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India’s Textile Export Roadmap: Government Sets Ambitious USD 100 Billion Target by 2030

30 Oct, 2025 146

 

Mumbai, October 30, 2025:
In a significant move to strengthen India’s position in global trade, the Ministry of Textiles is preparing a comprehensive strategy aimed at boosting textile and apparel exports to USD 100 billion by 2030. The roadmap seeks to enhance India’s global competitiveness against key rivals such as Bangladesh, Vietnam, and China by focusing on cost reduction, infrastructure modernisation, value addition, and innovation in man-made fibres.


A Renewed Vision for India’s Textile Industry

India’s textile sector, one of the oldest and largest industries in the country, contributes nearly 2.3% to the national GDP and employs over 45 million people. However, in recent years, the nation has faced stiff competition from emerging textile hubs that offer lower costs, faster production, and preferential trade agreements.

The Ministry’s new roadmap aims to reclaim India’s competitive edge by addressing these structural challenges and positioning the country as a global hub for sustainable and high-value textile manufacturing.

According to government officials, the strategy will be implemented in three phases — short-term (2 years), medium-term (5 years), and long-term (till 2030). Each phase will target specific bottlenecks such as logistics, power costs, compliance burdens, and labour productivity.


Strategic Focus Areas

  1. Cost Optimisation and Ease of Doing Business

    • The plan emphasises reducing input costs through improved logistics, rationalised power tariffs, and efficient raw material sourcing.

    • Efforts are underway to simplify export procedures, improve GST refund timelines, and reduce bureaucratic delays for exporters.

  2. Infrastructure Development via PM MITRA Parks

    • The government is fast-tracking the establishment of PM MITRA (Mega Integrated Textile Region and Apparel) Parks — large-scale integrated facilities that will house spinning, weaving, dyeing, and garmenting units.

    • These parks are expected to bring down logistics costs by 10–15% and create employment for nearly one million workers.

  3. Promotion of Man-Made and Technical Textiles

    • Recognising the global shift toward synthetic and technical fibres, the policy will encourage R&D and domestic production in man-made fibre (MMF) and technical textiles, areas where India currently lags behind.

    • A dedicated Innovation Support Scheme is being planned to promote collaboration between industry and academia for new material development.

  4. Sustainability and Green Manufacturing

    • With growing global demand for sustainable fashion, the ministry aims to promote eco-friendly dyes, water-efficient production methods, and waste recycling systems.

    • India will also align its textile exports with international ESG and carbon-neutral standards to access premium markets.


Industry Response and Policy Recommendations

The textile industry has welcomed the government’s renewed focus but stressed the need for policy consistency and financial support.
Key recommendations from industry associations include:

  • Removal of import duty on cotton and certain synthetic fibres to ensure raw material cost parity with competitors.

  • Production-linked incentives (PLIs) for textile processing and man-made fibre units.

  • Export credit support and low-interest working capital to improve liquidity among MSME exporters.

  • Accelerated Free Trade Agreements (FTAs) with the EU, UK, and the U.S., which together account for nearly 45% of India’s textile exports.

Industry experts believe these measures could help India expand its global market share from the current 4% to 8–9% by 2030.


Challenges and Global Context

Despite the optimism, the road ahead is not without challenges. India continues to face higher energy costs, lower labour productivity, and limited access to high-end textile machinery. Additionally, competing countries like Bangladesh and Vietnam enjoy preferential duty-free access to key Western markets under trade agreements, putting Indian exporters at a disadvantage.

To counter this, the Ministry is exploring strategic trade negotiations and infrastructure financing mechanisms to ensure Indian manufacturers can compete on both cost and quality.


Government Commitment and Future Outlook

Union Textiles Minister Giriraj Singh recently reaffirmed the government’s commitment to achieving the USD 100 billion target, describing it as a “realistic and necessary goal for India’s industrial future.” He highlighted that the textile sector will play a pivotal role in India’s journey toward becoming a USD 5 trillion economy and will also contribute to carbon-neutral manufacturing by 2030.

Prime Minister Narendra Modi has similarly expressed confidence that India’s textile exports could surpass ₹9 lakh crore (approximately USD 103 billion) within the decade, provided reforms are implemented swiftly and efficiently.


Conclusion

The textile sector remains one of India’s strongest economic pillars, with vast potential for innovation, employment, and export growth. The Ministry’s new roadmap signals a determined push to transform India from a cost-sensitive exporter to a value-driven global leader in sustainable textiles.

If executed effectively, the initiative could not only revitalise India’s textile ecosystem but also help the country capture a larger share of the global apparel value chain, setting the stage for the next era of growth in Indian manufacturing.

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