Fri Jan 31 22:11:35 IST 2025: ## Indian Textile Exporters Face Global Competition, Urged to Modernize
**COIMBATORE, January 31, 2025** – India’s textile industry is facing significant challenges in competing globally, according to the latest Economic Survey. High costs, stemming from a fragmented value chain and complex procedures, are hindering Indian exporters’ ability to compete with vertically integrated firms in countries like China and Vietnam.
The survey highlights that India’s reliance on numerous small and medium-sized enterprises (SMEs) contrasts sharply with the efficient, fibre-to-fashion models employed by competitors. These competitors also benefit from simpler customs procedures and free trade agreements (FTAs) with major consumer markets, creating an uneven playing field for Indian exporters.
Further complicating the situation is the global shift towards sustainable sourcing. The European Union’s stringent environmental regulations, impacting nearly 20% of India’s exports, pose a particular challenge for smaller enterprises needing to adapt to sustainable production methods.
However, the survey also identifies opportunities. The increasing global demand for man-made fibres (MMF), currently comprising 77% of global fibre consumption, presents a significant market for Indian exporters. Despite a current 9.2% share of global MMF production, India possesses high potential to increase its share, mirroring the success of Vietnam, China, and Taiwan.
To capitalize on these opportunities, the survey recommends several key actions. These include: vertical integration within the MMF sector, increased investment in research and development, adoption of sustainable production techniques, and simplification of export procedures. Streamlining bureaucratic processes, the survey concludes, is a crucial step towards boosting India’s competitiveness in the global textile market.
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