India’s Textile Exports: Bold Reforms Needed To Hit US$ 100 Billion By 2030
India has set an ambitious target of increasing its textile and apparel (T&A) exports from US$ 34.8 billion in FY24 to US$ 100 billion by 2030. However, this goal appears challenging unless substantial, game-changing reforms are introduced. Historically, India’s T&A exports have grown from US$ 11.5 billion in FY01 to US$ 34.8 billion in FY24, maintaining a modest 4% share of the global textile export market, which stood at US$ 774.4 billion. The apparel segment, which accounts for about 42% of T&A exports, has risen from US$ 5.5 billion in FY01 to US$ 14.5 billion in FY24, yet its global market share has remained stagnant at approximately 3% over the years.
Meanwhile, competitors such as Bangladesh and Vietnam have surged ahead. Between 2000 and 2023, Bangladesh’s share in global apparel exports jumped from 2.2% to 9.6%, while Vietnam’s rose from 1% to 5.8%. A key driver of this shift was China’s declining dominance, with its market share slipping from 34.8% in 2010 to 29.8%, partly due to trade tensions with the US. Despite this shift, India has not fully capitalized on the opportunity to expand its apparel exports and fill the gap left by China.
A major challenge lies at the cotton production level. The introduction of genetically modified (GM) Bt cotton hybrids in 2002 significantly boosted India’s cotton production, increasing output from 13.6 million bales in 2002-03 to 39.8 million bales by 2013-14—a 193% rise. This “gene revolution” also improved productivity by 87%, from 302 kg/hectare in FY03 to 566 kg/hectare in FY14, while the area under cultivation expanded by 56%.
However, production has been steadily declining since 2014, and it is projected to drop to 30 million bales in FY25, marking a 15-year low. India is now poised to become a net importer of cotton, with imports expected to reach 2.6 million bales, surpassing exports of just 1.5 million bales in marketing year 2024-25—a stark contrast to the peak of 11.7 million bales in FY14.
A key reason behind this decline is the delayed approval of next-generation herbicide-tolerant Bt cotton seeds, despite clearance from the Genetic Engineering Appraisal Committee. Furthermore, India’s cotton-to-man-made fibre (MMF) ratio stands at 60:40, in contrast to the global average of 30:70, highlighting a shift towards MMF that India has yet to embrace fully.
Although India has over one lakh garment factories, nearly 80% operate in the decentralized sector, limiting scalability and efficiency. Slow adoption of modern technology and weak value chain integration are also critical barriers preventing the country from realizing its full export potential.
The global apparel market is projected to reach US$ 2.37 trillion by 2030, presenting a major opportunity. While the Pradhan Mantri Mega Integrated Textile Region and Apparel (PM-MITRA) scheme aims to develop integrated textile parks, high land requirements have largely excluded micro, small, and medium enterprises (MSMEs), limiting their participation. To overcome these challenges and achieve the US$ 100 billion export target, India must adopt a strategic, reform-driven approach.
First, the garment sector must transition into a fashion-driven industry, with a strong emphasis on MMF-based apparel. Incentivizing MMF production and removing non-tariff barriers, such as the quality control orders on MMF, will be critical. In 2024, MMF raw materials in India were about 20% costlier than in competing nations like Bangladesh, China, and Vietnam, according to Amitabh Kant. Second, the PM-MITRA scheme must be accelerated to establish integrated textile hubs, enhancing manufacturing scalability and efficiency.
Third, securing free trade agreements (FTAs) with key markets such as the European Union (EU) and the US—destinations that account for nearly 66% of India’s apparel exports—will be essential. Indian apparel currently faces tariffs of 9.7% in the EU and 11.47% in the US.
In comparison, Bangladesh benefits from zero-duty access under the EU’s Generalized System of Preferences Everything but Arms arrangement, while Vietnam enjoys preferential tariffs of just 1.66% under the EU-Vietnam FTA. These disparities place Indian exports at a disadvantage, underscoring the urgency of expediting trade negotiations.
Additionally, India should explore emerging markets such as Japan, Russia, Brazil, and South Korea, which present promising opportunities for categories like women’s western wear, intimate wear, swimwear, and outerwear.
Fourth, improving cotton productivity and fibre quality must be a priority. Despite being one of the world’s largest cotton producers, India has not fully leveraged this advantage. Streamlining the approval process for GM crops and implementing a single-window clearance system will accelerate the adoption of high-yield, pest-resistant cotton varieties.
Furthermore, expanding irrigation, promoting high-density planting techniques, and investing in precision farming could help India bridge the productivity gap, which currently stands at 435 kg/hectare—far below China’s 1,945 kg/hectare and Brazil’s 1,839 kg/hectare.
By addressing these fundamental issues, India could take a significant leap toward its ambitious T&A export goal. However, achieving this vision will require bold policy decisions and strong government intervention. Without decisive reforms, the US$ 100 billion target may remain an unattainable dream.
