Union Textile Minister Giriraj Singh’s recent visit to the National Institute of Fashion Technology in Chennai highlighted India’s missed opportunity to capitalise on the current turmoil in Bangladesh’s ready-made garment (RMG) sector.
While Bangladesh, a major global RMG exporter with annual exports exceeding $50 billion, is facing social and political unrest, India, with its significantly larger workforce of 4.6 crore textile workers, has been unable to fully leverage this situation.
Capacity Constraints and Policy Hurdles
Industry experts attribute India’s inability to capitalise on the opportunity to several factors:
- Limited Fabric Capacity: India’s current fabric capacity is fully booked, hindering its ability to meet the increased demand from global buyers.
- Policy Challenges: Bangladesh’s status as a ‘least developed country’ grants it preferential treatment in terms of free trade agreements and import duties, providing a 12-14% advantage over India.
- MSME Dominance: The Indian textile industry is predominantly composed of MSMEs, which face challenges in scaling up and meeting the stringent requirements of global brands.
The Way Forward
To address these challenges and capitalise on the emerging opportunities, the Indian government and industry stakeholders need to take several steps:
- Capacity Augmentation: Invest in expanding fabric manufacturing capacity to meet the growing demand.
- Policy Reforms: Advocate for favourable trade policies and incentives to enhance India’s competitiveness.
- MSME Support: Provide financial and technical assistance to MSMEs to enable them to scale up and meet international standards.
- Skill Development: Invest in skill development programs to create a skilled workforce.
- Infrastructure Development: Improve infrastructure, including ports and logistics, to facilitate efficient exports.
By implementing these measures, India can position itself as a reliable and competitive alternative to Bangladesh and other RMG exporters, contributing to the growth of the domestic textile industry and boosting India’s overall economic growth.
