The contribution of the textile industry to the country’s GDP is projected to double to 5 percent from the current 2.3 percent by the end of this decade, according to a recent report by CII and Primus Partners.
Further, the Gross Value Added (GVA) is expected to see a consistent growth rate of 9 percent during the period 2021 – 2028, the report said.
“India, the fifth largest economy globally, has a share of just about 5% of the international trade in textiles and apparel. The Indian textile industry has a vast potential waiting to be explored, which demands an integrated approach simultaneously focusing on greater value addition, enhanced competitiveness and sustainable industry practices,” said Dr. Praveen Sinha, Chairman, CII Western region and CEO and MD, Tata Power Company.
The report said that the Indian textile industry is expected to achieve the 250 billion dollar milestone by 2030, along with textile and apparel exports expected to increase to USD 65 billion by FY 2026.
In terms of segments, the report stated that technical textiles are expected to record a projected CAGR of 15 percent.
The study also highlighted the key roadblocks hampering industry growth including a highly fragmented supply chain, the need for quality training programs, and overreliance on labour-intensive technologies.
Sharing a way forward, the report said, digital technologies, regular upgrades, and blockchain-based supply chain traceability along with collaborations with e-commerce platforms, including ONDC, will play a pivotal role in achieving industry goals.