After Apple, India’s Next Big Manufacturing Opportunity Lies in Apparel

India’s textile sector has the potential to generate 10 million jobs, but key policy changes are needed to unlock this opportunity.
With Donald Trump’s return to the White House, global geopolitics is shifting towards protectionism and economic nationalism. While this poses challenges, it also opens a massive opportunity for India—especially if the right policies are put in place to boost manufacturing in textiles, apparel, food processing, and cleantech.
Textiles: A High-Potential Sector for Job Creation
The textile and garment industry is uniquely positioned to create millions of jobs, particularly in manufacturing. Unlike capital-intensive industries such as automobiles and pharmaceuticals, the textile sector has low barriers to entry, making it ideal for small and medium-sized enterprises and for promoting inclusive economic growth. However, India has yet to fully leverage its potential.
Currently, 70% of the global textile market is driven by manmade fibers (MMF), but India lags behind in this segment. Nearly 35% of India's textile exports still rely on cotton, while the global market is shifting towards synthetic alternatives like polyester and viscose. This presents a major export opportunity for India, provided key reforms are made.
Five Key Steps to Boost India’s Textile Industry
1. Eliminate High Import Duties on Raw Materials:
o India’s high import duties on synthetic fibers make domestic production uncompetitive.
o The government must scrap anti-dumping duties and lower tariffs on imported raw materials like polyester and viscose.
o Countries like Vietnam and Bangladesh benefit from cheaper raw material imports, making their textile industries more competitive.
2. Invest in Textile Manufacturing Parks:
o The PM-MITRA (Mega Integrated Textile Region and Apparel) Parks Scheme must be accelerated.
o Large-scale textile parks with world-class infrastructure will help create employment hubs and boost exports.
o A ₹10,000 crore investment is already planned for this initiative.
3. Improve Cotton Productivity:
o India is the largest producer of cotton, but yields are significantly lower than those of competing nations.
o Modern farming techniques and genetically modified seeds should be introduced to enhance productivity.
o A five-year cotton productivity program could boost output by 20-25%.
4. Expand Technical Textiles Industry:
o Technical textiles are used in agriculture, construction, healthcare, and automobiles.
o The National Technical Textiles Mission was launched to enhance India’s footprint in this space, but faster implementation is required.
5. Partner with Leading Global Firms for Domestic Manufacturing:
o India must collaborate with global brands and textile giants to integrate its supply chains into international markets.
o The success of India's mobile phone industry, which grew exports from $0.2 billion in 2014 to $15 billion today, serves as a blueprint for the textile sector.
o Production-linked incentives (PLI) should be extended to attract global investments in textiles.
The Time to Act is Now
The global textile industry is undergoing rapid transformation, and India must seize this moment to emerge as a global apparel powerhouse. By implementing structural reforms, removing trade barriers, and promoting investment in textile infrastructure, India can create millions of jobs and boost its export share.
Just as India revolutionized mobile manufacturing, the same policy-driven approach can make textiles the next big success story. The textile sector holds the key to job creation at scale, and decisive action is needed now to ensure India does not miss this opportunity.