India’s textile and apparel (T&A) sector, spanning from farm to fashion and foreign markets – the “5Fs”, is a critical pillar of the Indian economy. The sector contributes 2.3 percent to GDP, 13 percent to industrial output, and 12 percent to total exports (Economic Survey 2024–25). It employs over 45 million people directly. Despite its historical importance, the sector faces numerous challenges like low cotton productivity and limited value addition in apparel production to stiff competition from countries like Bangladesh and Vietnam.
Globally, the T&A sector has shifted towards man-made fibres (MMFs) like polyester and viscose, outpacing cotton. Bangladesh and Vietnam have capitalised on these trends, capturing increasing global market shares in the apparel segment, while India’s share has remained stagnant. Despite its potential, India has failed to adapt, missing opportunities created by China’s waning dominance in the apparel market.
To achieve its ambitious goal of increasing T&A exports from USD 34.8 billion in 2023-24 to USD 100 billion by 2030, India must integrate the 5Fs across the value chain, focusing on value-added, fashion-driven exports and boosting MMF processing. Expanding market access through trade agreements, improving existing schemes, and fast-tracking PM MITRA parks will help India compete effectively on the global stage.
