A fresh assessment from NITI Aayog, published under the title ‘Key Sectors to Position India as a Global Manufacturing Hub’, has singled out the textile and clothing sector as amongst the nation’s most vital industrial pillars.
The segment contributes roughly 2% towards overall GDP, accounts for 11% of manufacturing gross value added, and makes up 9% of the country’s merchandise shipments abroad.
According to the policy think tank, India’s textile sector holds considerable scope to bolster its standing on the world stage, provided efforts are made towards securing raw material supplies, expanding production capacity via improved infrastructure, and broadening access to overseas markets through closer trade partnerships.
Beyond agriculture, textiles rank as the nation’s biggest source of employment, sustaining livelihoods for upwards of 45 million workers whilst underpinning extensive small and medium enterprise activity across the industrial landscape.
Trade figures for fiscal 2025 show India shipped textile and apparel valued at $37.7 billion overseas, representing a 4.1% slice of worldwide textile and garment trade and cementing its position as the world’s sixth-biggest exporter in the category.
Turning to chemicals, the report noted that domestic demand is chiefly driven by three categories: petrochemicals and organic compounds, speciality chemicals, and inorganic chemicals — with the first representing the largest share, encompassing polymers, man-made fibres, performance plastics, building-block chemicals, intermediates and finished goods.
According to Niti Aayog, the chemicals sector, too, carries substantial room for growth in domestic value creation through expanded downstream operations and more efficient use of feedstocks.
Boosting local production, channelling investment into competitiveness, and leveraging free trade agreements strategically could collectively help curb reliance on imports, reinforce downstream capacity, and foster durable, sustainable expansion across the industry.
On the energy front, the nation’s installed solar power capacity reached 106 GW as of March 2025, leaving a further 174 GW to be added if the 2030 goal of 280 GW is to be met.
NITI Aayog envisages the document serving as a roadmap to help nurture manufacturing ecosystems within targeted industries over the coming years, with businesses and policymakers working in tandem on tailored measures to tackle prevailing obstacles.
Image courtesy: The Hindu
