What’s in Today’s Article?

• India’s Textile Industry Latest News
• India’s Textile Journey: From Fibre to Fabric
• India’s Textile and Apparel Industry: Growth and Export Trends
• India’s Textile Export Challenges
• The Sustainability Challenge in India’s Textile Industry
• India’s Textile Industry FAQs

India’s Textile Industry Latest News

• India’s textile industry is one of the largest globally, covering the entire value chain from cotton cultivation to apparel manufacturing. However, it lags behind China, Vietnam, and Bangladesh in exports due to fragmented supply chains, higher costs, and complex regulations. 
• Despite being a major producer of cotton and synthetic fibres, the industry has seen slow growth. Rising sustainability and compliance requirements are expected to further increase costs, particularly for smaller firms.

India’s Textile Journey: From Fibre to Fabric

• Cotton Production and Employment
  • India is the second-largest cotton producer globally, contributing 24% of global production. 
  • Cotton farming involves around 60 lakh farmers, primarily in Gujarat, Maharashtra, and Telangana. 
  • The cotton textile value chain, from fibre processing to garment manufacturing, employs over 4.5 crore people.
• Man-Made Fibre (MMF) Industry
  • India is also the second-largest producer of MMF, with Reliance Industries leading in polyester and Grasim Industries being the sole domestic producer of viscose. 
  • However, MMF consumption in India remains low at 3.1 kg per capita, compared to 12 kg in China and 22.5 kg in North America. 
  • Overall fibre consumption, including natural and synthetic fibres, is 5.5 kg per capita, below the global average of 11.2 kg.
• MSME Clusters and Specialisations
  • Around 80% of India's textile value chain operates within MSME clusters, each specializing in different textiles:
    • Bhiwandi (Maharashtra) – Fabric production
    • Tiruppur (Tamil Nadu) – T-shirts and undergarments
    • Surat (Gujarat) – Polyester and nylon fabrics
    • Ludhiana (Punjab) – Woolen garments

India’s Textile and Apparel Industry: Growth and Export Trends

• India’s textile and apparel sector is a key economic driver, contributing 13% to industrial production, 12% to exports, and 2% to GDP. 
• However, manufacturing growth has slowed over the past decade.

Growth Trends

• Between FY15 and FY19, the textile sector grew at a CAGR of 0.4%, while apparel grew at 7.7%. 
• From FY20 to FY24, the industry contracted, with textiles shrinking by 1.8% annually and apparel by 8.2%, largely due to post-pandemic economic challenges.

Export Performance and Key Markets

• Despite a trade surplus, textile and apparel exports have seen sluggish growth. 
• In FY24, exports stood at $34.1 billion, slightly up from $33.4 billion in FY20. 
• Nearly 50% of exports were to the U.S. and EU, serving brands like JCPenney, Gap, and Decathlon.

Sector-Wise Export Trends

• Garment and Apparel Exports – Declined from $15.5 billion in FY20 to $14.5 billion in FY24.
• Cotton Textiles and Home Textiles – Grew from $10.2 billion in FY20 to $12.3 billion in FY24, with key players like Welspun Living and Trident Ltd.

Challenges for MSMEs

• The slowdown has hit MSME clusters, especially in Tamil Nadu, due to global and domestic economic headwinds, impacting production and exports.

India’s Textile Export Challenges

• Lagging Behind Competitors
  • India trails China, Vietnam, and Bangladesh in textile exports due to higher production costs and a fragmented supply chain. 
  • In contrast, Vietnam exported $40 billion worth of apparel in 2023, benefiting from vertically integrated supply chains that lower manufacturing costs.
• Fragmented Cotton Supply Chain
  • India's cotton supply chain is spread across multiple states, increasing logistical costs and hindering large-scale production. 
  • The lack of localisation makes production costlier compared to fibre-to-fashion firms in China and Vietnam, which offer low-cost, high-quality, and adaptable exports.
• Regulatory and Trade Barriers
  • Competitor nations benefit from free trade agreements (FTAs) and simpler customs procedures, reducing regulatory costs. 
  • In contrast, India’s complex export procedures, requiring detailed accounting of every fabric, button, and zipper, increase compliance burdens for exporters.
• High Raw Material Costs in MMF Sector
  • India’s man-made fibre (MMF) sector suffers from high raw material costs. 
  • Quality control orders (QCOs) restrict imports of polyester and viscose fibres, forcing domestic yarn makers to rely on costlier local alternatives. 

