Introduction

The Government of India is preparing a comprehensive cost roadmap for the textile sector to bring domestic production costs in line with global standards. This initiative comes at a time when India faces increasing competition from textile-exporting countries such as Bangladesh, Vietnam, and China.

Status of India’s Textile Industry

Economic Contribution

India’s textile industry plays a crucial role in the national economy. It contributes 2.3% to the GDP, 13% to industrial production, and 12% to total exports, underscoring its importance in manufacturing and trade.

Export Performance

During 2023–24, India exported USD 34.4 billion worth of textile products. Apparel had the highest share at 42%, followed by raw and semi-finished materials at 34%, and non-apparel finished goods at 30%.

Employment Generation

The textile sector is the second-largest source of employment in India after agriculture. It provides direct employment to more than 45 million people, many of whom are women and rural workers.

Global Standing

India ranks 5th globally in the textile market as of 2024. The domestic textile market is projected to expand from USD 174 billion to USD 350 billion by 2030.

Production Capacity

India produces nearly 22,000 million garments every year, reflecting robust manufacturing capabilities. Approximately 80% of this capacity is located in MSME clusters, highlighting the decentralized structure of the industry.

Factors Hindering India’s Global Competitiveness

High Input Costs

Restrictions on polyester and viscose imports due to Quality Control Orders (QCOs) have increased reliance on domestic polyester fibre, which is 33–36% costlier than Chinese alternatives. This raises production costs for Indian manufacturers.

Low Labour Productivity

Labour productivity in India remains 20–40% lower than in Bangladesh and Vietnam, reducing efficiency and competitiveness.

Regulatory and Trade Barriers

Rigid labour regulations and the absence of Free Trade Agreements (FTAs) with key markets—especially the European Union—prevent India from enjoying the duty-free access that competitor countries receive.

Competitive Advantages of Other Countries

Bangladesh benefits from lower labour costs and preferential market access, while Vietnam enjoys stronger FTAs, flexible labour rules, and duty-free access to Chinese raw materials.

Technological Limitations

A large segment of India’s textile industry consists of MSMEs that struggle to access affordable capital. This results in outdated machinery, low productivity, and reduced innovation—a situation often referred to as MSME dwarfism.

Workforce and Compliance Challenges

There is a shortage of workers skilled in modern textile technologies, especially in technical textiles, design, and marketing. Environmental regulations and labour compliance also impose additional burdens on smaller units.

Reforms Required to Enhance India’s Competitiveness

Government’s Proposed Roadmap

a. Three-Phased Strategy

The government plans to introduce a cost roadmap divided into short-term (2 years), medium-term (5 years), and long-term phases to benchmark and reduce costs across the value chain.

Focus on Cost Reduction

The roadmap will aim to reduce raw material costs, compliance costs, taxation burdens, and manufacturing wastage.

Promoting Innovation

A dedicated committee will work to:

• Strengthen research and development in technical textiles and sustainable materials.

• Integrate innovation into branding and design.

• Support textile start-ups and design houses.

d. Long-Term Vision

The government aims to achieve USD 100 billion in textile exports by 2030 and set up global innovation centres to develop new-age textile technologies.

Strategic Reforms Needed

a. Enhancing Cost Competitiveness

India must modernise port infrastructure, simplify export documentation, and ensure access to affordable and reliable power. Rationalising import duties on cotton and man-made fibres is essential for cost parity with global competitors.

b. Trade and Regulatory Reforms

Key FTAs, especially with the European Union, must be expedited. Labour laws under the four Labour Codes—Wages, Industrial Relations, Social Security, and Occupational Safety—should be tailored to the needs of the textile sector. A stable GST framework is also crucial.

c. Strengthening Productivity and Innovation

Bridging the productivity gap requires investment in skill development. MSMEs need better access to credit for adopting Industry 4.0 technologies, such as automation and AI.
The Economic Survey FY25 warned that textile costs will rise globally due to a shift toward sustainable sourcing, making innovation and efficiency even more urgent.

d. Sustainability and Branding Measures

The government and industry must adopt green technologies, promote water recycling, and embrace circular economy models. Strengthening branding initiatives like India Handloom and India Craft will help promote India’s textile heritage globally.

Conclusion

A comprehensive cost roadmap—integrating short-term, medium-term, and long-term strategies—can transform India's textile sector. By reducing input costs, enhancing productivity, promoting R&D and sustainability, and securing critical FTAs, India can work towards achieving its target of USD 100 billion in textile exports and strengthening its global competitiveness by 2030.

The international community has convened in Belém, located in the Brazilian state of Pará, for the 30th Conference of the Parties (COP30) to the UNFCCC. The conference brings together global leaders, negotiators, and experts to advance climate action and review progress under the Paris Agreement.

