India’s Textile Industry

Source: IE 

Why in News?  

India’s textile industry has the potential to become a global leader, driven by a growing domestic market, and rising global interest. 

• However, key issues such as high production costs, fragmented supply chains, and sustainability challenges have slowed growth and exports. 

What are the Key Facts About India’s Textile Industry? 

• Economic Contribution: The textile industry contributes 2.3% to India's Gross Domestic Product (GDP), projected to reach 5% by 2030.  
  • As of FY24, it accounts for 13% of industrial production, 12% of exports, and employs 4.5 crore workers.  
  • In FY24 exports stood at USD 35.9 billion, with key markets in the US, EU, and UAE. 
• Position in Global Textile Trade: India has the 2nd largest textile manufacturing capacity globally and ranks as the 6th largest exporter of textiles and apparel in 2023 (accounting for 3.9% of global trade). 
  • India is the 2nd largest producer of cotton in the world (23.83% of world cotton production), with production expected to reach 7.2 million tonnes by 2030. 
  • India is the largest producer of jute in the world, and 2nd largest producer of man-made fibres (MMF), including polyester, viscose, nylon, and acrylic. 

 

• Market Growth Projections: India’s textile and apparel market is projected to reach USD 350 billion by 2030. 
• Government Initiatives: PM Mega Integrated Textile Region and Apparel (MITRA) Parks, Production Linked Incentive (PLI) Scheme for Textiles, National Technical Textile Mission (NTTM). 
  • 100% Foreign Direct Investment (FDI) allowed in textiles under the automatic route to attract foreign investment. 

What are the Key Challenges Facing India’s Textile Industry? 

• Lack of Trade Agreements: Countries like Vietnam and China benefit from Free Trade Agreements (FTAs) with major markets, making its exports more competitive.  
  • India lacks similar FTAs in key textile-consuming regions like the US. 
• Stagnant Growth and Declining Exports: Textile sector contracted by 1.8% annually (FY20-FY24), while apparel sector shrank by 8.2% per year. 
  • Apparel exports fell from USD 15.5 billion in FY20 to USD 14.5 billion in FY24. 
• Expensive Raw Materials: Government-imposed Quality Control Orders (QCOs) restrict imports of polyester and viscose, forcing domestic yarn makers to rely on costlier local alternatives. 
  • Polyester fibre in India is 33-36% costlier than in China, while viscose fibre is 14-16% more expensive. 
• Low Export Competitiveness: 
• India's textile exports are costlier than those of China and Vietnam due to supply chain integration issues.  
  • Unlike vertically integrated supply chains (company takes ownership of suppliers) in China, India's fragmented supply chain spread across states and complex customs increase logistics costs and reduce competitiveness. 
  • Additionally, Bangladesh, as a Least Developed Country (LDC), enjoys duty-free exports, gaining a cost advantage over India in many markets due to preferential trade policies. 
• Sustainability Pressures: Global brands are enforcing strict environmental norms, requiring higher renewable energy use, waste recycling, and traceability of raw materials. 
  • The European Union has implemented several regulations (2021-2024) covering the fashion industry, impacting nearly 20% of India’s textile exports. 

Way Forward 

• Strengthening Supply Chains: Develop Vertically Integrated Textile Parks that cover the entire production cycle from fibre to finished apparel, reducing logistical and production costs. 
  • Reassess QCOs on polyester and viscose fibres to allow controlled imports and lower domestic costs. 
  • Develop "fibre-to-fashion" hubs to reduce fragmentation and logistics costs. 
• Leveraging Labour Pools: More PM MITRA parks should be established in Uttar Pradesh, Bihar, and Madhya Pradesh, where job demand is high. 
  • Housing near factories, similar to China’s model, can increase productivity, and improve take-home salaries and reduce attrition rate. 
• Policy Reforms: Secure preferential trade agreements with EU, US, and key markets to improve competitiveness. 
• Boosting MMF: Encourage higher domestic MMF consumption by offering incentives for MMF-based textile production. 
• Sustainability: Provide financial incentives to MSMEs for shifting to sustainable manufacturing and renewable energy adoption. 
  • Fast fashion waste is projected to reach 148 million tonnes by 2030, driving increased demand for recycled textiles, a market where India has significant potential, strengthening waste management infrastructure will be key to sustainable growth. 

Drishti Mains Question:  How does the textile industry contribute to India’s economic growth, and what measures are needed to make it globally competitive?