The Sustainability Challenge in India’s Textile Industry

• Growing Global Focus on Sustainability
  • With global markets tightening compliance norms, Indian manufacturers must increase renewable energy use, improve recycling, and ensure stricter sourcing and traceability.
• Rising Costs Due to Sustainable Sourcing
  • A global shift towards sustainable textiles is increasing production costs. 
  • The EU, which accounts for 20% of India’s textile exports, has implemented 16 new regulations from 2021 to 2024, making it challenging for small enterprises to transition to environmentally friendly production.
• The Fast Fashion Waste Crisis
  • The textile recycling market in India is projected to reach $400 million, while the global market could touch $7.5 billion. 
  • With fashion waste expected to hit 148 million tonnes by 2030, PM Modi highlighted the need for higher recycling efforts, as currently, less than 25% of textile waste is recycled.

India’s Textile Industry FAQs

Q1. Which state is famous for the textile industry in India?

Ans. Gujarat, Maharashtra, and Tamil Nadu are India’s top textile hubs, with Surat, Mumbai, and Tiruppur being key manufacturing centers.

Q2. What are man-made fibres?

Ans. Man-made fibres (MMF) are synthetic or regenerated fibres, such as polyester, viscose, and nylon, produced using chemical processes.

Q3. What are 5 synthetic fibres?

Ans. Five common synthetic fibres are polyester, nylon, acrylic, spandex, and polypropylene, widely used in textiles and apparel.

Q4. What is called cotton?

Ans. Cotton is a natural fibre from the cotton plant, known for its softness, breathability, and widespread use in textiles.

Q5. Where is cotton grown in India?

Ans. Cotton is primarily grown in Gujarat, Maharashtra, Telangana, Rajasthan, and Madhya Pradesh, covering major cotton-producing regions.

Source: IE | BS

What’s in Today’s Article?

• India-China Bilateral Relationship Latest News
• Introduction
• Origins of the Tea Horse Road
• A Network of Roads Across Difficult Terrain
• Tea and Horses – The Core of the Trade
• The Road’s Role in Modern History
• Revival of the Tea Horse Road as a Cultural Landmark
• Conclusion
• Tea Horse Road FAQs

India-China Bilateral Relationship Latest News

• China’s Ambassador to India Xu Feihong posted on X (Twitter) about the historic Tea Horse Road which spanned more than 2,000 km, and connected China to India via Tibet.

Introduction

• The Tea Horse Road, an ancient trade network connecting China, Tibet, and India, played a key role in commerce and cultural exchange for centuries.
• While less famous than the Silk Road, this route facilitated the movement of tea, horses, and other valuable commodities across some of the world's most challenging terrains.
• On February 25, 2025, China’s Ambassador to India, Xu Feihong, highlighted the historical significance of the Tea Horse Road, emphasizing its role in strengthening India-China ties through history.

Origins of the Tea Horse Road

• The Tea Horse Road traces its origins to the Tang Dynasty (618-907 CE), when trade between Southwest China, Tibet, and India first flourished.
• Buddhist monk Yijing (635-713 CE) documented early trade exchanges, mentioning the movement of goods such as sugar, textiles, and rice noodles from China, while horses, Tibetan gold, saffron, and medicinal herbs were exported.
• By the 10th century, during the Song Dynasty (960-1279 CE), official markets were established along the route to regulate the trade of tea and horses, which became the dominant commodities exchanged between China and Tibet.

A Network of Roads Across Difficult Terrain

• The Tea Horse Road was not a single pathway, but a network of trails originating in Southwest China and reaching deep into the Indian subcontinent, Nepal, and Bangladesh.
• Key Features of the Route:
  • Length: Over 2,000 km
  • Key Cities: Passed through Dali, Lijiang (Yunnan Province), and Lhasa (Tibet)
  • Elevation: Reached up to 10,000 feet in the Himalayas
  • Challenges: Harsh terrain, extreme weather, and high altitudes made the journey perilous for traders
• Despite these difficulties, traders travelled extensively, carrying tea from Sichuan to Tibet and India, while returning with horses and other essential goods.

