Why India’s Critical Textile Sector, Employing 4.5 Crore People, is Facing Challenges
Exports have suffered as a result of preferential tariff treatment for nations like Bangladesh and Vietnam as well as low-cost imports from China, while domestic production has slowed.
With more than 2% of the nation’s total GDP and more than 12% of the manufacturing sector’s GDP, the textile industry is one of India’s most important economic sectors. In addition, it is India’s second-largest employer after the agricultural sector. It is thought to directly employ 45 million people and indirectly employ 60 million more through related activities. The textile industry employs a large number of unskilled and semi-skilled workers, is highly labor intensive, and is a significant employer of women.
The value chain in the textile industry is diverse and extends from fiber to ready-to-wear clothing. With a 4% share of the global textile and apparel trade, India is the sixth-largest exporter of these goods worldwide. The government has taken a number of actions to promote the sector, including capacity building, technology upgradation, and boosting employment generation, taking into account the potential of the textile sector to generate employment and export revenues. The Production Linked Incentive Scheme, which aims to encourage investments in apparel and fabrics made of synthetic materials, was introduced in September 2021.
Recently, though, the industry has encountered difficulties. Recently, domestic production has slowed down. While preferential tariff treatment for nations like Bangladesh and Vietnam has hurt exports, cheap imports from China and other nations are hurting the domestic industry in some sectors.
The government is dedicated to boosting India’s textile exports from the current $44.4 billion to $100 billion over the following five years. To ensure a successful and integrated textile industry, it will be necessary to address the challenges the industry is currently facing.
Reference: https://theprint.in/macrosutra/why-indias-critical-textile-sector-employing-4-5-crore-people-is-facing-challenges/1299489/