Challenges in Slum Redevelopment

Source: IE 

Why in News? 

Following a Supreme Court (SC) directive, the Bombay High Court (HC) has initiated a first-of-its-kind review of the Maharashtra Slum Areas Act, 1971. 

• The review aims to address systemic gaps causing delays in slum redevelopment projects, which violate slum dwellers’ right to shelter (Article 21) and livelihood.  

Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971 

• Key Provisions of the Act: 
  • Empowers the Maharashtra government to declare an area as a “slum area” and can acquire (if needed). 
  • Establishes the Slum Rehabilitation Authority (SRA) to oversee redevelopment via private developers. 
• Maharashtra Slum Rehabilitation Scheme 1995: 
  • Under it, private developers (in agreement with the slum dwellers) fund redevelopment and provide finished tenements free of cost.  
  • In exchange, they receive some additional area for construction and selling in the open market. 
  • Developers receive incentives like higher Floor Space Index (FSI) and saleable areas in exchange for free housing for slum dwellers.

What are Slums? 

• About: According to the United Nations, a slum is a run-down area of a city characterized by substandard housing and poverty and lacking in tenure security.  
  • Slums are chaotic, overcrowded, and neglected areas that have emerged as unplanned and unintended settlements due to urban development processes. 
  • The slum population constitutes 17.4% of the total urban population of India (census 2011). 
• Reasons for Growth of Slums: 
  • Population growth and poverty drive the urban poor into expanding slums, with 40% of the population expected to live in urban areas by 2026, creating high land demand. 
  • Climate-induced crises, such as food insecurity and frequent disease outbreaks, can drive population growth in urban slums, further exacerbating unplanned urbanization. 
  • Regional development imbalances drive rural-to-urban migration from less developed (Bihar and Odisha) to prosperous states like Maharashtra and Gujarat.(highest slum population in Maharashtra: 1.18 crore).  
  • Inefficient urban local bodies, unplanned city management, and a lack of political will to develop slums contribute to the worsening of slum conditions. (Dharavi, India’s largest slum in Mumbai). 

What are the Issues Due to the Neglecting of Slum Development? 

• Illusion of Urban Opportunity: Slums may lure the rural poor with the promise of better opportunities, but they often mask the harsh realities and challenges of life in urban slums. 
• Health Risks in Slum Areas: Residents in slum areas face significant health risks, particularly from waterborne diseases like typhoid and cholera.  
• Exploitation of Vulnerable: Women and children in slums are often victims of prostitution, begging, and child trafficking 
• Crime and Social Neglect: The slums are commonly believed to have high incidences of crime due to inadequate government attention to education, law enforcement, and public services.  
  • This contributes to issues like hunger, malnutrition, and limited access to education. 

What are the Challenges in Slum Rehabilitation? 

• Land and Legal Issues: Land acquisition and legal clearances often hindered by bureaucratic processes, and regulatory authorities are major bottlenecks in slum redevelopment projects. 
• Financial Constraints: Securing substantial financial investment for slum rehabilitation projects is challenging, as private developers are often reluctant due to low returns on investment.  
• Social and Cultural Barriers: Rehabilitation in slum communities can face resistance as slum dwellers fear losing their strong social and cultural ties. 
• Environmental Considerations: Environmental challenges in slum rehabilitation include limited green spaces and waste accumulation, as slums often lack proper waste management systems, leading to environmental degradation. 
• Implementation and Governance Issues: Developers delaying projects to inflate land costs hinder slum rehabilitation, as seen in Mumbai's SRA model, criticized for slow execution and lack of transparency. 

Way Forward 

• Holistic slum Rehabilitation: Investments in slum resilience could yield fourfold social returns and significant intangible benefits for society. 
  • Holistic slum rehabilitation interventions, costing around USD 7500 per household, could potentially generate an impact of USD 1.3 trillion in India. 

• Clear Legal Frameworks: Implementing streamlined legal frameworks for land acquisition, like the Delhi Development Authority's (DDA) land pooling policies, ensures fair compensation and legal clarity. 
• Innovative Financial Models: Utilizing Public-Private Partnerships (PPPs), such as the Mumbai Slum Rehabilitation Authority (SRA) model, attracts private investment while ensuring social impact. 
• Community Engagement: Engaging communities in planning, as seen in the Participatory Slum Upgrading Program of UN-Habitat, mitigates resistance and respects residents' social and cultural needs. 
• Environmental Integration: Incorporating green practices, like in Delhi's Kathputli Colony project, improves environmental conditions in slum rehabilitation. 
• Effective Governance & Transparency: Strengthening governance and transparency, exemplified by Ahmedabad's Slum Networking Project (SNP), enhances the effectiveness of slum rehabilitation projects. 