About the United Nations Framework Convention on Climate Change (UNFCCC)

Overview

The UNFCCC is the primary global treaty for coordinating international efforts to address climate change. It provides the legal and institutional foundation for subsequent agreements such as the Kyoto Protocol and the Paris Agreement.

Purpose and Objectives

The main aim of the UNFCCC is to promote international cooperation to:

• Limit the rise in average global temperatures to prevent severe climate impacts.

• Enable timely climate adaptation measures.

• Avoid threats to global food security.

• Ensure sustainable and climate-resilient economic development.

Historical Background

The UNFCCC is one of the three major conventions adopted at the 1992 Rio Earth Summit to ensure a sustainable future for the planet. The other two Rio Conventions are:

• Convention on Biological Diversity (CBD)

• United Nations Convention to Combat Desertification (UNCCD)

Membership and Meetings

The Convention has 198 Parties (197 countries + the European Union), making it one of the most widely ratified international treaties.
Parties meet annually at the Conference of the Parties (COP), along with several technical and subsidiary meetings throughout the year, to push forward the implementation of the Paris Agreement.

Scientific Basis

The UNFCCC relies heavily on scientific assessments provided by the Intergovernmental Panel on Climate Change (IPCC).
The IPCC was established in 1988 by UNEP and WMO as the UN’s authoritative body for assessing climate science.

Kyoto Protocol

Introduction

Adopted in 1997, the Kyoto Protocol is an international agreement under the UNFCCC that sets legally binding emission reduction targets for developed countries.

Key Provisions

• Developed nations committed to reducing their greenhouse gas (GHG) emissions by 5% below 1990 levels during the first commitment period (2008–2012).

• The Protocol introduced market-based mechanisms to facilitate cost-effective emission reductions.

Market Mechanisms

The Kyoto Protocol created innovative mechanisms, including:

• Clean Development Mechanism (CDM): Enables developed countries to invest in emission-reducing projects in developing nations while earning certified emission reduction credits.
  These mechanisms aimed to ensure cost-efficient mitigation and promote sustainable development.

Paris Agreement

Adoption and Significance

The Paris Agreement was adopted in 2015 at COP21 in Paris. It reinforces principles of the UNFCCC while introducing new global climate goals applicable to all countries.

Key Goals

The Agreement outlines three major global objectives:

1. Temperature Goal: Limit global warming to well below 2°C, while pursuing efforts to restrict it to 1.5°C above pre-industrial levels.

2. Adaptation Goal: Strengthen climate resilience, adaptation capacities, and reduce vulnerability.

3. Finance Goal: Align financial flows with low-carbon and climate-resilient development pathways.

Nationally Determined Contributions (NDCs)

A major innovation of the Paris Agreement is that all countries, both developed and developing, must prepare and regularly update their NDCs, outlining the climate actions they will undertake.
These actions are supported by an enhanced transparency framework, ensuring accountability.
NDCs respect national circumstances and sovereignty, offering flexibility while encouraging ambition.

The latest Financial Sector Assessment (FSA) Report has stated that India is progressing steadily toward its vision of becoming a $30 trillion economy by 2047. The report highlights the increasing resilience and inclusiveness of India’s financial system.

About the Financial Sector Assessment (FSA) Report

The Financial Sector Assessment (FSA) Report is published by the World Bank. It evaluates the strengths, vulnerabilities, and overall performance of a country’s financial system.

Key Highlights of the FSA Report on India

1. Strengthened Financial System

The report notes that India’s financial system has become more resilient, diversified, and inclusive, indicating strong institutional reforms and effective policy frameworks.

2. Successful Recovery from Past Disruptions

It emphasizes that financial sector reforms enabled India to recover from the distress episodes of the 2010s, including the twin-balance sheet crisis, and shocks from the COVID-19 pandemic.

3. Digital Public Infrastructure (DPI)

India’s world-class digital public infrastructure—including platforms like UPI, Aadhaar, and Jan Dhan—has significantly enhanced access to financial services for both men and women across socio-economic groups.

4. Improved Regulation of NBFCs

The World Bank appreciated India’s scale-based regulation for Non-Banking Financial Companies (NBFCs), which recognizes the varied risk profiles and operational needs of different categories of NBFCs.

5. Growth in Capital Markets

India’s capital markets—including equity, government bonds, and corporate bonds—have grown substantially. Their size increased from 144% of GDP to 175% of GDP since the last Financial Sector Assessment Program (FSAP).

What is the Financial Sector Assessment Program (FSAP)?

Overview

The Financial Sector Assessment Program (FSAP) is a joint initiative of the International Monetary Fund (IMF) and the World Bank, launched in 1999.

Purpose

The FSAP provides a comprehensive and detailed evaluation of a country's financial sector. Its objective is to assess the stability, soundness, and development needs of financial systems.

