In the face of global uncertainties like the slowdown in global manufacturing, especially in Europe and parts of Asia, supply chain disruptions, and weak external demand, the Confederation of Indian Textile Industry (CITI) Chairman, Shri Rakesh Mehra, congratulated the government on a strong GDP growth projection of 6.4% for FY 2025, as per the Economic Survey 2024-25.
According to the survey, the Indian textile industry faces several major obstacles to its expansion, such as a level playing field in comparison to its international rivals, onerous export regulations that raise costs and slow down logistics, a lack of foreign direct investment (FDI), and a significant reliance on imported textile equipment. The poll also highlights the potential cost increases for the textile sector in the upcoming years as a result of the global shift towards sustainable sourcing and adherence to strict ESG (Environmental, Social, and Governance) standards.
“The industry and the government have been actively discussing a number of these issues. The Ministry of Textiles, led by the Hon. Minister of Textiles, Shri Giriraj Singh, is providing the industry with crucial assistance in overcoming these obstacles. According to the poll, the Indian textile industry has a bright future, and we are optimistic that the government will keep enacting sensible policies to support this expansion,” said Shri Mehra.
To meet the increasing global demand for man-made fiber (MMF) textiles, the survey emphasizes the need for vertical integration and substantial investment in research and development (R&D). The Government’s Production-Linked Incentive (PLI) scheme is already fostering growth in the MMF sector, while the PM MITRA scheme is set to create world-class, standardized infrastructure that will enable the industry to adapt to evolving ESG requirements.
“While these initiatives have helped in moderate growth, strong investment incentivisation, specially for the MSMEs is needed for the targeted growth in this sector. There is a strong case for launching PLI 2.0 with a lower investment threshold and broader product coverage to benefit a larger segment of the industry. Additionally, expediting the implementation of PM MITRA parks will be crucial to ensuring the timely and effective impact of the scheme,” added Shri Mehra.
He further informed that CITI has already submitted various policy recommendations to Government for driving growth in the Industry and we are hopeful that Government will consider our suggestions for the Budget 2025-26.
The Economic Survey 2024-25 reinforces the need for targeted policy interventions in the textile sector, including regulatory simplification, enhanced investments in technology and skill development, and stronger sustainability initiatives. As global trade dynamics continue to evolve, CITI remains committed to collaborating with the Government and industry stakeholders to ensure that India’s textile sector remains competitive, resilient, and future-ready.