4 Things Indian Textile Industry Should Do Immediately To Address Global Competition

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Indian Texpreneurs Federation was formed by like-minded individuals from various functions of the textile industry right from spinning, weaving and more. The key motive behind this forum is to bring cooperative competition for collaborative growth. In an exclusive chat with Textile Value Chain, Prabhu Damodharan, Convenor of the forum speaks on the key challenges and steps which are ahead for the Indian textile industry as a whole.

Four key aspects Indian Textile industries Should adopt:

Value-added product: This is the foremost aspect of the entire value chain. Within the apparel export, we need to capture the value-added-products. For example, if you analyze the top items from the apparel export in India, out of the top 30 high volume products, 43% earn below USD 6. India’s single largest export is a T-Shirt which is at USD 2.4. This situation should change as India should move from low-value-product towards high-value-products. At present, while the existing products might be profitable, we should also consider the increase in manufacturing costs.

Large scale manufacturing: We need large scale apparel manufacturing in India. We need big numbers for making bigger profits. Right now with small scale production, India is not fit for a large scale export. Thus, for bagging bigger orders from various countries, India needs a large size production units for which the governments should bring special scheme for the apparel sector.

Product diversification: Out of 27 apparel items, we are commanding a decent size of business only in six materials. There are a few items where we are not even present. Business owners should think on those lines and we should have a clear idea on having diverse products and the government should also come up with a favourable duty structure. This will be possible if all raw materials fall under the same GST slabs.

Market diversification: This is another need for the industry on an emergency basis. Exporters depending solely on selected markets is not advisable. There is an urgent need to diversify into markets like Japan, Russia, Brazil, and others.

Prabhu says that the current export market is close to USD 37 Billion and domestic is USD 100 Billion and Tamil Nadu has the advantage of having the entire manufacturing Eco-system for textiles. “For every 70 km, there is a textile hub either in the manufacturing or service related to textile. These were naturally built and hold a history of more than 100 years”, he says.

Market intelligence platform of ITF:

ITF has close to 700 members representing the entire value chain. Some of the key activities of the forum include sharing knowledge on a daily basis, collectively sourcing raw materials. The major aim of the forum is to work with the cooperative competition to achieve collaborative growth. One of the key innovation of the association is the market intelligence platform. “We had created this platform where everyone shares the data they sell. Based on the inputs from them, we produce results and help the business owners analyze the trends in an effective manner. “, he says.

The association also conducts regular events and seminars on a wide range of topics to educate their members.

by – Swaminathan Balasubramanian , TVC Editorial Team