Tea and Horses – The Core of the Trade

• Tea was a necessity for Tibetan nomads, who lived in cold and harsh climates. According to National Geographic, yak butter tea became a staple for Tibetans, providing essential warmth and energy.
• Meanwhile, horses were crucial for China’s military. Since the central plains of China lacked horses, they had to be imported from Tibet and Yunnan.
• Tibetan steeds became highly valued, particularly in China’s conflicts against Mongolian tribes.·
• To regulate this exchange, China’s Song Dynasty government established official markets, ensuring a controlled trade of tea and horses, which contributed to regional economic stability.

The Road’s Role in Modern History

• Expansion of Trade in the Early 20th Century
  • With the fall of the Qing Dynasty in 1912, the Tea Horse Road became even more vital. Yunnan’s tea industry expanded as China integrated into the global market.
  • New trade techniques and goods were introduced to the mountainous regions, increasing economic opportunities.
• World War II and the Road’s Strategic Importance
  • During World War II, when Japan controlled much of China’s coastline, the Tea Horse Road served as an alternative supply route for transporting goods and military supplies to China’s resistance forces.
• Decline After the Founding of the People's Republic of China (1949)
  • Following the establishment of the People’s Republic of China, the importance of the Tea Horse Road declined.
  • Mao Zedong’s land reforms significantly changed trade patterns, and with the advancement of modern transportation, the historic trade route lost its relevance.
  • However, some remnants remain, particularly in regions like Lijiang, which became a UNESCO World Heritage Site in 1997 due to its historical significance in trade.

Revival of the Tea Horse Road as a Cultural Landmark

• In recent years, China has promoted tourism along the ancient trade route, highlighting its historical importance.
• The city of Lijiang, once a crucial trade hub, has been transformed into a cultural and heritage site, drawing visitors from across the world.
• According to UNESCO, Lijiang was an important distribution center for trade between Sichuan, Yunnan, and Tibet, where it intersected with southern Silk Road routes. Today, the city serves as a testament to the Tea Horse Road’s enduring legacy.

Conclusion

• The Tea Horse Road was more than just a trade route; it was a lifeline connecting China, Tibet, and India for centuries.
• While its significance has diminished in modern times, it remains a historical and cultural symbol of international exchange.
• Today, efforts to preserve its legacy through tourism and research highlight its role in shaping the economic and cultural landscapes of the regions it once traversed.
• The renewed focus on this historic route serves as a reminder of the deep historical ties between India and China.

Tea Horse Road FAQs

Q1. What was the Tea Horse Road?

Ans. The Tea Horse Road was an ancient trade network connecting China, Tibet, and India, facilitating the exchange of tea, horses, and other goods.

Q2. When did the Tea Horse Road originate?

Ans. The route dates back to the Tang Dynasty (618-907 CE) and played a crucial role in trade until the mid-20th century.

Q3. Why was tea important in Tibet?

Ans. Tibetan nomads relied on tea as a source of warmth and energy, often consuming yak butter tea in cold climates.

Q4. How did the Tea Horse Road impact military trade?

Ans. China imported horses from Tibet to strengthen its military, while Tibet received tea and other essential supplies in return.

Q5. Is the Tea Horse Road still in use today?

Ans. While no longer a commercial trade route, parts of the Tea Horse Road are being preserved as cultural heritage sites, particularly in Lijiang, China.

Source: IE

What’s in Today’s Article?

• Fertilizer Strategy in India Latest News
• India’s Dependence on Imported Fertilisers
• Need to Limit the Usage of Urea, MOP, and DAP
• An Effective Replacement for DAP: Ammonium Phosphate Sulphate (APS)
• The Road Ahead
• Fertilizer Strategy in India FAQs

Fertilizer Strategy in India Latest News

• India aims to cap or reduce the consumption of urea, di-ammonium phosphate (DAP) and muriate of potash (MOP) due to their heavy reliance on imports.

India’s Dependence on Imported Fertilisers

• MOP: Fully imported from Canada, Russia, Jordan, Israel, Turkmenistan, and Belarus due to the lack of domestic potash reserves.
• Urea: Over 85% of demand met domestically, but production depends on imported liquefied natural gas (LNG) from Qatar, the US, UAE, and Angola.
• DAP: imported in the form of 
  • finished fertiliser (mainly from Saudi Arabia, China, Morocco, Russia and Jordan) as well as 
  • raw material (rock phosphate from Jordan, Morocco, Togo, Egypt and Algeria; sulphur from UAE, Qatar and Oman) and 
  • intermediate chemicals (phosphoric acid from Jordan, Morocco, Senegal and Tunisia; ammonia from Saudi Arabia, Qatar, Oman and Indonesia).

