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Indo-European FTA and the Indian Textile Industry in a VUCA World by Sumer Mehta
The textile industry is one of the most important industries in India and has played a major role in the country’s economy for many years. India is known around the world for producing cotton, silk, and handwoven fabrics, and the industry provides employment to millions of people. Today, the textile sector is one of India’s largest export industries and contributes greatly to foreign exchange earnings. Over time, the industry has grown from traditional handloom production into a large export-orientated business connected to markets across the world. However, the industry now operates in a highly competitive and unpredictable environment, often described as a VUCA world — marked by volatility, uncertainty, complexity, and ambiguity.
Exploring the historical development, opportunities and threats presented to the Indian Textile Industry by the Indo-European Fair Trade Agreement in a VUCA World, by Sumer Mehta
Introduction
The textile industry is one of the most important industries in India and has played a major role in the country’s economy for many years. India is known around the world for producing cotton, silk, and handwoven fabrics, and the industry provides employment to millions of people. Today, the textile sector is one of India’s largest export industries and contributes greatly to foreign exchange earnings. Over time, the industry has grown from traditional handloom production into a large export-orientated business connected to markets across the world. However, the industry now operates in a highly competitive and unpredictable environment, often described as a VUCA world — marked by volatility, uncertainty, complexity, and ambiguity. Rising raw material prices, changing global demand, competition from countries like Bangladesh and Vietnam, and strict international standards have created many challenges for textile businesses.
This report focuses on understanding the Indian textile industry through the example of a family-run garment manufacturing and export business based in Tirupur, Tamil Nadu, which is widely known as the “Knitwear Capital of India". Tirupur has grown into one of the biggest textile hubs in the country, with over 10,000 garment units and employment for more than six lakh people. The city contributes nearly 90% of India’s cotton knitwear exports and has strong business connections with international markets, especially Europe. The focus of the report is on Mehta Exports, one of the pioneering export houses of Tirupur.
The company was started 45 years ago by Bharat Mehta, who discovered Tirupur during his travels and recognised its future potential before the city became a major textile hub. At that time, there was very little competition in the industry.
To learn more about the Mehta family business, primary research proved to be the most helpful source. An interview with Ankur Mehta, managing director, Mehta Exports, helped understand how the business operates and how it has changed over time. The company follows a cluster-based system, where different stages of production such as knitting, dyeing, stitching, printing, checking, and packing are handled by specialised units across Tirupur. The business mainly exports cotton-based garments such as T-shirts and polo shirts to international buyers in Europe.
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