8 May 2024 : Daily Answer Writing

Q1) Analyze the opportunities and challenges associated with the textile sector, with special reference to the PM MITRA scheme.

(250 Words/15 Marks)

ANS

Textile sector refers to the set of industries that are involved in research, design, development, manufacturing, and distribution of textiles.

The opportunities for India arising from textile sector can be seen from:

1. Balanced/inclusive growth:
2. a) Textile sector presents a significant opportunity to create formal jobs for India’s young demography, especially for women workers.

E.g., presently, women form around 60-70% of total workforce in the textile sector.

1. b) It can prove seminal to encourage a balanced regional development.

E.g., textile parks in Eastern India, tier 2-3 cities etc.

2. Post Covid-19, globally, the countries are relying on diversification of supply chains, which may open a window of opportunity for India’s textile sector.

E.g., China + 1 strategy (as per experts, even 1% share from China will translate to 10 billion USD opportunity for India).

3. Development of the textile sector augurs well for the growth of rural economy.

E.g., increase in income for traditional weavers/craftsmen; growth in textiles will also augment farm incomes.

4. As a sunrise sector, technical textiles will find multifarious opportunities in a growing economy.

E.g., application of technical textiles in engineering, agriculture, healthcare, industrial safety etc.

5. Trends towards sustainability supports innovation/growth in textile sector.

E.g., slow fashion (nature of fertilisers used, condition of weavers/farmers etc.); adoption of green textiles.

 

The realisation of the true potential of the textile sector is marred by a slew of challenges:

1. The competition from neighbouring South Asian and South East Asian countries has limited the India’s gain from diversification of textile supply chains and relocation of industries.

E.g., Bangladesh and Vietnam becoming textile hubs.

2. Unorganized nature (handlooms, handicrafts, sericulture) and lack of adequate infrastructure has thwarted the realisation of true potential of the textile sector.
3. Poor adoption of technology (Tex-Tech).

E.g., archaic production machinery acts as a barrier to transition towards Industry 4.0.

4. Import dependence:
5. a) Import of textile machinery adds to the capital cost, further reducing the efficiency of the sector.
6. b) Import dependency of India for ELS cotton reduces the export competitiveness of the sector.
7. India’s performance in leveraging the export potential of sunrise sectors like technical textiles, Man Made Fabrics (MMF) etc has been far from satisfactory.

E.g., in top 10 technical textiles, India’s share is just 0.6%.

6. High degree of adverse environmental implications.

E.g., as per some experts, apparel industry amounts to nearly 10% of global carbon emissions.

 

In light of the opportunities available in the textile sector, it is in imperative to work towards making it more effective and productive:

1. Dedicated policy measures.

E.g., PM-MITRA scheme for creating integrated value chains at one location; Cluster Based Initiative for ELS cotton announced in budget 2023; PLI for technical textile and MMF.

2. Enhancing the export competitiveness.

E.g., reduction in import duties of textile machinery; adoption of RoDTEP is a step in right direction.

3. Indigenous production of raw materials should be promoted.

E.g., Silk Samagra scheme to boost sericulture.

4. Express efforts are an imperative to reduce the element of adhocism, casualisation in the textile industry.
5. Skill upgradation and adoption of technology will make the sector more responsive to needs of both a large demography (jobs) and a large market (quality products).

Textile sector holds promises of inclusive growth alongside providing quality jobs for millions of young Indians; however, overhauling the sector to make India a global hub for production and exports is an imperative.