The textiles industry is set for moderation in revenue growth in 2023-24 (FY24) as export demand, which usually accounts for a fourth of the total market, is expected to be limited due to a slowdown in key markets, though domestic demand will continue to grow at a steady pace.

This bodes ill for small and medium enterprises (SMEs), which make up close to 75 per cent of the textile value chain and are estimated to have seen robust revenue and profit growth in FY22 on the back of a post-pandemic surge in exports.

In the medium term, free trade pacts with major markets and the setting up of textile parks under the PM MITRA scheme will boost India’s competitiveness in the RMG space. This will be complemented by the Production Linked Incentive scheme, which will give a leg-up to domestic manufacturing, particularly in synthetic textiles.