GTRI raises concerns about Steady Rise in India’s Garments and Textiles Imports

Posted 22 Jul 2024

2 min read

India’s textile industry

Current value: India's textile industry, valued at US$ 250 billion, provides jobs to 50 million people. India is present across all parts of the value chain.
Global Trade Contribution: India contributes around 4.6% of the global trade in textiles and apparel.
Garment export (2013 to 2023): India's exports grew only by 4.6 % against Vietnam's by 81.6% and Bangladesh's by 69.6%

Complex Export Procedures: Outdated and intricate procedures by the Directorate General of Foreign Trade (DGFT) and customs hinder exports.
Import Restrictions: High import duties and mandatory quality norms on raw materials like polyester and viscose staple fibers complicate imports, making it hard to compete globally.
Weak Weaving and Processing Sectors: Small, informal weaving and processing units lack advanced technology and scale, leading to higher costs and lower quality compared to Chinese counterparts.
Fast Fashion Impact: Frequent changes in fashion affect the fabric and input consumption, making old norms impractical.

Modify PLI Scheme For Textile Sector: Make it more appealing to investors.
Streamline Import Procedures: For example, The DGFT should issue import entitlements based on value terms, similar to Bangladesh, instead of looking into the actual consumption of the inputs.
Strengthen Legal Framework: Enhance the enforcement of contracts to provide a more secure business environment
Other: Focus on enhancing synthetic apparel production, implement strategies to become compliant with the fast fashion industry, etc.

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