Need to Limit the Usage of Urea, MOP, and DAP

• High Import Dependence and Currency Depreciation
  • India heavily relies on imports for MOP and DAP, while urea production depends on imported liquefied natural gas (LNG).
  • The rupee’s depreciation further increases the cost of these fertilisers, putting pressure on foreign exchange reserves.
• Imbalance in Nutrient Application
  • Urea (46% nitrogen), MOP (60% potash), and DAP (46% phosphorus + 18% nitrogen) are high-analysis fertilisers.
  • Most crops do not require such high concentrations of individual nutrients, leading to inefficient nutrient absorption and wastage.
• Need for Balanced Fertilisation
  • Crops require a mix of macronutrients (N, P, K), secondary nutrients (sulphur, calcium, magnesium), and micronutrients (zinc, iron, copper, boron, manganese, molybdenum).
  • Excessive use of high-analysis fertilisers disrupts soil health and reduces long-term productivity.
• Efficient Use of Resources and Foreign Exchange
  • Reducing dependence on high-analysis fertilisers ensures better utilisation of imported raw materials.
  • Balanced fertilisation promotes sustainable farming, enhances crop yields, and reduces unnecessary expenditure on imports.

An Effective Replacement for DAP: Ammonium Phosphate Sulphate (APS)

• APS (20:20:0:13) contains 20% nitrogen (N), 20% phosphorus (P), and 13% sulphur (S) but no potassium (K).
• Despite having lower phosphorus content than DAP (which has 46% P), APS is an effective alternative due to its balanced nutrient composition.
• APS manufacturing reduces dependence on costly phosphoric acid, making fertiliser production more economical and resource-efficient.
• The inclusion of sulphur improves soil health and enhances crop yield, making APS a viable and sustainable alternative to DAP.
• APS is ideal for oilseeds, pulses, maize, cotton, onion, and chilli, which require high sulphur content.
  • DAP should be reserved for wheat, rice, and sugarcane, where it is most essential.
• Also, companies benefit by selling twice the number of APS bags from the same phosphoric acid quantity, making APS a more financially viable option.

The Road Ahead

• Surge in NPKS Complex Fertiliser Sales
  • NPKS fertiliser sales in 2024-25 are projected to reach 14 mt, nearly double the 7.3 mt in 2013-14.
  • The rapid growth is largely driven by 20:20:0:13, which is steadily replacing DAP.
• Expanding the Push for Balanced Fertilisation
  • Other complex fertilisers like 10:26:26:0, 12:32:16:0, 15:15:15:0, and 14:35:14:0 need stronger marketing efforts.
  • Direct application of MOP should be minimised, with its usage integrated into balanced complex fertilisers.
• Reducing Dependence on High-Analysis Fertilisers
  • The long-term goal is to limit or reduce the use of urea, DAP, and MOP, ensuring efficient nutrient application.
  • Farmers should be encouraged to maximize nutrient use efficiency, leading to better crop productivity while conserving foreign exchange.

Fertilizer Strategy in India FAQs

Q1. What is called fertiliser?

Ans. Fertiliser is a substance added to soil to supply essential nutrients, enhancing plant growth and crop yield.

Q2. What are the top 3 fertilizers?

Ans. The top three fertilizers are urea (nitrogen-rich), DAP (phosphorus and nitrogen), and MOP (potassium-rich), crucial for agriculture.

Q3. What is urea in fertilizer?

Ans. Urea is a nitrogen-rich fertilizer (46% nitrogen) that enhances plant growth but requires proper application to prevent soil degradation.

Q4. What is the urea formula?

Ans. The chemical formula of urea is CO(NH₂)₂, consisting of carbon, oxygen, and nitrogen, widely used in agriculture.

Q5. Which is better, NPK or urea?

Ans. NPK fertilizers provide balanced nutrients (N, P, K) for plant growth, while urea supplies only nitrogen, making NPK better for overall fertility.

Source: IE