India’s Textile Industry Eyes $100 Billion Export Target by 2030

ENA Sectors 2024-11-25 15:04:23 New Delhi, Nov 25 (KNN) The global textile trading industry, valued at an impressive USD 800 billion, has long been a cornerstone of global commerce. India, contributing USD 35 billion annually in exports, has unveiled an ambitious plan to elevate this figure to USD 100 billion by 2030. This ambitious roadmap, announced by the Indian government, envisions a robust 19 per cent compound annual growth rate (CAGR) over the next six years. Achieving this goal will necessitate investments of nearly Rs 200,000 crore and create employment for three million people. From 2001 to 2014, Indias textile sector thrived with a 9 per cent CAGR. However, the past decade has been marked by stagnation due to the expiration of the EU trade treaty, COVID-19 disruptions, and high channel inventories. While the 2030 target appears challenging, the China plus one strategy and new catalysts like Production-Linked Incentive (PLI) schemes and Free Trade Agreements (FTAs) with the EU and UK could help the industry reclaim its global position. Geopolitical tensions and rising labor costs are prompting global brands to reduce reliance on China, creating opportunities for countries like India. Despite competition from Bangladesh, India's well-established textile ecosystem and government incentives position it as a strong alternative. Bangladesh's political instability further enhances Indias appeal. The garmenting and home textile sectors are expected to lead the way, benefiting from global retailer diversification strategies. Additionally, technical textiles—used in healthcare, industrial applications, and protective gear—are seeing rising demand. Consolidation trends among Indian manufacturers are fostering economies of scale, enabling larger players to secure contracts from multinational retailers. Indias ongoing FTA negotiations with the EU and UK could be transformative by reducing import duties and unlocking new markets. Meanwhile, the governments PLI schemes are incentivising investments in textiles, ensuring the industrys readiness for global competition. With strategic investments, a focus on value-added segments, and favourable trade agreements, Indias textile industry is poised for a transformative decade, promising significant economic and employment gains. (KNN Bureau) 40025 https://knnindia.co.in/news/newsdetails/sectors/indias-textile-industry-eyes-100-billion-export-target-by-2030 2024-11-25 15:04:23 knnindia.co.in India’s Textile Industry Eyes $100 Billion Export Target by 2030