Why in the News?

India is one of the world’s top textile exporters and a major manufacturing center, but its textile industry is now at a critical stage.

What challenges affect India’s textile industry globally?

• Geopolitical Tensions: Rising global conflicts and trade restrictions disrupt export routes and reduce India’s textile market access. Eg: The U.S.-China trade war shifted demand to countries like Vietnam, affecting Indian exporters’ global share.
• Fragmented Supply Chains: Lack of coordination between suppliers, weavers, and exporters leads to production delays and higher costs. Eg: During the COVID-19 pandemic, uncoordinated lockdowns at different supply chain points delayed delivery timelines.
• Price Volatility: Unpredictable fluctuations in raw material prices reduce planning efficiency and shrink profit margins. Eg: In 2022, cotton prices spiked globally, affecting the cost structure of Indian textile firms and making exports less competitive.
• Sustainability Compliance: Global markets demand eco-friendly and traceable textile products, which Indian firms may struggle to provide without investing in green technology. Eg: The EU’s push for traceability and environmental standards may restrict access for non-compliant Indian products.
• Changing Consumer Preferences: International buyers now prioritize ethically sourced, durable, and sustainably certified products. Eg: Brands like H&M and Levi’s require sustainability certifications, posing challenges for uncertified Indian manufacturers.

Why is regenerative farming vital for textiles?

• Sustainable Raw Material Sourcing: Regenerative farming ensures a steady and eco-friendly supply of natural fibres like cotton, reducing environmental impact. Eg: In Aurangabad, Maharashtra, over 6,000 farmers under the Regenerative Cotton Program reported higher yields and soil health improvement.
• Climate Resilience: It improves soil health and enhances resistance to climate shocks, ensuring consistent fibre quality. Eg: Regen farms showed better crop survival during erratic rainfall and drought periods, supporting uninterrupted textile production.
• Cost-Effective Production: Reduced dependence on chemical inputs lowers input costs, making raw materials more affordable for textile producers. Eg: Farmers using regen methods observed less fertilizer usage, lowering their overall production cost.
• Enhanced Traceability: Regen farming enables real-time data and certification, ensuring supply chain transparency demanded by global brands. Eg: Cotton grown under traceable regenerative systems is preferred by brands like Patagonia for its verified originand sustainability.
• Rural Livelihood and Inclusion: It creates inclusive rural economies by empowering smallholders, supporting gender equity, and connecting farmers with global markets. Eg: Regen cotton initiatives have led to higher incomes and women participation in farming across India’s cotton belts.

How does traceability boost textile exports?

• Product Authenticity: Traceability ensures transparency from raw material to final product, building consumer trust in international markets. Eg: Kasturi Cotton branding enhances India’s image by assuring authentic, high-quality cotton to global buyers.
• Sustainability Compliance: Export destinations demand eco-conscious sourcing. Traceable supply chains show alignment with sustainability standards. Eg: The EU and U.K. emphasize environmentally responsible production under FTAs and Digital Product Passports (DPPs).
• Market Access & Expansion: Traceability helps Indian textiles meet foreign regulatory standards, easing entry into eco-sensitive markets. Eg: India-U.K. Free Trade Agreement (FTA) can boost exports by leveraging traceability credentials.
• Brand Accountability: It shifts perception from just a supplier to a responsible brand, enhancing global brand equity. Eg: Tech-based tracking systems help Indian brands share sustainability stories, increasing appeal in premium markets.
• Competitive Differentiation: Traceable products stand out in global markets with rising demand for ethical fashion. Eg: As per the 2023 Consumer Circularity Survey, over 37% consumers consider traceability a key purchase factor.

What are the steps taken by the Indian government? 

• PM MITRA Scheme: Establishes Mega Integrated Textile Regions and Apparel Parks to integrate the entire textile value chain, reduce logistics costs, boost competitiveness, and create jobs.
• Promotion of Regenerative Cotton Farming: Supports sustainable farming practices to improve soil health, reduce chemical use, and enhance cotton qualitythrough collaborative platforms.
• Support for Technical Textiles and Innovation: Launches initiatives like the National Technical Textiles Mission to promote R&D and commercialization of high-value technical textiles for sectors like healthcare and defense.

Way forward: 

• Adopt Sustainable Practices: Promote widespread use of regenerative farming, traceability technologies, and product circularity to enhance environmental responsibility and global competitiveness.
• Strengthen Innovation and Collaboration: Invest in R&D, encourage public-private partnerships, and leverage trade agreements to boost technological advancement and expand export markets.

Mains PYQ:

[UPSC 2023] Faster economic growth requires increased share of the manufacturing sector in GDP, particularly of MSMEs. Comment on the present policies of the Government in this regard.

Linkage: Indian textile industry is “one of the world’s largest manufacturing hubs” and projects its growth to $350 billion by 2030, with the potential to add 35 million new jobs. This PYQ directly addresses the importance of the manufacturing sector for economic growth and government policies supporting it, which are crucial for the textile industry to realize its leadership vision and achieve an “economic competitive edge”.

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