India Textiles, Agriculture, and Manufacturing in Modi 3.0
June 6, 2024 The world recently witnessed the largest festival of democracy in India with about 642 million voters exercising their fundamental rights.
Economic development activities and growth should resonate with the public. Agriculture, textiles, and manufacturing can vitalize rural and semi-urban areas in large and diverse nations such as India. Even in advanced nations such as the United States, rural communities such as those throughout West Texas are dependent upon agricultural economy.
India is a major player in cotton production and textile manufacturing and exports. In India, Prime Minister Narendra Modi will be forming the government for the third time with support from his allies in the National Democratic Alliance. India – being the world’s largest democracy with about 980 million eligible voters, its economic rise, and its place in the geopolitical space – is considered as a viable counter to China.
Agriculture and employment issues have been at the forefront of this parliamentary election in India. The new government need to focus on those areas that positively impact rural and urban population with inclusive economic policies to win over the confidence of the population. Inclusive development with a year-on-year growth of over 8% with jobs will set India in the path toward its goal of becoming a developed country by 2047 – the 100th year of Indian independence.
In speaking to his party supporters on June 4, Prime Minister Modi stressed the importance of self-sufficient farmers, a self-dependent defense sector, and the need to boost green manufacturing. Given that his third term would focus on climate change issues, food security, and global supply chain stability, policies should support productive manufacturing, agriculture, and high-tech sectors such as semiconductor chips and electronics.
I recently spoke with two textile industry veterans from Tamilnadu who expressed that they are optimistic that the new government would develop policies to boost exports of textiles with the aim of boosting employment. In my opinion, the government will aim to strengthen manufacturing and unveil supportive policies for agriculture. Such a balanced approach will enhance skill sets for the labor force to have high paying jobs and strengthen agriculture.
Given the current political scenario, Bharatiya Janata Party headed by Prime Minister Modi with support from Telugu Desan Party and Janata Dal (United) will focus on rural and suburban economic growth. As the two allies are from States that have a large agricultural base on the plains of the Ganges, Godavari, and Krishna rivers, rural development and skill enhancement for high wages will receive favorable considerations among other priorities such as infrastructural investments.
Agriculture and textiles provide more employment and need support to tackle the national unemployment issue. Policies supporting reliable farm income and stability in crop prices need to be drafted which will receive support across party lines and strengthen the government.
As the Prime Minister outlined in his latest speech: to strengthen the agriculture and defense sectors, the textiles industry has a role to play in terms of enhancing the cotton sector, building a R&D base, and boosting SMEs that focus on composites, defense materials, and more. Stakeholders in the sector such as crop production, textiles, and garment manufacturing should proactively engage with the government to help craft policies for win-win growth.
In addition to boosting domestic consumption, the focus should be to enhance exports. The Indian government should engage with international partners, particularly in the Western Hemisphere, to strengthen trade agreements as countries like the United States are trying to move away in trade from China due to the geopolitical scenario and wanting to stay competitive against China.
The Indian textile industry should utilize the opportunity to present itself as a reliable alternative to China.
Balanced economic growth needs to involve agriculture, textiles, and manufacturing to have development with job creation.
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