Cheap imports, declining FDI challenge India's textile export ambitions

India has set the target to reach $100 billion in textile exports by 2030

India has set an ambitious target of textile exports worth $100 billion by 2030, but the recent data released by the Ministry of Textiles pertaining to India’s textile and apparel trade puts achievement of the goal in jeopardy.

 

Textile and apparel exports increased 19.26 per cent from the financial year 2022 - 2024 (FY22 -24). Furthermore, the exports of ready-made garments, man-made textiles, jute products, and handlooms (mentioned in the ‘others’ category) fell below the pre-pandemic level. (chart 1)   

 

India’s share in world textile and apparel exports has been declining since 2015, reached its lowest in 2022, except during the pandemic. (chart 2) 

 

Textile imports remained above the pre-pandemic figures. The combined imports of ready-made garments, cotton textiles, and handicrafts (April-October) grew roughly 11 per cent year-on-year (Y-o-Y) in FY25. (chart 3) 

 

Cheap imports from China and Bangladesh continue to be a menace to the domestic textile industry, as reflected in their share of India’s imports. (chart 4) 

 

Meanwhile, the number of people coming forward to hone and update their craft at textile work witnessed a slight decline in the past three years. (chart 5) 

 

The value of foreign direct investment (FDI) in the textile sector fell short of the pre-pandemic level, notwithstanding its rise in recent years. (chart 6)