Kulin Lalbhai, Vice Chairman of Arvind and Chairman of the Gujarat Confederation of Indian Industry (CII), pointed out that rising costs of raw materials are impacting India’s competitiveness. He noted that cotton, viscose, and polyester—the three key raw materials for the textile industry—are among the most expensive in India, largely due to import taxes in the upstream value chain. Lalbhai suggested that removing import duties on raw materials could help lower costs and boost value addition in the textile industry while maintaining competitiveness to capture market share from global competitors.
India holds significant potential in the domestic textile market, particularly in manmade fibres (MMF), which account for 60% of global trade. However, Lalbhai pointed out that the Indian MMF industry remains underdeveloped due to high raw material costs. Despite having advanced capabilities in spinning and weaving, Indian manufacturers face challenges in achieving price parity with competitors like China, Taiwan, and Vietnam.
“So, we do need to look across the value chain, where do we focus on local value addition, where do we have a level playing field on cost and unless we are competitive, the manmade fibres will not scale up,” Lalbhai said. There’s also a need to attract large global investors, including companies from Taiwan and Vietnam, said Lalbhai while stressing the importance of creating a conducive investment environment through plug-and-play infrastructure in PM MITRA (PM Mega Integrated Textile Region and Apparel) parks.
He highlighted the critical role of free trade agreements (FTAs) with Western nations in addressing the 11% duty disadvantage India faces in exports to the European Union and the UK. These measures could unlock substantial growth potential for the sector.
Plug-and-play infrastructure is a system designed for easy setup and quick integration with existing systems. The government has already taken steps to boost the textile industry through the Production Linked Incentive (PLI) scheme, launched in September 2021.
The scheme focuses on promoting MMF apparel, fabrics, and technical textiles. In its first round, it received 74 applications, with an estimated investment of Rs. 28,000 crore and government incentives worth Rs. 7,000 crore. However, the industry is now seeking the inclusion of additional sectors, such as garments, under the PLI scheme.
Sivaramakrishnan Ganapathi, Vice Chairman and Managing Director of Gokaldas Exports, who joined the discussion, said the apparel industry’s primary challenge is not demand but capacity.
He pointed out the need to create more production capacity and workforce in core clusters where the industry is thriving. “If we are able to encourage more people to come work in the core clusters where this industry is thriving – that will go a long way in doubling the apparel industry output from an export standpoint,” he said.
The market capitalisation of Arvind stands at approximately Rs. 9,838.55 cr, with its shares gaining nearly 26% over the past year. Arvind’s peer Gokaldas Exports has a market capitalisation of Rs. 7,294.58 cr, and its shares have risen by around 12% in the same period.
Kulin Lalbhai, Vice Chairman of Arvind and Chairman of the Gujarat Confederation of Indian Industry (CII), pointed out that rising costs of raw materials are impacting India’s competitiveness. He noted that cotton, viscose, and polyester—the three key raw materials for the textile industry—are among the most expensive in India, largely due to import taxes in the upstream value chain. Lalbhai suggested that removing import duties on raw materials could help lower costs and boost value addition in the textile industry while maintaining competitiveness to capture market share from global competitors.
