As Western countries actively seek to ‘de-risk’ their supply chains from China, India emerges as a prime contender to capture a significant chunk of this re-routed trade. But can India truly capitalize on this opportunity, or will it be caught in a tangle of its own making?

The ‘China Plus One’ strategy, adopted by many companies to diversify their sourcing, is gaining momentum. This strategy aims to reduce dependence on China by adding another manufacturing hub to the mix. And India, with its vast labor pool, cotton production prowess, and growing manufacturing capabilities, is a natural choice.

Where India can stitch success

As one of the largest producers of cotton globally, India has a significant advantage in raw material sourcing. A large and relatively inexpensive workforce makes India attractive for labor-intensive textile manufacturing. Add to this, government initiatives like the Production Linked Incentive (PLI) scheme for textiles that are aimed at boosting domestic manufacturing and attracting foreign investment. For example, Arvind Limited has invested heavily in modernizing its facilities and expanding its product range to cater to international brands. Similarly, Welspun India,, the leading home textile manufacturer, has successfully captured a significant share of the global market through innovation and quality.

Table: Comparative investments in textile industry ($ billion)

Sources: Source: Statista, Invest India, various industry reports

In fact numerous opportunities are waiting to be unravelled for India. In garment manufacturing, India can become a major hub, especially for Western brands looking to diversify their sourcing. With growing demand for specialized fabrics in sectors like healthcare and automotive, India can carve a niche in technical textiles. What’s more, India's rich textile heritage and design talent can be leveraged to create unique, high-value fashion products.

Growth challenges

However, the path to success is not easy as infrastructure bottlenecks are a major dampener. Inadequate infrastructure, including unreliable power supply and logistical challenges, can hinder production and increase costs. Lack of skilled labor in areas like design, technical textiles, and modern manufacturing techniques too needs to be addressed. Also complex regulations and bureaucratic hurdles too can deter investment and slow down business operations.

Therefore, while India has the potential to become a textile and apparel powerhouse, it needs to address its challenges proactively. By improving infrastructure, upskilling its workforce, and streamlining regulations, India can truly seize this opportunity and weave its way to dominance in the global textile industry.