India may be one of the largest textile producers — but when it comes to export cost competitiveness, it’s losing ground to Bangladesh, Vietnam and China. The Economic Times+2knnindia.co.in+2
To fight back, the Ministry of Textiles is drafting a strategic roadmap that will:
- Benchmark India’s cost structure (raw materials, labour, logistics, energy, compliances, taxation) against leading exporters. The Economic Times
- Establish short-term (2 years), medium-term (~5 years) and long-term timeframes for reform. knnindia.co.in+1
- Focus on cost reduction, efficiency and higher value-addition. The Economic Times
Summary
India’s textile sector is gearing up for a major reset. The Ministry of Textiles is drafting a cost-roadmap aimed at restoring the country’s competitiveness in exports, especially against rivals like Bangladesh, Vietnam and China. The goal: jump from around US$ 40 billion in textile exports today to US$ 100 billion by 2030. The plan covers short-term (2 years), medium-term (5 years) and longer-term reforms across raw materials, labour, logistics, energy, innovation and trade.
Why India Needs This
- Labour productivity in India lags competitors by 20-40%. The Economic Times
- Raw-material, energy and logistics costs remain high compared to rivals. The Economic Times+1
- Bangladesh enjoys wage advantages and duty-free access to key markets; Vietnam benefits from trade-treaty access and flexible labour frameworks. The Economic Times
- India’s textile & apparel exports grew only 0.39% y/y in H1 FY26 — signalling urgency for reform. The Economic Times
Core Elements of the Roadmap
- Raw-Material Costs & Inputs: Review duties, quality control orders, imports of cotton, man-made fibres.
- Logistics & Energy: Improve transport, warehousing, power tariffs to lower production & export costs.
- Labour & Compliance: Rationalise labour laws, reduce compliance burden, boost productivity.
- R&D & Innovation: Push into technical textiles, smart fabrics, sustainable sourcing, digital-traceability. The Economic Times+1
- Trade & Market Access: Utilize free-trade agreements, export incentives and market diversification to bolster exports.
- Value Chain Integration: From fibre to fabric to fashion — build integrated hubs and cluster ecosystems that align with global sourcing trends.
Target & Timeline
- Current textile exports: about US $ 40 billion (approx). The Economic Times+1
- Target: US $ 100 billion by 2030. knnindia.co.in+1
- Time horizons: Short-term ≈2 years, Medium-term ≈5 years, Long-term beyond. knnindia.co.in+1
What It Means for Industry & Stakeholders
- Exporters will benefit from lower input costs, improved infrastructure, and stronger innovation support.
- Global buyers looking to diversify from China/Bangladesh may find India more attractive if reforms accelerate.
- Clusters such as apparel hubs and textile parks stand to gain from policy incentives and integrated value-chains.
- However, success depends on execution: infrastructure upgrades, logistics reform, labour productivity improvement and trade access must all align.
Challenges & Watch-PointsThis Matters: The Global Textile Landscape
As global brands re-evaluate sourcing amid rising geopolitical risk, tariffs and sustainability demands, countries like India, Bangladesh, Vietnam and China are locked in a cost-capability battle. India’s attempt to carve out a fresh cost-advantage could reshape supply-chains, jobs and export flows over the next decade.
For India, this is more than an industry reform — it’s a strategic thrust to reclaim global leadership in textiles and apparel. If the roadmap delivers, India could attract larger investment, build deeper value-chains and outperform its regional rivals.