It is observed by the analyst that India is losing its competitive advantage in the textile and apparel sector. The government has decided to appoint consultants to improve the country’s performance. The Government is planning to engage a Consulting firm to spot new opportunities for market expansion, maintaining a database on International tariffs, growth Trends, free trade agreements, installed capacity, production, and employment in the textile sector.
“We want to appoint a consulting company. It will assist the ministry in sensitizing the Indian industry of the global market scenario and emerging trends to help identify new opportunities for market expansion,” said an official.
It will also provide inputs for the promotion of foreign direct investment especially in textile parks, and intellectual property rights issues including geographic indications in textiles and handicrafts.
The development comes in the wake of India’s exports of cotton yarn shrinking 10.7% on year in FY20 while readymade garment exports contracted 4%.
The consultant will also be tasked to review India’s existing FTAs, need for new FTAs, data to support trade talks, and multilateral arrangements as well as issues pertaining to non-tariff barriers. The exercise is aimed at providing export intelligence and strategic support to the sector through timely addressal of policy-related issues of all the segments.