Challenges Faced by the Textile Industry in India

India has a rich and varied history when it comes to textiles. Right from being famous for muslin to the astounding embroidery works, India offers a rich variety of textiles from different parts of the country. Whether hand-spun or commercial, you will always find a market and a source in India.

Some of the challenges faced by the Indian textile industry include

1)     Inflationary pressures causing rise in cost of human capital and material cost

2)     Forex pressure thereby making import of machinery expensive

3)     High cost of electric power making it difficult to compete with cheaper markets like Vietnam etc

4)     Governmental policies subsidizing small and medium enterprises. Hence, they did not scale up to ensure that they continued to benefit from the governmental policy support

5)     Lack of diversification into multiple segments and categories like sportswear, fast fashion etc

6)     Lack of trade pacts which makes exports uncompetitive compared toother countries like Bangladesh and Vietnam

7)     Lack of focus on research and innovation leading to inefficiency in the system as modern practices are not adopted.

8)     Geopolitical pressures like wars, sanctions and international events

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