Following an earlier report that examined the problems afflicting the textile industry, this newspaper’s Profit magazine turns to the solutions suggested by stakeholders across the supply chain—from cotton growers and spinners to garment manufacturers and exporters. What emerges clearly is that the remedies required are neither radical nor unachievable. Most of them demand only focused attention and a coherent policy approach from the government. Crucially, however, the state must understand that its role is to facilitate the industry, not to become entangled in permanent subsidisation.
It is fashionable to dismiss textiles as a sunset industry, and at first glance the argument appears persuasive. The sector may not deliver spectacular growth rates or become the next big driver of the economy. Yet such conclusions are simplistic. Textiles will continue to exist because clothing and household textile products—bedsheets, towels, upholstery and more—are basic necessities. The industry may not expand dramatically, but it will remain economically and socially relevant, providing livelihoods to millions across rural and urban India. The government must therefore recognise that while it may not extract significantly more growth from textiles, it cannot afford to neglect the sector altogether.
The problems begin at the very foundation of the textile value chain: cotton cultivation. Years of neglect have left farmers grappling with low productivity, pest resistance and declining profitability. There is an urgent need to develop new, pest- and disease-resistant seed varieties, or to import such varieties for immediate deployment. At the same time, policymakers must address the steady shift of farmers from cotton to sugarcane. This migration is not natural or inevitable; it is driven by a web of incentives that make sugarcane a more attractive and less risky crop. Unless these distortions are corrected, cotton cultivation will continue to shrink, undermining the entire industry.
Beyond agriculture, manufacturers face equally pressing challenges. Spinners, weavers and garment makers require reliable electricity at prices comparable to those in competing textile hubs such as Bangladesh and Vietnam. Without competitive energy costs, Indian manufacturers will continue to lose ground internationally. In return, manufacturers must also take responsibility for moving up the value chain—investing in design, branding and finishing, and focusing on exporting finished goods rather than raw or semi-processed materials.
One proven strategy that remains underutilised is leveraging the domestic market as a testing ground for exports. The assumption that foreign buyers are more demanding than Indian consumers is flawed. Domestic customers are often more price-sensitive and quality-conscious, making the local market an ideal training ground for firms aiming to compete globally. Strengthening this linkage could help Indian textiles improve both quality and competitiveness.
Power tariffs are not the only lever under government control. Taxation policy plays a decisive role as well. The state must abandon a predatory mindset that treats the industry as a revenue source to be squeezed at every opportunity. Instead, it should act like a careful steward—ensuring the sector’s health while drawing sustainable benefits from it. This shift in attitude is essential if textiles are to remain viable.
Ultimately, the government must decide whether the textile industry has reached a stage of maturity where high growth is unlikely. Even if that is the case, the sheer scale of employment across the supply chain—from farms to factories to ports—demands continued policy support. This decision will determine whether the state chooses to allocate resources toward stabilising and sustaining the industry, or allows neglect to erode one of the country’s oldest and most employment-intensive sectors.
Shafaqna Pakistan
pakistan.shafaqna.com
Note: Shafaqna do not endorse the views expressed in the article
