Textile Industry Challenges: Boosting Exports

New Delhi, Jan 31 (PTI) The Economic Survey on Friday pitched for addressing challenges being faced by textile exporters such as complex procedures to promote the sector's growth.

It said unlike its competitor countries like China and Vietnam, India's textile exporters are constrained by complex procedures.

"In India, textile exporters are constrained by complex procedures, which, for instance, require exporters to meticulously account for every square centimetre of fabric, buttons and zippers used," it said.

It added that simplification, consolidation, and elimination of processes that consume the financial and managerial bandwidth of our exporters is a low-hanging fruit, it said.

Emphasising that this is the "Time to be deft about our warp and weft!" the survey said, "addressing these challenges can significantly reduce costs and ease the burden on exporters, helping them become more efficient and competitive.

Further, it said in general, the costs for the textile industry are likely to rise over the coming years and a global structural shift towards sustainable sourcing would drive this.

Often, such a shift is necessitated by regulatory changes. The EU, for instance, has as many as 16 pieces of legislation spanning the entire fashion value chain, which came into force between 2021 and 2024.

As the EU accounts for nearly 20 per cent of India's exports, such a shift poses a challenge for small enterprises who need to shift to environmentally sustainable production methods, it added.

Commenting on the survey, Rumki Majumdar, Economist at Deloitte, said that exports have been a concern, but the sector remains agile.

"The services industry has been a key driver of growth, while India's exports, despite global challenges, have expanded into new and diverse markets," she said.