, the Ministry of Textiles is creating systems to improve research and development in fibers, fabrics, technical textiles, sustainable materials, and digital traceability.A committee has already been formed to explore how innovation in branding and design can be incorporated for international markets, along with creating opportunities for design houses and start-ups working in new-age textiles. "Extensive consultations will be held with industry associations, banks, innovation labs, start-ups, and international experts," the official said. The government is working on a roadmap, but data shows that the industry's growth remains slow. In the first half of FY2026, textile and apparel exports grew only 0.39% year-on-year.Sanjay Jain, chairman of the National Expert Committee on Textiles of the Indian Chamber of Commerce, said that reforms will play a key role in reducing costs. "Removing quality control orders, rationalizing labor laws, and a free trade agreement with Europe will help reduce costs significantly," he told ET.read more :- Rupee open Falls 20 Paise to 88.40/USD
