India’s Textile Competitiveness Depends On Supply Chain Efficiency, Technology & Policy Certainty

New Delhi, Nov 9 (KNN) India’s competitiveness in the global textile market will increasingly depend on supply chain efficiency, delivery timelines, technology adoption and policy certainty, rather than factory-level production costs alone, according to an analysis presented around the ITMF Annual Conference 2026 in Fortaleza, Brazil.

The analysis noted that tariffs and shifting trade relationships may help India attract export orders, but retaining buyers will require reliable fabric availability, processing capacity, quality, logistics and timely execution, TOI reported.

Data from the International Textile Manufacturers Federation (ITMF) showed that around 95 per cent of new short-staple spindles shipped globally in 2025 went to Asia and Oceania, indicating continued investment in regions with established textile manufacturing ecosystems.

The analysis said buyers increasingly consider inventory costs, delayed replenishment, lost sales and end-of-season discounts alongside free-on-board prices. Shorter lead times and the ability to adjust production volumes to demand can therefore influence sourcing decisions.

It also highlighted changes in global fibre production, with synthetic fibres accounting for around 69 per cent of output and polyester contributing close to 59 per cent. It called for India to strengthen both cotton and man-made fibre value chains, including processing, filament and downstream manufacturing capabilities.

Technology adoption, particularly artificial intelligence in production planning, quality inspection, forecasting, process optimisation and inventory management, was identified as another area for improving productivity. The analysis emphasised the need for practical digital solutions and training, particularly for MSMEs.

Traceability and environmental disclosures are also becoming important for access to major export markets. The analysis called for textile clusters to provide accessible testing facilities, common documentation standards and affordable digital traceability tools to support smaller suppliers.

On policy, it highlighted the importance of predictable export support measures, including the Rebate of State and Central Taxes and Levies (RoSCTL) for apparel and made-ups and the Remission of Duties and Taxes on Exported Products (RoDTEP) for other eligible textile products.

It also called for multi-year certainty in export incentive rates, advance consultation before revisions, avoidance of retrospective changes and a stable approach to cotton import duties.

The analysis recommended assessing new textile investments not only by capacity addition and capital deployment, but also by improvements in productivity, lead times, value addition, upstream linkages and MSME participation.

The source note states that spindle shipment data are from ITMF statistics presented at the conference held on October 14–15, 2026, while fibre-share estimates were compiled by Wazir Advisors. The interpretations and recommendations are those of the author.

(KNN Bureau)