Discuss the role of Ready-Made Garments in driving India's textile export performance. What policy measures can sustain this momentum?

Ready-Made Garments (RMG) — the final, highest value-added stage of the textile chain — anchor India's export basket because they convert domestic cotton and man-made fibre into employment-intensive, branded output. In the current recovery, RMG remain the base of the sector's performance, though no longer its fastest-growing segment.

RMG as the driver of export performance

• In FY 2025-26, when textile exports grew only 2.1% to ₹3.16 lakh crore, RMG was the lead contributor — sustaining the sector through a flat year [1].
• RMG carry the highest value addition per unit of raw material, so garment orders earn more foreign exchange than yarn or fabric exports of similar volume.
• Garmenting is India's most labour-intensive manufacturing activity, concentrated in Tiruppur, Surat and the NCR, and a major source of women's workforce participation.
• RMG stayed positive at 6.1% in August 2026, within an overall rise of 16.1% to ₹29,776 crore [2].

Qualifying the RMG story

• August 2026 growth was broad-based, not RMG-led — cotton textiles rose 24.1% and handicrafts 41.4%, while RMG lagged at 6.1% [2].
• Indian garments face a tariff handicap: Bangladesh enjoys duty-free entry to major markets as an LDC, a benefit it loses on graduation [3].
• Small firm size limits India's ability to absorb bulk orders on tight delivery schedules.

Policy measures to sustain momentum

• Accelerate PLI for Textiles disbursal — of a ₹10,683 crore outlay, only ₹54 crore had been released to two firms for FY 2024-25, as payout triggers on both investment and turnover thresholds [4].
• Operationalise PM MITRA parks (7 parks, ₹4,445 crore outlay) to build scale, measuring success by operating factory area rather than MoU value [5].
• Conclude FTAs (UK, EU) to neutralise the tariff gap, and deepen man-made fibre capacity, where global demand is shifting.
• Fund design, compliance and logistics upgradation for MSME exporters.

RMG thus remain the sector's employment and value-addition backbone, even as the present surge is demand-led and broad-based. Converting this cyclical recovery into structural gain requires scale, market access and timely delivery of announced incentives — aligning textile policy with the decent-work goals of SDG-8.