Challenges in India's Textile Sector: A Path to Global Competitiveness

India's textiles sector faces significant hurdles such as reliance on cotton, limited FDI, and a dominant MSME presence hampering scale and efficiency. The Economic Survey highlights the need for technological advancements, focus on manmade fibers, and skill development to improve global competitiveness and diversify export markets.

The Economic Survey 2024-25 has highlighted substantial challenges confronting India's textile sector, despite its complete value chain. The industry has seen limited foreign direct investment, stalling technological advancement and causing a dependency on imported textile machinery.

The survey noted that the prevalence of micro, small, and medium enterprises (MSMEs) restricts the textile sector's ability to scale efficiently. This fragmentation contributes to higher logistical costs.

A significant reliance on cotton limits competitiveness in international markets compared to the global trend toward manmade fibers. The report underscores the importance of focusing on these fibers alongside cotton to bolster India's position as a textile powerhouse.