India’s apparel sector faces significant headwinds despite its comprehensive value chain. The industry contributes Rs. 3.07 lakh crore in GVA and employs millions, yet India’s apparel exports remain only about 3 per cent of global share. Growth is constrained by fragmentation of small MSME units, complex regulatory norms, high capital and input costs, inverted GST on MMF yarn, poor logistics and a mismatch between India’s cotton centric apparel exports and rising global demand for MMF knitwear in key markets like the EU and US, segments worth an estimated USD 91 billion.
This issue of AF-TAB explores how India can realign its apparel exports with global trends and whether the PM MITRA scheme with its Rs. 4,445 crore outlay and seven mega textile parks can provide the infrastructure, scale and investment needed to transform the sector. Timely execution, export-focused reforms, and a strategic shift towards MMF-based production will be key to unlocking this opportunity.