Drishti Mains Question:  “ Q. Discuss the socio-economic challenges faced by slum dwellers in Indian urban areas and suggest measures to resolve these issues

NITI Aayog Calls for Quantum Strategy

Source: ET 

Why in News? 

A research paper titled “Quantum Computing: National Security Implications & Strategic Preparedness” by NITI Aayog’s Frontier Tech Hub (NITI-FTH), highlights the importance of quantum computing for India's security and economy, urging a multi-pronged approach to address national security risks from quantum advancements. 

What are the Key Highlights of NITI Aayog’s Report on Quantum Computing? 

• Global Quantum Investments: Over 40 billion USD pledged by 30+ governments worldwide. China leads with a 15 billion USD investment, followed by the US and Europe. 
• India’s Scenario: The National Quantum Mission (NQM) was launched with a budget allocation of  Rs 6,003 crore to develop indigenous capabilities in quantum technology and position India as a global leader in this emerging field. 
• Implications: It has dual-use applications in the military and intelligence sectors, quantum technology can enhance encryption, improve surveillance systems, and advance weaponry, giving nations a technological edge in defense and national security. 
  • Economically, they can drive innovation, create high-tech industries, and attract investment.  

What are the Challenges Highlighted By Niti Aayog Report on Quantum Computing? 

• Lower Funding Compared to Global Peers: India has allocated ₹6,003 crore (~USD 750 million) for the NQM, which is significantly lower than that of other global players. This limits India's ability to compete in quantum infrastructure, cutting-edge research, and talent acquisition. 
  • Funding gaps hinder large-scale commercialization, delaying India's progress in building quantum supremacy. 
• Weak Domestic Supply Chain: Quantum computing relies on highly specialized components, such as Cryogenic systems for cooling quantum processors, High-purity materials for building stable quantum circuits. India lacks indigenous manufacturing capabilities, leading to heavy dependence on foreign suppliers. 
• Limited Startup and Industry Participation: Unlike the US and Europe, where tech giants like Google, IBM, and Microsoft drive quantum innovation, India's quantum ecosystem is primarily driven by academia.  
  • Lack of private sector investment and venture capital funding limits the scalability and commercialization of Indian quantum innovations. 
• Cybersecurity Risks: Quantum computers will eventually be capable of breaking current encryption standards, making existing cybersecurity frameworks obsolete. 
  • Sensitive government, military, financial, and personal data stored using traditional encryption methods will be at risk. 
  • Online banking, digital payments, and secure communications could be compromised, leading to economic instability and cyber fraud. 
• Intelligence & Espionage: Quantum computing will significantly improve Signals Intelligence (SIGINT), allowing nations to decrypt intercepted communications at an unprecedented scale. 
  • Confidential diplomatic cables, military strategies, and classified intelligence could be exposed, posing serious risks to national security. 
  • Nations with quantum decryption capabilities will gain a strategic advantage in intelligence gathering and cyber warfare. 
  • Adversaries equipped with quantum-powered defense systems could gain an upper hand in military strategy and warfare technologies. 

What is Quantum Technology? Click Here Read More: Quantum Technology   Click Here Read More: Challenges and the Way Forward Related to Quantum Computing.

 

What are the Recommendations Suggested by Niti Aayog on Quantum Computing? 

• Enhancing National Security Policy: Establish a Task Force to continuously track global quantum advancements and assess potential threats. 
  • Develop an Early Warning System to identify and mitigate emerging quantum threats before they impact national security. 
  • Implement a Post-Quantum Cryptography (PQC) Transition Plan to secure government, financial, and industrial data against future quantum cyberattacks. 
• Boosting R&D: Increase R&D funding to accelerate quantum startups and support indigenous hardware development. 
  • Encourage private sector involvement to bridge the gap between academia and industry for faster commercialization. 
• Strengthening Domestic Supply Chain: Develop a robust domestic manufacturing ecosystem for critical quantum hardware components such as cryogenic systems, high-purity materials, and specialized lasers. 
  • Reduce dependency on foreign imports by investing in quantum chip fabrication and hardware production facilities. 
• Expanding Global Partnerships: Forge bilateral agreements with leading quantum nations such as the US, European Union, and Japan to gain access to cutting-edge research, hardware, and expertise. 
  • Advocate for relaxed export controls on critical quantum components to ensure uninterrupted access to essential technologies. 

