Readymade garments accounted for the largest share of 41 per cent, with exports worth ₹1.2 lakh crore (~$14.34 billion), followed by cotton textiles (34 per cent) and man-made textiles (14 per cent).

The survey document projected India's real gross domestic product (GDP) for FY25 at 6.5-7 per cent.

The report identified several challenges for the textile and apparel sector.

As most of the country’s textile and apparel production capacity is on account of micro, small and medium enterprises (MSMEs), which account for over 80 per cent of the sector, and the average scale of operations is relatively small, efficiency and economies of scale from large-scale modern manufacturing are limited.

The fragmented nature of India's apparel sector, with raw materials sourced predominantly from Maharashtra, Gujarat and Tamil Nadu, while spinning capacities are concentrated in southern states, contributes to higher transportation costs and delays.

Other factors, like India's heavy dependence on imported machinery, except in the spinning segment, inadequate availability of skilled manpower and technological obsolescence also act as significant constraints.

The central government will set up seven PM Mega Integrated Textile Region and Apparel (MITRA) Parks, with a budget of ₹4,445 crore ($0.531 billion), between FY22 and FY28 in Tamil Nadu, Telangana, Gujarat, Karnataka, Madhya Pradesh, Uttar Pradesh and Maharashtra.

Launched with an outlay of ₹1,480 crore ($0.177 billion) for FY21 to FY24, the National Technical Textiles Mission (NTTM) focuses on increasing the use of technical textiles in various sectors.

It has four components: research innovation and development; promotion and market development; education, training and skilling; and export promotion. It has been extended till March 2026, with a sunset clause until March 2028.

NTTM has seen 137 approved research projects worth ₹474 crore ($56.65 million) so far, said the Economic Survey.

The National Handloom Development Programme (NHDP) approved an outlay of ₹998 crore ($119.3 million) between FY22 and FY26.

In FY24, the government initiated steps to set up 96 small handloom clusters. Nine mega handloom clusters were also set up.

Fibre2Fashion News Desk (DS)