India needs institutional reforms to regain textile trade dominance and global market share
India, historically a dominant player in global textile trade, needs significant institutional reforms to regain its competitive edge. Despite its rich heritage and large workforce, India's share in global apparel exports has declined, while countries like Bangladesh and Vietnam have surged ahead. Challenges include fragmented supply chains, lack of modern infrastructure, and policy inconsistencies. The article emphasizes the need for a comprehensive strategy, including skill development, technology adoption, and robust policy frameworks, to integrate India into global value chains. Strengthening institutions and fostering a conducive business environment are crucial for India to leverage its demographic dividend and reclaim its position in the textile industry.
Key Points
- India, despite its historical dominance, has lost global textile market share to competitors like Bangladesh and Vietnam.
- Fragmented supply chains, outdated infrastructure, and policy inconsistencies hinder India's textile competitiveness.
- Institutional reforms, skill development, and technology adoption are crucial for integrating India into global textile value chains.
- A comprehensive strategy is needed to leverage India's demographic dividend in the textile sector.
- Strengthening the business environment and policy frameworks are essential for India to regain its leadership in textile trade.
Exam Facts
- India's share in global apparel exports declined from 4.6% in 2015 to 3.7% in 2023.
- Bangladesh's share increased from 5.9% to 7.2% in the same period.
- The textile sector employs 45 million people in India.
- Vietnam's share increased from 3.7% to 6.4% in the same period.
Read it. Retain it. Recall it.
Get spaced-repetition flashcards, daily quizzes and offline access — free on Android.