How India Can Boost Textile Jobs and Exports

Source: The post How India Can Boost Textile Jobs and Exports has been created, based on the article “India can be the world leader in textiles. Here’s how” published in “Indian Express” on 1st March 2025.

UPSC Syllabus Topic: GS Paper3- Economy-Industry

Context: The article discusses how India’s textile industry can create more jobs and boost exports. It highlights India’s advantages and challenges. It suggests building textile hubs in labor-rich areas, providing worker housing, improving efficiency, and using technology to compete globally and grow the sector.

For detailed information on Textile Sector in India read this article here

How Can the Textile Industry Help India Become Viksit Bharat by 2047?

1. The textile and apparel industry is India’s second-largest employer, providing 45 million direct jobs.
2. It is growing at 10% annually and is expected to become a $250 billion market by 2030.
3. If exports rise from $45 billion to $100 billion, the sector can create one million jobs every year until 2030.

What Are India’s Strengths and Challenges in the Global Textile Market?

1. Global markets are looking at India as China, Bangladesh, and Vietnam face issues like geopolitics and internal disruptions.
2. India has advantages like a stable economy, strong global relationships, a long textile tradition, and a young workforce.
3. However, India faces a 15-20% cost disadvantage compared to competitors due to lower labor efficiency.
4. The high worker attrition rate (10%) and the mismatch between job locations and labor availability further add to challenges.

What Government Policies Can Boost the Sector?

1. The government has introduced major schemes to support the textile industry:

• PM MITRA Parks – To create textile hubs where labor is available.
• PLI Scheme – To boost production and investment.
• RoSCTL Scheme – To make Indian exports globally competitive.
  2. The government can also support industrial housing by providing grants, FSI relaxations, or GST exemptions, reducing costs for workers and improving productivity.

What Can Be Done to Improve Jobs and Competitiveness?

1. Set up factories in labor-rich states like Uttar Pradesh, Bihar, Odisha, and Madhya Pradesh.
2. Reduce worker migration issues by providing housing near factories, like China.
3. Empower women, who make up 90% of the workforce, by ensuring safer and stable jobs.
4. Use automation wisely to increase efficiency without reducing jobs.
   5. With these changes, India can increase its global market share and become a leading textile exporter.

Question for practice:

Examine how government policies like PM MITRA Parks, PLI Scheme, and RoSCTL Scheme can address the challenges faced by India’s textile industry and boost its global competitiveness.