Macro level, RCEP (Regional Comprehensive Economic Partnership) Trade Agreement has been rejected by India as it was not favouring Indian industry interest. Trade Agreement / Bi lateral treaty is for objective of reduce the trade deficit between the country, across the industry. Treaty between countries are strategic decisions made by authority considering natural resources, people mindset/ religion, population, stage of evolvement of country ( Developed, Developing, under Developed), many more factors. India already have approximately 23 % trade deficit combing average of all countries of world.
Micro level, Cotton yield is better in India due to good rainfall this year. CAI Estimated 354.50 lakh bales of 170 kgs. And Import of 25 lakh bales. This will increase production of cotton fabrics and garments which will increase export.
Textile being commodity industry and without any entry/ education barrier , many people entered in the industry with herd mentality, same products with no differentiation, TUFF , other policy benefits etc. But once policy benefits over, sluggish markets ; industrialist not very keen to go the next level to do research and make some unique products and give different solution to industry. When any industry mindset is only to make money and not to give customer oriented solution, it will result in pain , shut downs.
Few Developed countries, already changed their path from commodity products to Technical Textile products, niche segments though market for these are yet in evolving stage but estimated that next 5 years it will be on growth stage based on people changing lifestyle. Diversification from commodity to niche /unique is the only way to evolve in this sluggish market, As commodities mass production has already captured by Bangladesh, China, Vietnam in Asian Continent.
Hope industry will change mindset from government benefits to research oriented mindset !
Wish you fruitful and Productive Hindu New Year ..!!
Jigna
