The textile industry in Odisha has been gaining traction in recent years, positioning the state as an emerging hub for textile manufacturing in the eastern region of India. This growth can be attributed to the industry-friendly policies implemented by the state government, which have attracted top apparel and textile companies to invest substantial capital in the region.

Government’s proactive initiatives in the industry sector, like “Make in Odisha Conclave”, “Industrial Policy 2022”, “Odisha Apparel and Textile Policy”, “Odisha Logistic Policy 2022” and “Export Promotion Policy 2022” is expected to give a fillip to development of a robust industrial ecosystem in Odisha.

Odisha has the unique advantage of having convenient access to port, availability of skilled manpower and proximity to both, raw material sources as well as demand clusters. From an incentive and regulatory support standpoint, Odisha, amongst the eastern states, has a host of schemes and initiatives under the industrial policy, and has seen considerable investments over the last few years. Government has envisaged a cluster based approach to tap into this opportunity and initiatives to set up a world scale textile park in Odisha are well underway.

Opportunities in Odisha’s Textile Industry:

• Investment Potential: Odisha offers an investor-friendly industrial environment with easy access to raw materials and manpower, making it an attractive destination for textile manufacturers looking to establish or expand their operations. The Odisha Government has attracted substantial investments, amounting to Rs. 2,100 crore, in the apparel and garment industry
• Government Support: The state government has introduced various incentive schemes, benefits, and subsidies for the textiles and apparel sector, further encouraging investment in the industry. These initiatives aim to create a conducive environment for businesses to thrive.
• Abundance of Raw Materials: Odisha is endowed with an abundant supply of raw materials such as cotton, silk, and jute, providing a competitive edge to the textile industry in terms of sourcing inputs. This availability helps in reducing production costs and ensures a steady supply chain.
• Skilled Workforce: The state boasts a skilled manpower and ‘karigars’ with expertise in various aspects of textile manufacturing, including weaving, dyeing, and stitching, which is essential for the growth of the industry.
• Proposed Textile Park: Indian Oil Corporation (IOC) is set to establish a textile park in Bhadrak, Odisha, which is projected to be operational by 2024, further bolstering the textile industry in the region

Challenges Faced by the Textile Industry in Odisha:

• – Infrastructure Development: Despite the progress, there is a need for further infrastructure development, including better transportation networks and industrial parks, to facilitate the smooth functioning of the textile industry.
• – Technological Advancements: To compete on a global scale, the industry must adopt modern technologies for efficient production processes and higher quality output.
• – Market Competition: The textile industry is highly competitive, both domestically and internationally. Odisha-based manufacturers need to differentiate themselves through innovation, quality, and cost-effectiveness to remain competitive.
• – Environmental Concerns: Sustainability and environmental compliance are becoming crucial factors for consumers and investors alike. The industry needs to invest in eco-friendly practices and technologies to meet these expectations.

Odisha’s textile industry stands at the cusp of transformative growth. To harness the full potential of Odisha’s emerging textile industry, a strategic approach is necessary. Addressing the challenges, particularly in infrastructure development, technology adoption, and environmental sustainability, will be pivotal. Collaboration between the government, industry stakeholders, and educational institutions can help bridge the skill gap and foster innovation.

The state’s abundant resources, government support, and skilled workforce provide a solid foundation. However, overcoming challenges related to infrastructure, technology, and sustainability will be paramount. With concerted efforts, Odisha has the potential to emerge as a significant player in India’s vibrant textile sector, contributing to both regional development and the nation’s economic growth.

Get to know more subsidies being offered by Odisha government.

Anvesh kumar
Consultant