31 March 2025 Indian Express Editorial
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Editorial 1 : Thread and Weave of Reform
Context: Textile industry in India
Introduction: India’s ambitious target to elevate its textile and apparel (T&A) exports from $34.8 billion in 2023-24 to $100 billion by 2030 raises the question on feasibility of the target.
Current Status and Global Context
- Historical Growth: From $11.5 billion in FY 2001 to $34.8 billion in FY24. This is a steady growth but is insufficient for the $100 billion target.
- Competitor Performance
- Bangladesh: Global apparel share rose from 2.2% (2000) to 9.6% (2023).
- Vietnam: Global apparel share jumped from 1% (2000) to 5.8% (2023).
- China: Lost market share (34.8% to 29.8% post-2010), creating opportunities which others captured.
Key Challenges in the Textile Value Chain
- Farm-Level Issues: Decline in Cotton Production
- Bt cotton adoption (2002) boosted production from 13.6 million bales (2002-03) to 39.8 million bales (2013-14).
- Current Crisis
- Production projected to drop to 30 million bales (2024-25), which is lowest in 15 years.
- India is set to become a net cotton importer (2.6 million bales imported vs. 1.5 million exported in 2024-25).
- Cause: Delayed approval of next-gen GM seeds (e.g. herbicide-tolerant Bt cotton) despite GEAC clearance.
- Structural Weaknesses in the Textile Industry
- Cotton vs. MMF Imbalance
- India’s cotton-to-man-made fibre (MMF) ratio is 60:40, compared to global average of 30:70.
- High MMF raw material costs (e.g. polyester, viscose) i.e. 20% costlier than competitors.
- Fragmented Garment Sector
- 80% of garment factories are decentralized, leading to inefficiencies.
- Slow adoption of modern technology and weak value chain integration.
- Cotton vs. MMF Imbalance
- Policy and Market Access Barriers
- Tariff Disadvantages
- EU tariffs: 9.7% on Indian apparel vs. 0% for Bangladesh (GSP Everything but Arms” arrangement) and 1.66% for Vietnam (EU-Vietnam FTA).
- US tariffs: 11.47% on Indian apparel.
- Limited FTAs: Lack of agreements with key markets (EU, US) restricts competitiveness.
- Tariff Disadvantages
Growth Opportunities
- Global Apparel Market: Expected to reach $2.37 trillion by 2030.
- Emerging Markets: Japan, Russia, Brazil, and South Korea offer potential for niche products (western wear, swimwear, etc.).
- PM-MITRA Scheme: Aims to develop integrated textile parks, but challenges persist (e.g. exclusion of MSMEs due to high land requirements).
Way Forward: Strategic Recommendations
- Boost MMF-Based Apparel
- Remove non-tariff barriers (e.g. quality control orders on MMF).
- Incentivize investment in MMF production to align with global trends.
- Fast-Track PM-MITRA Scheme
- Create integrated textile hubs for scalability and efficiency.
- Address MSME exclusion by revising land requirements.
- Negotiate Critical FTAs
- Prioritize agreements with EU and US to reduce tariff disadvantages.
- Explore partnerships with emerging markets to diversify exports.
- Revive Cotton Productivity
- Streamline GM seed approvals: Accelerate adoption of next-gen pest-resistant cotton varieties.
- Invest in farming techniques: High-density planting, precision farming, and irrigation expansion.
- Bridge productivity gap: India’s cotton yield (435 kg/hectare) lags behind China (1,945 kg/hectare) and Brazil (1,839 kg/hectare).
- Transition to a Fashion-Driven Industry
- Focus on high-value segments (e.g. women’s western wear, intimate wear).
- Leverage India’s design and craftsmanship strengths.
Conclusion: The target of $100 billion textile and apparel (T&A) exports by 2030 will only be achievable by bold reforms and policy agility. Failure to reform could leave India’s T&A exports stagnant, with competitors further consolidating their global dominance.
Editorial 2 : The Nuclear Leap
Context: Nuclear Energy in India
Key Policy Shift
- Opening to Private Sector: The government announced the opening of India’s nuclear sector to private players, marking a historic shift.
- Legislative Reforms: Amendments to the Atomic Energy Act and Civil Liability for Nuclear Damage Act are under consideration to enable private participation.
India’s Energy Challenges
- Growing Demand
- Electricity demand projected to triple by 2047.
- Current fossil fuel dependence at 70%.
- Paradox: Balancing economic growth with carbon reduction and energy security.
- Nuclear Energy as a Solution
- Baseload Power: Unlike solar/wind, nuclear energy provides uninterrupted supply.
- Sustainability: Minimal carbon emissions. India can leverage its vast thorium reserves which is world’s largest.
Three-Stage Nuclear Programme
- Stage 1: PHWRs (Pressurised Heavy Water Reactors) using natural uranium.
- Stage 2: Fast Breeder Reactors (FBRs) to utilize plutonium and thorium.
- Prototype Fast Breeder Reactor (PFBR) nearing completion.
- Stage 3: Thorium-based reactors for energy self-sufficiency.
Current Nuclear Landscape
- Capacity Growth
- Installed capacity surged by 70% from 4,780 MW (2013–14) to 8,180 MW (2023–24).
- 24 operational reactors; 21 new reactors (15,300 MW) under construction.
- Technological Milestones
- Indigenous 700 MWe PHWR commissioned at Kakrapar, Gujarat (2023–24).
- Radiation levels at nuclear plants well below global benchmarks (e.g. Kudankulam: 0.002 microsieverts).
Future Goals & Initiatives
- Nuclear Energy Mission for Viksit Bharat: 100 GW nuclear capacity by 2047 as compared to 8.18 GW today.
- Technological Innovations
- Small Modular Reactors (SMRs): ₹20,000 crore allocated for R&D. Target of 5 indigenous SMRs by 2033.
- Bharat Small Reactors (BSRs): 220 MW PHWRs for industrial decarbonization.
- Public-Private Partnerships: ASHVINI: Joint venture between NPCIL and NTPC to develop nuclear facilities.
- International Collaborations
- 6 reactors (1,208 MW each) planned with the US at Kovvada, Andhra Pradesh.
- Partnerships with Russia and France for reactor technology.
Challenges
- Public Perception: Safety concerns persist despite India’s exemplary safety record (safety first, production next ethos).
- Financial & Legislative Hurdles: Need for liability law amendments to attract private investment.
- Balancing Growth & Sustainability: Integration with renewables (solar/wind) to ensure grid stability.
Conclusion: Nuclear energy is pivotal for India’s energy security, decarbonization, and self-reliance. Nuclear success in India requires public awareness, technological innovation, and global partnerships. Success hinges on balancing expansion goals with safety protocols and financial viability.
