Few industries have shaped India’s civilisation as profoundly as textiles. Long before modern concepts of global value chains emerged, textiles were already woven into India’s economic, cultural and commercial fabric. Archaeological excavations at Harappa and Mohenjodaro (dating back 4,500 years) have uncovered spindle whorls, needles and dyeing artefacts, among the earliest evidence of textiles. What began in the Indus valley was sustained through centuries of trade, innovation and craftsmanship.

For nearly two millennia, Indian fabrics clothed consumers across Asia and Europe. During the Mughal period, Bengal became the world’s premier centre for cotton textiles. Dhaka produced the legendary muslin prized by royalty across continents, while Murshidabad, famous for its silk and muslin, emerged as one of the 18th century’s wealthiest commercial centres. The economic significance of all this was immense. India accounted for one-fourth of global economic output in 1700, according to Angus Maddison. Then the Industrial Revolution happened, powered by James Hargreaves’ spinning jenny and other mechanised weaving technologies. These disruptive technologies changed the rules of the game, in this case competitiveness. Competitive advantage stopped being about artisanal skill and became about technology, productivity and economies of scale. India increasingly became a supplier of cotton to Lancashire mills and a market for manufactured textiles.

Independent India’s textile journey has been an effort to reverse this. India today possesses a fully integrated textile value chain, from cotton to spinning, weaving, processing, garment manufacturing and exports. The key catch is the employment intensity........

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