India's Ambitious Textile and Apparel Export Target
India aims to increase its textile and apparel (T&A) exports from $34.8 billion in 2023-24 to $100 billion by 2030. This raises concerns about the feasibility of such a target given the current growth trends and competitive global market dynamics.
Current Scenario and Challenges
- India's T&A exports grew from $11.5 billion in FY2001 to $34.8 billion in FY24, holding a 4% share in global exports.
- The apparel segment constitutes about 42% of the total T&A exports, remaining stable at a 3% global market share.
- Competitors like Bangladesh and Vietnam have increased their market shares significantly.
- India's failure to capitalize on China's declining market share is notable.
Challenges in the Textile Value Chain
- GM Bt cotton introduction boosted production, but post-2014, production declined, making India a potential net cotton importer by 2024-25.
- The non-approval of next-gen herbicide tolerant Bt seeds is a major hurdle.
- The cotton-to-man-made fibre (MMF) ratio in India (60:40) is contrary to the global trend (30:70).
- Slow technology adoption and weak value chain integration are impediments.
Strategic Approaches for Achieving the Target
To achieve its export target, India must undertake a multi-pronged strategy involving policy reforms and strategic initiatives:
- Transition the garment sector to a fashion-driven industry by investing in MMF-based apparel and removing non-tariff barriers.
- Fast-track PM-MITRA scheme to develop integrated textile hubs.
- Negotiate Free Trade Agreements (FTAs) with the EU and the US to reduce tariffs and boost exports.
- Explore emerging markets such as Japan, Russia, Brazil, and South Korea.
- Enhance cotton productivity through improved GM crop approvals, irrigation, and farming techniques.
Potential Opportunities and Future Implications
The global apparel market is projected to reach $2.37 trillion by 2030, presenting India with a substantial opportunity. The suggested reforms could position India closer to its ambitious export target.
The success of this target relies heavily on the implementation of bold reforms by the government. Without these, the target may remain unrealized.
