QUESTION– What are the
challenges of the Indian Textile Sector? Discuss ways and means to increase
domestic manufacturing and promotion of exports in the Textile Sector.
high quality
QUESTION
INTRODUCTION
INTRODUCTION
Indian textile industry is one of
the largest industries in India. It is the second largest industry in terms of
providing employment opportunities to more than 35 million people in the
country. Indian Textile industry contributes to 7 per cent of industrial output
in terms of value, 2 per cent of India’s GDP and to 15 per cent of country’s
export earnings.
BODY
BODY
Challenges
of the Indian Textile Sector
Challenges
of the Indian Textile Sector
- The Indian Textile Sector is losing
to competition because of lack of FTAs
(Free Trade Agreements) with the EU and the USA - The small scale of business is
making it difficult for textile manufacturers to compete on cost with players
from outside - India is facing huge competition
from other countries in Ready-made Garment (RMG) Exports, particularly cotton .And
while the world of fashion is moving towards “Blends”, India is not making many blended apparel
items. So on the one side our traditional items are facing competition, and on
the other side we are behind in Product Diversification - Textile imports from Vietnam and
Bangladesh are cheaper for buyers across the world
to competition because of lack of FTAs
(Free Trade Agreements) with the EU and the USA
making it difficult for textile manufacturers to compete on cost with players
from outside
from other countries in Ready-made Garment (RMG) Exports, particularly cotton .And
while the world of fashion is moving towards “Blends”, India is not making many blended apparel
items. So on the one side our traditional items are facing competition, and on
the other side we are behind in Product Diversification
Bangladesh are cheaper for buyers across the world
Remedies to address the above Challenges
Remedies to address the above Challenges
- Favorable FTAs (Free Trade Agreements) and
Market Diversification Strategies will help, what is needed to grow our overall
Textile Exports is bringing in a ‘Fibre Neutral Policy’. The tax rate on all
textile raw materials should be same. If this change is brought about- textile
companies will make and sell more blended textile items like cotton viscose,
cotton polyster and our Export Competitiveness will also improve - Centre has doubled the import duty
on 300 plus textile products. It is a good move and will help domestic
manufacturers - MSP for cotton is increased-
definitely more farmers will go for cotton. But the long term solution is to
increase average yield. We need to catch up from 550kg/hectare levels since
many countries have crossed 1000kg/hectare yield. Experts feel that India
should announce a New Cotton Technology Mission to achieve this - In Spinning, India is very
competitive .We are able to export yarn to many countries including China,
because we have the technology, size, quality, productivity and ability to
manufacture at very low cost. We should work towards global benchmarks in terms
of new techniques in manufacturing , particularly improving operational
efficiency - Industry side we
are trying to introduce some best practices at farming and ginning stages
Market Diversification Strategies will help, what is needed to grow our overall
Textile Exports is bringing in a ‘Fibre Neutral Policy’. The tax rate on all
textile raw materials should be same. If this change is brought about- textile
companies will make and sell more blended textile items like cotton viscose,
cotton polyster and our Export Competitiveness will also improve
on 300 plus textile products. It is a good move and will help domestic
manufacturers
definitely more farmers will go for cotton. But the long term solution is to
increase average yield. We need to catch up from 550kg/hectare levels since
many countries have crossed 1000kg/hectare yield. Experts feel that India
should announce a New Cotton Technology Mission to achieve this
competitive .We are able to export yarn to many countries including China,
because we have the technology, size, quality, productivity and ability to
manufacture at very low cost. We should work towards global benchmarks in terms
of new techniques in manufacturing , particularly improving operational
efficiency
are trying to introduce some best practices at farming and ginning stages
CONCLUSION
CONCLUSION
Exports are critical, but textile manufacturers should focus
on the opportunities in the domestic market too .With increase in disposable
income and higher aspirations, India is going to be a faster growing clothing
market in the world. Through Trade Agreements such as India- Mercosur PTA
(Preferential Trade Agreement) and Eurasia- India FTA (Free Trade Agreement) we can bring more volumes to the Export
Trade.
