Backed by the 'China Plus One' sentiment globally, India’s textile exports is expected to grow by 81 per cent to $65 billion by 2026 from the pre-Covid level of around $36 billion in 2019, said a report by the Confederation of Indian Industry (CII) and global consulting firm Kearney. This jump is likely to generate 7.5-10 million new jobs.
A large chunk of this targeted increase, or around $16 billion may come from the China Plus One sentiment due to India’s relatively large strategic depth compared with Vietnam or Bangladesh, the report said. “We believe with the right actions from the industry majors and robust execution of government schemes, India can hit $65 billion in exports (implying 9-10 per cent compound annual growth rate) by 2026. This, coupled with growth in domestic consumption, could propel domestic production to reach $160 billion,” said Siddharth Jain, Partner, Kearney.
Other key areas where the growth is expected include fabrics where the target is a $4 billion jump by positioning India as a regional fabric hub, starting with cotton wovens and then extending to other sub-categories. In home textiles too, the target is an increase of $4 billion by building on existing advantages to expand the global customer base. On man-made fiber and yarn a $2.5 billion to $3 billion jump is expected with a focus on gaining share in MMF (man made fiber) products. On the other hand, in technical textiles around $2 billion jump is targeted by building capabilities in select key sub-segments on the back of potential domestic demand growth.
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