Can India Become the Next Global Textile Leader?

India, known for its rich textile heritage, faces both opportunities and challenges in its quest to become the world’s next textile hub. Recent political instability in Bangladesh has opened the door for India to step up in the global textile market. However, despite the potential, India must overcome several hurdles to succeed.

India and Bangladesh are major players in the global textile industry. India’s textile market is valued at $150 billion, with $40 billion from exports. Bangladesh, though smaller, exports $45 billion, mainly through its ready-made garment (RMG) sector. While India has size, Bangladesh excels in efficiency and export focus. 

A key issue for India is its low cotton yield. Despite being one of the largest cotton producers, India’s yield per hectare is significantly lower than countries like China and Brazil. This is due to poor seed quality, fragmented land, and outdated technology.

The Indian government has tried to help farmers by increasing the Minimum Support Price (MSP) for cotton. However, this makes Indian cotton more expensive compared to international markets, especially as global cotton prices have dropped by 30% in recent months. The higher domestic prices, combined with import duties, are hurting India’s textile industry, particularly the cotton spinning sector.

To become a global textile leader, India must address these challenges by improving cotton yields, reducing costs, and innovating. The road ahead is tough, but with the right strategies, India has the potential to rise to the top of the global textile industry.
 

31/08/2024 06:18am