India’s Textile and Apparel Industry

A recent analysis revealed that India's share in the global apparel trade has remained stagnant at just 3%, highlighting the urgent need for policy innovation to achieve the $40 billion export target by 2030.

 India’s Textile and Apparel Industry:

• A traditional sector employing over 45 million people.
• Contributes 2.3% to India's GDP.
• Accounts for 12% of manufacturing employment.

• India’s share in global Textile & Apparel (T&A) trade: 4.2% ($37.8 billion out of $897.8 billion).
• Apparel segment alone: 3% share globally.

• Over 80% of apparel units are small and fragmented, lacking scale and global competitiveness.

Importance of the Textile and Apparel Industry:

1. Mass Employment Generator:
   • Second-largest employer after agriculture.
   • Vital in states like Tamil Nadu, Gujarat, and West Bengal.
2. High Value Addition:
   • From raw cotton to readymade garments, value is added at every stage.
   • Apparel exports yield higher returns than raw materials.
3. Export Potential:
   • Contributes approx. $37.8 billion to global trade.
   • Target: $40 billion apparel exports by 2030.
4. Boost to Ancillary Sectors:
   • Supports dyes, chemicals, logistics, machinery, retail, etc.
   • A 10% rise in garment output increases demand across the value chain.

5. Women-Centric Employment:
   • ~70% of workforce in key apparel hubs are women.
   • Example: Shahi Exports employs over 70,000 women.

Government Schemes (Textiles & Apparel):

For Textiles:

• PM MITRA Parks: 7 integrated parks to enhance competitiveness and cut logistics costs.
• Amended TUFS: Encourages technology upgrades in textile units.

For Apparel:

• RoSCTL: Refunds state and central taxes/levies on exports.

• SAMARTH: Skills training for textile/apparel workers.

• PLI Scheme (Textiles): Focus on man-made fibre (MMF) and technical textiles; PLI 2.0 proposes including large garment units.

Key Structural Bottlenecks:

• Fragmentation: 80% MSMEs lack scale and global reach.
• High Capital Cost: India's 9% interest rate vs. 3–4.5% in China/Vietnam.
• Rigid Labour Laws: Overtime cost twice the wage; compliance is complex.
• Supply Chain Issues: Dispersed production increases costs and delivery time.
• Low Female Participation: Despite potential, female labour force participation (FLFP) remains underused.

Way Forward:

1. Subsidised Capital for Scale:
   • Offer 25–30% capex subsidy and 5–7 year tax holidays to large units (1000+ machines).
2. Labour Reforms:
   • Align overtime pay with ILO norms (1.25x) and simplify hiring compliances.
3. Link MGNREGA to Wages:
   • Use 25–30% MGNREGA funds to subsidize garment factory wages.
4. MITRA Garment Hubs:
   • Establish 2 major garment parks in Uttar Pradesh or Madhya Pradesh to reduce migration and promote industrial growth.
5. Export-Linked Incentives (ELI):
   • Shift focus from production-linked to export-linked rewards to boost market competitiveness.

Conclusion:

India’s textile and apparel sector has huge potential for employment and export growth. But achieving the $40 billion export target by 2030 will require bold reforms, scalable industry models, and precise policy support. The success of firms like Shahi Exports shows scalability is possible—if supported by enabling ecosystems.

Previous Year Question (UPSC-2023):

Q. Faster economic growth requires increased share of the manufacturing sector in GDP, particularly of MSMEs. Comment on the present policies of the Government in this regard.

Corruption

Syllabus: Corruption, GS Paper 4:
Source: Financial Express (FE)

Context:

An IAS officer, Dhiman Chakma, was caught red-handed by Odisha Vigilance while accepting a ₹10 lakh bribe to allegedly prevent the closure of a business unit.

 Corruption:

Corruption is the misuse of public office or authority for personal gain. It undermines public trust, distorts policymaking, and diverts essential resources away from development and welfare.

Types of Corruption:

1. Bribery:
   The exchange of money, gifts, or favours to influence a public official’s actions.
   Example: An IAS officer in Odisha demanded ₹10 lakh to prevent a business closure.
2. Embezzlement:
   Misuse or theft of public funds by officials in power.
   Example: Redirecting government funds into personal accounts.
3. Nepotism:
   Giving undue favour to family or close associates in appointments, contracts, or benefits.
   Example: Civic contracts awarded to relatives of politicians without proper bidding.
4. Collusive Corruption:
   Secret arrangements between public officials and private players for mutual benefit.
   Example: Officials and contractors colluding to inflate costs in Smart City projects.

Reasons Behind Corruption in India:

• Election Expenditure Pressure:
  High campaign costs create pressure on politicians to repay favours.
  Example: Approx. ₹1 lakh crore spent in the 2024 Lok Sabha elections (CMS data).
• Weak Institutional Checks:
  Bodies like Lokpal and Lokayukta exist, but most are underfunded or ineffective.
• Red Tape and Discretionary Power:
  Overregulation and vague procedures allow space for rent-seeking.
• Inequality and Rising Aspirations:
  Widening income gap leads some officials to misuse power for lifestyle upgrades.
  Example: Low-paid officers take bribes to afford luxury goods.
• Lack of Public Awareness:
  Many citizens don’t use RTI or grievance redressal systems to demand accountability.

Government Initiatives:

• Vigilance Raids:
  Anti-corruption agencies actively trap corrupt officials and seize unaccounted wealth.
  Example: ₹57 lakh in unaccounted cash seized from an IAS officer in Odisha.
• Digital Reforms:
  Systems like e-Tendering, PFMS, and DBT reduce human interference and fund leakage.
  Example: PDS benefits now reach bank accounts directly.
• Whistleblower Protection Act:
  Protects individuals who report corruption in public interest.
• Right to Information (RTI) Act:
  Enhances transparency by giving citizens access to government records.
• Mandatory Asset Disclosure:
  Government officers are required to declare their assets annually.

Way Forward:

1. Revive Lokpal and Lokayuktas:
   Ensure adequate funding, autonomy, and regular audits to restore trust.
2. Cap Political Funding:
   Impose limits on campaign spending, ban cash donations, and increase transparency in electoral bonds.
3. Leverage AI and Technology:
   Use AI for pattern detection in tender processes, property deals, and resource allocations.
   Example: AI flagged illegal sand mining activities in Rajasthan.
4. Ensure Time-Bound Public Services:
   Implement and monitor service delivery laws with penalties for delays.
   Example: Delhi's RTS Act fines officers for late services.
5. Citizen Empowerment:
   Strengthen grievance redressal portals, conduct social audits, and create local vigilance committees.
   Example: Community participation helps curb petty corruption.

Conclusion:

India’s fight against corruption is multi-dimensional. While strong laws and digital monitoring can act as deterrents, active citizen engagement and institutional reform are essential. The path to clean governance lies in transparency, ethical integrity, timely justice, and civic accountability.

Previous Year Question (UPSC-2023):

"Corruption is the manifestation of the failure of core values in the society."
In your opinion, what measures can be adopted to uplift the core values in the society?