what in­dia needs to Gain a Good po­si­tion in Gar­ment ex­ports

Perfect Sourcing - - Cover Story -

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.

Source: Wazir Re­search and Anal­y­sis

Man­u­fac­tur­ing Com­pet­i­tive­ness in Terms of Cost Fac­tor

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