India's textiles need diversification for export growth, says CITI
India's textile and garment industry is looking to capitalize on a series of recently signed free trade agreements (FTAs) to boost exports and investment. The agreements with the United Arab Emirates (UAE), Australia, and the European Free Trade Association (EFTA) are seen as a major step forward.
In an exclusive interview with Bizz Buzz, Chandrima Chatterjee, Secretary General, Confederation of Indian Textile Industry (CITI) said, the EFTA pact, in particular, holds promise for India. Switzerland, an EFTA member, can supply India advanced machinery and technology, while India can export raw materials and intermediate products. This collaboration is expected to lead to high-quality and sustainable textile products. These FTAs are part of a larger government push to revitalize the textile sector. Textile exports have declined slightly in recent years, due to global challenges and competition from countries like China and Vietnam.
However, the government is taking steps to address these issues. The Production Linked Incentive (PLI) scheme offers financial incentives for investment in textile manufacturing, while new Quality Control Orders aim to improve product quality.
A key challenge for India is its dependence on cotton. While cotton is a traditional strength, synthetic fabrics are increasingly popular in the global fashion industry. To compete effectively, India needs to diversify its product basket and focus on man-made fibers (MMF) and their blends.
The recently signed FTAs can play a role in this diversification by providing easier access to raw materials and encouraging foreign investment in MMF production.
India is also working to adapt to the demands of the fast fashion industry, which emphasizes sustainability and ethical production. The government is supporting the use of sustainable fibers and renewable energy in textile manufacturing. By addressing these challenges and capitalizing on new trade opportunities, India's textile industry is well-positioned for future growth.
