The Indian government is contemplating strategies to address the challenges confronting the country's textile sector, particularly in enhancing the competitiveness of domestic production of synthetic yarns.

Reported by Mint, the textile industry, a significant employer with nearly 50 million workers, is grappling with limited capabilities in manufacturing synthetic yarns, an area predominantly dominated by China. Despite a steady global surge in demand for synthetic textiles, India's share in this market remains modest at 5 to 6 percent.

Once a frontrunner in the global textile arena during the 1990s, India's textile sector has encountered hurdles in recent years. This has resulted in heightened reliance on Chinese imports, a decline in Indian textile exports, and a diminishing market share for the domestic industry.

Sources familiar with the matter divulged that the government is formulating a plan to modernize small, informal weaving, and processing units by upgrading their technological infrastructure. The objective is to enable these units to produce goods meeting global standards and effectively compete with Chinese counterparts.

The proposed strategy entails providing subsidies and tax incentives to establish advanced manufacturing facilities for synthetic yarns. These incentives would complement the existing production-linked incentive (PLI) scheme for the textile sector.

A source stated, "The government is devising a plan to modernize small, informal weaving, and processing units by upgrading their technology." The proposal is presently under discussion, with its specific details slated for finalization in the near future.