Demand Warp, Quality Weft: Is The Textile Sector Ready For A Reality Check?

Take this example of Japan. While the country’s import demand for garments and finished apparel has been rising, several Indian exporters have failed to make any inroads into the market due to quality issues.

A major quality overhaul is on the cards for the industry that has been a lifeline for both entrepreneurs and traditional artisans. The Textiles Ministry is now planning to carve a policy mechanism that will help the exporting units to up the ante in global trade. 

India's textile sector has a competitive edge over other countries, courtesy: the abundance of raw materials, skilled manpower, and the cost of production.

But quality concerns continue to plague the industry.

The impending quality check has been hovering over the industry that is projected to grow at a 10% CAGR to reach US$350 billion by 2030 (the exports are expected to reach US$100 billion).

Quality Standards

“The Centre is aware of the fact that often our exporters do not meet the quality standards, and this is causing a barrier. We are looking to come up with measures to address this and handhold the exporting units through this process,” a senior official of the textiles ministry told The Secretariat.

On an immediate basis, the Textiles Ministry is planning to host a mega conference early next year — possibly in January. This would include stakeholders and officials from the industry. “This is aimed at transforming the sector so that it remains a crucial competitor in the global market," the official said. 

Now, with the Central government withdrawing the quality-control orders (QCO) on polyester fibre and yarn, the textile and apparel industry is in a better position to stitch trade gaps and, thereby, boost the growth scale.    

Diversification Of Markets

Recently, at the inauguration of the Special Handloom & Handicraft Exhibition in New Delhi, Union Minister for Textiles, Giriraj Singh, reassured that exports have not declined amid the US tariff bottleneck.

"We've opened in 40 new countries under the guidance of the Prime Minister. Therefore, we're looking at the entire world comprehensively. We haven't left out the US, but we're trying to add many new countries,” Singh said.

As the country has been systemically promoting its indigenous products and enhancing trade ties, with a high-level delegation from the Ministry of Textiles recently concluding in Georgia a multi-sectoral engagement aimed at strengthening trade in textiles and apparel, among other sectors, a tab on the quality frontier will not only benefit the sector but also the artisans. These initiatives come at a time when the country has been diversifying trade amid tariff tensions and boosting the market for domestic products, including the flagship "5-in-1 Silk Stole".

The Post-Tariff Recalibration

As the US tariffs impacted India’s labour-intensive sectors, the government approved ₹45,060 crore, including ₹20,000 crore in credit guarantees, on bank loans, in a bid to support exporters, particularly in textiles, jewellery, and seafood. This will enhance the global competitiveness of Indian exporters and support trade diversification.

"Ever since the US imposed high tariffs on India, we have been diversifying trade to other global markets. So, now we may have to do some recalibration to meet the specific requirements of certain regions," says Bhaskaran S., who has been associated with the sector for several decades. "This is a wide-ranging sector, and it is witnessing a paradigm shift in global trade trends. The artisans now have to adapt to different market preferences, and reorient their products accordingly," he further says.

The Growth Curve

The textile industry is projected to grow at a 10% CAGR to reach US$350 billion by 2030 (the exports are expected to reach US$100 billion). However, the real growth would only be determined by a combination of factors, including the production methods and quality standards.