Highlighting the significant impact of raw material costs on India’s textile industry, Kulin Lalbhai, Vice Chairman, Arvind, and Chairman, Gujarat Confederation of Indian Industry (CII), emphasizes, import tax continues to hinder the industry's competitiveness. Removing these import duties can help lower production costs and enhance value addition within the domestic textile sector, he opines.

India possesses considerable potential in the global manmade fibers (MMF) market, which accounts for 60 per cent of global trade. However, the Indian MMF industry remains underdeveloped due to high raw material costs.

The industry needs to focus on areas where it can achieve local value addition and ensure a level playing field in terms of costs, Lalbhai states. Without cost competitiveness, the manmade fibers sector will not be able to scale up, he adds.

To help boost the industry growth, Lalbhai emphasizes on the importance of attracting large global investors, particularly from countries like Taiwan and Vietnam. He stresses on the need to create a conducive investment environment, including the development of plug-and-play infrastructure within the PM MITRA (PM Mega Integrated Textile Region and Apparel) parks.

Lalbhai also highlights the critical role of free trade agreements (FTAs) with Western nations in addressing the 11 per cent duty disadvantage India faces in exports to the European Union and the UK. These FTAs could unlock significant growth potential for the Indian textile sector.

Sivaramakrishnan Ganapathi, Vice Chairman and Managing Director, Gokaldas Exports, points out, the primary challenge facing the apparel industry is capacity. He emphasizes on the need to increase production capacity and workforce in key apparel clusters to boost exports.