India develops detailed cost roadmap for textile sector

India is developing a detailed cost roadmap for its textile sector to align domestic production and export costs with global benchmarks, as the country faces growing competition from Bangladesh, Vietnam, and China.

The roadmap will include short-term (two-year), medium-term (five-year), and long-term strategies. It will specifically focus on analyzing cost structures across raw materials, compliance, and taxation. The move aims to address India's declining price competitiveness in the global textile market, which is largely driven by high logistics and energy costs compared to its Asian peers.

The roadmap aims to benchmark India's costs against key international competitors and implement measures to lower production and export expenses while reducing manufacturing waste. The government is targeting $100 billion in textile exports by 2030, up from the current $40 billion.

As part of the initiative, the Textiles Ministry plans to strengthen research and development in fibers, fabrics, technical textiles, sustainable materials, and digital traceability. A new committee has also been established to explore ways to integrate innovation into branding and design, while supporting startups and design houses focused on next-generation textiles.

Sanjay Jain, Chairman, National Expert Committee on Textiles, Indian Chamber of Commerce observes, eliminating Quality Control Orders, streamlining labor laws, and finalizing a free trade agreement with Europe could significantly cut production costs. According to the Economic Survey 2025, costs in the textile industry are expected to rise in the coming years due to a global shift toward sustainable sourcing, further underlining the urgency of India’s cost competitiveness strategy.