New Delhi, Jan. 30 -- The textile sector, a key pillar of India's economy, faces critical challenges, including high customs duties on cotton imports, rampant under-invoicing of knitted fabric imports, and the need for extended export incentives and broader PLI (Production-Linked Incentive) coverage.

The industry, which contributes approximately 4 per cent to the nation's GDP, 13 per cent to industrial production, and 8 per cent to merchandise exports, also employs around 4.5 crore people directly.

A major concern for the sector remains the customs duty on cotton imports. The imposition of an 11 per cent duty in 2021 has led to a significant price gap between domestic and international cotton, making Indian cotton uncompetitive.

Accord...