Written by: Abhishek Sinha Page 1
Overview of Indian Garment Industry
Gone are the days when big department stores such as Wal-Mart, Sears and JC Penny used tostock Indian and Chinese garments. This is slowly changing. While the Chinese invasion iscontinuing, Bangladesh which has overtaken India is extending the lead and Vietnam is all set toovertake India in garment exports, once monopolized by India.Garment exports from India dropped 2.64 per cent to $ 10.64 billion in 2009-10 compared to$10.93 billion in the previous financial year, according to the latest data released by the ApparelExport Promotion Council (AEPC).
“The first two months of the current financial year have shown 5.23 per cent decrease in rupee
terms, as compared to the previous year. Exports of apparel are highly price sensitive... Indiangarments are overpriced due to high input costs and duty and they are being priced out bycountries like Bangladesh and Vietnam.Bangladesh, which is only half the size of Maharashtra, today exports almost $13 billion apparel.This is roughly 20 per cent more than Indian garment exports.The unprecedented rise in price of raw materials (cotton & yarn) over the past few months andalso general increase in all other costs due to hike in duty of petroleum products has made Indiangarments uncompetitive in the world market.
“While our exports are falling, exports from low
-cost countries such as Bangladesh, Vietnam andCambodia continue to rise. The slowdown in the global economy has hit our garment exports.Exports to Europe which was facing a debt crisis have fallen. The US market is still fragile.The textile and garment sectors play an extremely significant role in India in terms specially of share in value added, foreign exchange earnings, and employment. With the impendingdismantling of quotas in 2004 under mandate from the Agreement in Textile and Clothing of theWTO, the focus has clearly shifted to the future of the Indian textile and clothing exports.
Overview of Garment Manufacturing Technology
India being a garment exporting country, most of the garment manufacturing companies herework as exporters. Hence the orders they receive are from overseas buyers. The buyers sendeither a sample of the garment or a Tech Pack (Technical package) along with SpecSheet(Specification Sheet) of the garment which contains flat sketch of the garment along withmeasurements of various parts, fabric details, trims details, stitching instructions, print and/orembroidery instructions and finishing instructions. Manufacturers work according to the techpack and mass produce the garments.