Indian Textile Industry Faces Challenges


22 August 2023, Mumbai

  • Fluctuating Cotton Prices
    • Despite ample domestic cotton availability, cotton prices have been fluctuating wildly, causing problems for the textile industry.
    • This has led to a decline in cotton textile exports, including ready-made garments.
    • Cotton yarn exports have plummeted by 50%, causing production halts and job losses.
  • 11% Import Duty
    • The 11% import duty on cotton has also made it difficult for the textile industry to compete in the global market.
    • This is because cotton is a relatively inexpensive raw material, and the import duty makes it more expensive for Indian textile manufacturers to import cotton.
  • Initiatives to Address Challenges
    • The Union Minister of Textiles, Piyush Goyal, has established a Textile Advisory Group to address the challenges facing the industry.
    • The group has proposed a number of measures, including removing the 11% import duty and providing export benefits to the textile industry.
  • Industry Appeals for Stability
    • The chairman of the Southern India Mills’ Association (SIMA), Ravi Sam, has called on the Cotton Association of India (CAI) to align its estimates with those of the Committee on Cotton Production and Consumption (COCPC).
    • CAI has overestimated the cotton crop size for 2022-23, which has pushed up cotton prices.
    • This has made it difficult for the textile industry to compete in the global market.
  • Import Duty Removal and Global Competitiveness
    • Ravi Sam has also called on the government to remove the 11% import duty on cotton.
    • He believes that this would help to stabilize cotton prices and make the Indian textile industry more competitive in the global market.


The Indian textile industry is facing a number of challenges, including fluctuating cotton prices and an 11% import duty on cotton.

The government has taken some steps to address these challenges, but more needs to be done.

The textile industry is a major contributor to the Indian economy, and it is important to take steps to ensure its long-term growth and competitiveness.

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