what india needs to Gain a Good position in Garment exports
achieving Scale across the Value chain
In the Indian textile and apparel sector, the subsectors of weaving, processing and garmenting are fragmented and lack the requisite scale for success in global markets. Most manufacturing units have small capacities and low manufacturing efficiencies – both pose as major disadvantages in the global scene. To bring them at par with global counterparts, there is a need to facilitate rapid growth and modernisation of existing firms with the potential for success. In addition, it would be necessary to attract large-scale investment for manufacturing state of the art facilities at each level of the value chain.
attract investment in the Sector
The sector needs to be made attractive to investors. It needs investment of US$ 180 billion to US$ 200 billion to achieve a production capacity of about US$ 650 billion by 2024- 25, according to the Ministry of Textiles. The answer to this formidable challenge of getting investments to such a large scale is to ensure that the returns on investments are attractive for investors. Moreover, the investments need to be adequately incentivised. The most important requirement is the maintenance of a competitive exchange rate. The other essential prerequisite for getting investments to this scale is to ensure the ready availability of developed land with adequate infrastructure, skilled human resources and easy connectivity to ports. Creating new mega textile parks would be the way forward.
Skill, Quality and productivity
There is a need for skilled labour for achieving the production capacities envisaged. The Government of India has estimated the requirement of additional skilled labour of 35 million, which is a daunting task. A productive and skilled work force is the sole means to achieve global competitiveness. This is the only way India can derive the full benefit of the extant demographic and wage advantages. Investments in improving the skills and productivity of the workforce by both private industry as well as the government in genuine partnership has been a weak point of the Indian garment industry.
Manufacturing Competitiveness in Terms of Cost Factor