Drishti mains Question  Q. Quantum technology is set to reshape global security and economic landscapes. Discuss the security challenges posed by quantum computing and suggest measures India should take to safeguard its national interests.

Dholavira

Source: PIB

The President of India visited Dholavira, appreciating the technological advancements of the Harappan civilization. 

• Harappan (Indus Valley) Civilization: 
  • It was an urban civilization that flourished along the Indus River from around 3300-1300 BCE. It was discovered by John Marshall in the 1920s. 
  • Major sites of the Harappan civilization include Harappa, Mohenjo-daro, Banawali, Dholavira, Lothal, and Ropar.  
• Dholavira: 
  • It is located in Kutch (arid island of Khadir), Gujarat, is a significant archaeological site inhabited from 3000 BCE to 1800 BCE.  
    • It was discovered by Jagatpati Joshi in 1968.  
  • It is the fifth-largest site of the Indus Valley Civilization and lies between two seasonal streams, Mansar and Manhar.  
  • Archaeological findings include terracotta pottery, seals, ornaments, and evidence of metallurgy. It was a trade hub for copper, jewelry, and timber, with inscriptions in Indus Valley script.   
    • No human remains have been found at the site. 
  • Dholavira features a walled city with a fortified castle, middle and lower towns, and a cemetery.  
    • Its advanced water system includes 16 reservoirs and step wells. 
  • It was declared a UNESCO World Heritage Site in 2021. 

Read More: India’s 40th World Heritage Site: Dholavira

Carbon Intensity

Source: TH 

Carbon intensity measures the amount of carbon dioxide (CO₂) emitted per unit of output in a specific sector or economy. It helps track progress in reducing emissions while accounting for economic growth or production levels. 

• For example, the carbon intensity of the steel sector can be measured as the number of tonnes produced per tonne of CO₂ emitted. 
• National Carbon Intensity: A country's carbon intensity is measured by dividing Gross domestic product (GDP) growth per capita by CO₂ emissions. 
• Significance for India & Climate Goals: Carbon intensity plays a crucial role in assessing climate commitments under the Paris Agreement (2015) and reducing Emissions Intensity of its GDP by 45% by 2030, from 2005 level. 
  • Carbon intensity supports sustainable economic growth while lowering environmental impact. 

Read more: India's Carbon Market: A Green Leap Forward

Colossal A23a Iceberg Stuck

Source: HT 

The world's largest iceberg, Colossal A23a (3,672 sq. km), is stuck about 70 km from South Georgia Island, likely avoiding ecological harm to its wildlife habitats. 

• A23a broke from the Filchner Ice Shelf (Antarctica) in 1986 and remained stuck in the Weddell Sea for over 30 years and started drifting north in 2020 towards South Georgia Island. 
• Nutrients released from the iceberg’s grounding and melting may boost marine food availability, supporting the regional ecosystem. 
• South Georgia Island: The UK administers South Georgia (also claimed by Argentina) as a British overseas territory. 
• Icebergs: Icebergs are large floating masses of freshwater ice that break off (calve) from glaciers or ice shelves and drift in oceans or seas.  
  • Since ice is less dense than water, 90% of an iceberg stays submerged, with only the top visible. 

Read More: Iceberg A68a

Starlink and Eutelsat

Source: IE 

Ukraine’s military and civilians rely on Starlink for communication, but SpaceX’s restrictions on its use for attack drones have raised concerns. As a result, Eutelsat, a European satellite company, is being considered as an alternative. 

• Starlink: Developed by SpaceX, it is a satellite-based internet service designed to provide high-speed, low-latency connectivity, especially in remote areas.  
  • Starlink's around 7,000 low-earth orbit (LEO) satellites form a mega-constellation, ensuring global coverage. 
  • India has not approved Starlink due to security, privacy, and pricing concerns, along with opposition from the local telecom and satellite industry. 
• Eutelsat: Eutelsat, Starlink’s closest competitor, operates 630 LEO satellites and 35 geostationary satellites, offering speeds up to 150 Mbps. 
• India lacks widespread commercial satellite internet, but the Telecommunications Act, 2023 provides for the assignment of spectrum through an administrative process for satellite-based services, whereas terrestrial spectrum is allocated through auctions. 

 

Read more: Starlink Project