A report says that achieving the sector’s USD 100 billion export target by 2030 will depend on building capabilities across the value chain
India’s textile and apparel exports have remained stuck at around USD 40 billion for the past six years despite global trade expanding at a much faster pace, a report revealed. The report noted that achieving the sector’s USD 100 billion export target by 2030 will depend on building capabilities across the value chain rather than relying on manufacturing scale alone.
The India Textiles and Apparel CXO Blueprint 2030 report released by the Clothing Manufacturers Association of India (CMAI) and the Global Alliance for Textile Sustainability (GATS) added that while global trade grew at 3.5 per cent over the past six years, Indian exports have registered a marginal annual uptick of 0.8 per cent.
The report pointed out that the sector remains a leader in cotton, carpets and made-ups, but global demand has moved towards apparel, man-made fibres and technical textiles, categories where its presence is thin.
“The Indian textile and apparel sector is present in global trade. It is not yet positioned where the growth and the margin now sit,” the report mentioned. India holds 83.2 per cent domestic value addition in its textile and clothing exports, among the deepest value chains in the world, yet its apparel exports account for only about 3 per cent of the global market, against Bangladesh’s 9.5 per cent and Vietnam’s 7.3 per cent.
More than 52 per cent of India’s textile exports come from just 134 product categories where India has over 10 per cent global export share, indicating a need for diversification into higher-growth segments. The report mentioned that Indian textile and apparel companies can no longer rely only on raw material availability, manufacturing depth or labour cost advantages.
“Future competitiveness will depend on productivity, quality consistency, design and product development, traceability, resource efficiency, digital capability and the ability to respond to changing buyer requirements,” the report noted.
Evolving Business Environment
The report added that India’s textile and apparel sector is operating in a market environment that is more open, but also more demanding. The sector has scale, employment intensity and an integrated value chain, but its global position remains below potential. It added that India is present in global trade, but not yet positioned strongly enough in the fastest-growing and highest-value categories.
“India has earned global recognition as a manufacturing destination. The next chapter of our growth will depend on how successfully we build capabilities that create greater value for customers and global brands,” said Santosh Katariya, President, CMAI.
The report pointed out that trade agreements and ongoing trade negotiations can bring tariff parity in key markets. The commercial value of these agreements, however, will depend on firm-level readiness such as rules of origin compliance, product alignment, capacity planning, documentation, standards and buyer conversion.
