India's textile industry stands at a critical juncture as it prepares for Budget 2024 amidst a challenging global environment and promising growth prospects. Currently ranked as the sixth-largest exporter of textiles and apparel globally, India aims to significantly boost its textile exports to $600 billion by 2047, up from $44 billion in FY22. However, achieving these targets remains daunting, given the backdrop of geopolitical tensions and shifting consumer behaviors.

Global issues such as the ongoing Russia-Ukraine conflict and the Red Sea crisis have further complicated matters, leading to disruptions in global supply chains and increased freight costs for Indian exporters. Despite a global uptrend in textile exports, growing at a CAGR of 3.4% between 2018 and 2022, India's export growth has remained sluggish at around 1%, underscoring the urgent need for strategic interventions to stimulate the sector.

In response, the government launched the Production-Linked Incentive (PLI) scheme for textiles in 2021, committing Rs 10,683 crore over five years to boost the production of man-made fiber apparel, fabrics, and technical textiles. While the scheme has seen investments totaling Rs 2,119 crore and the creation of 8,214 jobs across selected units, its impact has been slower than anticipated, prompting calls for refinements and extensions.

Industry stakeholders and experts are eagerly awaiting Budget 2024, hoping for increased funding allocations towards micro, small, and medium enterprises (MSMEs), which constitute 80% of the textile market. The extension of the PLI scheme to garments is also anticipated to stimulate domestic manufacturing and enhance export competitiveness. Textiles Minister Giriraj Singh has indicated that policy interventions could target reaching $50 billion in textile exports.

Additionally, the Ministry of Textiles plans to revitalize the Scheme for Integrated Textile Parks, aiming to establish internationally benchmarked standards for new parks. With 54 textile parks already approved, the focus is on enhancing infrastructure to improve operational efficiencies across the textile value chain.

Industry leaders emphasize the urgent need for policy measures that strengthen supply chain resilience, skill development, technological adoption, and market diversification. They argue that with robust policy support and strategic investments, the Indian textile industry can weather current challenges and capitalize on emerging global opportunities.

Stakeholders are optimistic that proactive measures in Budget 2024 will pave the way for a resilient, competitive, and growth-oriented textile sector. They anticipate that textiles will significantly contribute to India's economic recovery and export goals in the years ahead.