New Delhi: India is preparing a comprehensive cost roadmap for the textiles sector to align it with global benchmarks, as the country loses ground to rivals such as Bangladesh, Vietnam and China on price competitiveness. A short-term plan for two years, a medium-term plan for five years and a long-term plan would be part of the roadmap with focus on mapping cost structures across raw materials, compliances and taxation.
Besides expensive raw materials, India’s textile sector faces cost disadvantages compared to competitors such as Bangladesh, Vietnam, and China due to high logistics and energy costs.
“The idea is to benchmark India’s costs against key global competitors and work on measures to lower the production and export costs and reduce wastage in manufacturing,” said an official. India is eyeing $100 billion of textile exports by 2030 from the current level of around $40 billion.
Both Bangladesh and Vietnam have better labour productivity, more flexible labour laws, access to duty free raw materials from many parts of the developed world and duty-free access to Europe. Vietnam also has access to China market duty free while Bangladesh has a wage advantage over India.
Labour productivity in India’s competitors is 20-40% higher, industry insiders said. As part of the exercise, the textile ministry will also work on mechanisms to strengthen research and development in fibres, fabrics, technical textiles, sustainable materials and digital traceability.
It has set up a committee to look at ways to integrate innovation into branding and design for global markets and encourage incubation of start-ups and design houses focusing on new-age textiles. “Extensive consultations with industry associations, banks, innovation labs, start-ups and international experts would be done,” said the official.
India’s textile and apparel exports rose 0.39% year-on-year in the first half of FY26. “Removing Quality Control Orders, labour law rationalisation and a free trade agreement with Europe will help reduce costs in a major way,” said Sanjay Jain, chairman, Indian Chamber of Commerce, National Expert Committee on Textiles.
The Economic Survey FY25 said that the costs for the textile industry are likely to rise over the coming years, driven by a global structural shift towards sustainable sourcing.>