Focus in Advanced Economies

In advanced economies, FSAPs particularly focus on:

• The resilience of the financial system

• The quality of regulatory and supervisory frameworks

• The capacity to manage and resolve financial crises

Recently, scientists from the Indian Institute of Astrophysics (IIA), in collaboration with NASA, successfully estimated crucial parameters of a Coronal Mass Ejection (CME) using data from the Visible Emission Line Coronagraph (VELC).
The VELC is one of the key scientific payloads aboard Aditya-L1, India’s first dedicated solar mission.

About the Visible Emission Line Coronagraph (VELC)

The Visible Emission Line Coronagraph is the primary payload of the Aditya-L1 Mission, designed for continuous and close observation of the Sun.
Aditya-L1 orbits around the L1 Lagrange point, nearly 1.5 million km away from Earth, providing an uninterrupted view of the Sun.

Key Features of the Visible Emission Line Coronagraph

1. Internally Occulted Solar Coronagraph

VELC is an internally occulted coronagraph, enabling it to block the bright solar disk and capture detailed images of the faint solar corona.

2. Multi-Capability Payload

It is capable of simultaneous imaging, spectroscopy, and spectro-polarimetry near the solar limb, making it a highly advanced solar observation instrument.

3. Advanced Optical Components

The instrument comprises:

• A coronagraph

• A spectrograph

• A polarimetry module

• High-precision detectors

• Additional auxiliary optics

4. Built by Indian Institute of Astrophysics

VELC was developed by the Indian Institute of Astrophysics (IIA) at its CREST campus located at Hosakote, Karnataka.

Objectives of the Visible Emission Line Coronagraph

1. Observation of the Solar Corona

VELC is designed to study the solar corona, the outermost and extremely hot layer of the Sun's atmosphere.

2. Closest Imaging Capability

It can image the corona up to 1.05 solar radii, which is the closest any coronagraph payload has achieved so far.

3. Analysis of Coronal Properties

VELC will help determine:

• Temperature of coronal plasma

• Velocity of solar material

• Density of coronal particles

4. Study of CMEs and Solar Wind

The payload will play a crucial role in understanding Coronal Mass Ejections (CMEs) and the solar wind, both of which significantly influence space weather.

The Standing Committee of the National Board for Wildlife (NBWL) has recently recommended 13 defence and paramilitary projects, most of which are located in the high-altitude protected areas of Ladakh, with one project proposed in Arunachal Pradesh. These recommendations reflect the ongoing need to balance national security requirements with wildlife conservation concerns in ecologically sensitive zones.

About the National Board for Wildlife (NBWL)

The National Board for Wildlife is a statutory body established by the Central Government in 2022 under Section 5A of the Wildlife (Protection) Act, 1972.
It serves as India’s apex advisory body on matters related to wildlife conservation and environmental protection within Protected Areas (PAs).

The NBWL plays a crucial role in guiding the government on issues related to wildlife conservation and also grants approvals for activities and projects proposed within PAs.

Organisational Structure of the NBWL

The NBWL is a 47-member body with the Prime Minister as its Chairperson and the Minister of Environment, Forest and Climate Change (MoEFCC) serving as its Vice-Chairperson.

The Board includes:

• Key officials and institutions directly involved in wildlife conservation.

• The Chief of Army Staff, the Defence Secretary, and the Expenditure Secretary as members.

• Ten eminent conservationists, ecologists, and environmentalists, nominated by the Central Government.

The Additional Director General of Forests (Wildlife) & Director, Wildlife Preservation functions as the Member-Secretary of the Board.

Functions of the National Board for Wildlife

The NBWL performs several important functions, including:

1. Wildlife Conservation and Development

It promotes the conservation and development of wildlife and forest ecosystems across the country.

2. Advisory Role

It advises both the Central and State Governments on policies, measures, and actions necessary for wildlife protection and management.

3. Regulation of Protected Areas

The Board makes recommendations regarding the creation, management, and expansion of National Parks, Wildlife Sanctuaries, and other Protected Areas.

4. Combatting Wildlife Crime

It works toward controlling poaching, illegal wildlife trade, and the exploitation of wildlife products.

5. Environmental Impact Assessment (EIA)

The NBWL evaluates the potential impacts of proposed projects and activities on wildlife and their habitats before granting clearances.

6. Monitoring Conservation Progress

It periodically reviews nationwide wildlife conservation efforts and suggests improvements.

7. Status Reports

The NBWL is required to prepare and publish a status report on wildlife in India at least once every two years.

Standing Committee of the National Board for Wildlife

The Standing Committee is an independent sub-body under the NBWL.
It consists of not more than 10 members from the full NBWL, and is headed by the Minister of Environment, Forest and Climate Change.

Functions of the Standing Committee

• The Standing Committee primarily deals with project-level clearances, including decisions related to land diversion within Protected Areas and Eco-Sensitive Zones.

• Its mandate is operational and project-specific, making it distinct from the NBWL, which handles broader policy-level decisions regarding wildlife conservation.