Professional Documents
Culture Documents
CIA Assignment
Apparel Industry
SETTINGS
The manufacturing facilities from the developed countries are shifting to
developing countries due to many reasons such as low labor cost, low cost of
manufacturing & materials, and increasing demand in the global market.
Most of the countries in Asia are the leading manufacturer of garments and
clothes but still they face many challenges. China, one of the leading suppliers
of textiles and clothing items around the globe followed by other European
countries in the world.
13% of India's total exports that is 37 billion US dollar is the value of total
exports of India from the textile industry.
Rise of labor cost in china - Due to the rise of labor cost in China the cost of
production increases in textile Industries. Due to the increase in the cost of
Labor the cost of production increases and the price of the finished product
goes up.
But India was unable to make use of this opportunity which led to the decline in
the total exports of India as well as income of the country.
Competition from small players - The competition is not really from bigger
economies like China but also from smaller economies like Bangladesh and
Vietnam so India is not only facing competition from large economies like China
& USA but also from small countries like Bangladesh.
PROBLEMS IN TEXTILE INDUSTRY
Shortage of raw materials- India is short of raw material like cotton, long-
staple cotton as the raw material imported from other countries like Pakistan,
Kenya, Uganda, Sudan, Egypt, Tanzania, USA, and Peru.
Loss due to Covid 19- As per report by THE ECONOMIC TIMES last year
the industry was hit severely due to global slowdown, but things started to
get normal from November onwards. Still, then in February, Coronavirus hit
the industry. This industry is the worst hit not only in India but also all over
the world.
Sick mills -In India about 130 cotton mills are sick and in losses. The
Govern-ment has set up a National Textile Corporation (NTC) which runs the
sick mills. Although govern-ment has invested huge amount of money to
modernize these mills, these are yet to be profitable.
Import and Export- Indian cotton textile goods face intense competition in
foreign markets like Taiwan, South Korea, and Japan, providing cheaper and
better goods. In a country like India, where costs are low and cotton is
readily available in-country, the production cost is high.
As per recent stats, wool prices have recorded high price this year on
booming demand. Industry representatives fear is that the rise in prices of
imported raw materials has increased the prices of dyes which are made by
for Gujarat-based dye-makers by about 15 to 50 percent in just one month
which can lead to a reduction in market demand.
Effluent Treatment Plant Zero discharge means Recycling water from the
effluent treatment and using it back into processing without a single drop
purged out to the environment. Adequate infrastructure and adequate
utilities like power and water must be available for wet processing of the
fabric.
India should make uniformity in tax and GST so that cost of production can
be reduced for Manmade Fibre (MMF) and we can fulfil the global supply for
MMF because its demand is much higher than cotton which will eventually
increase the revenue and sales of Indian textile industry.
Reduce imports: India imports are increasing more than exports. Generally,
75% of the apparel industry's production is done outside the country, which
increases the cost of apparel because people need to pay heavy taxes.
India can promote and produce our brands at a cheaper rate with better
quality, it can increase our GDP and motivate our local vendors, which will
directly increase the sale of the apparel industry. (Atmanirbhar)
Participation in the fashion industry via stage fashion shows. Showing Indian
native culture dresses all around the world. Establishing business of dress
and robes promoting Indian textile via showrooms like India handloom
UTILITY
Reduce the rate of GST to boost the demand for textile articles and
apparently help the industry to recover
Domestic Textile Exporters should keenly look into US market as it has put
restrictions on some textile imports form Xinjiang in China
Proposed Textile India Fair should be implemented because it will boost the
textile industry along with the Indian economy
One of the major hubs for textile industry was Tirupur in tamandu which has
multiple number of whole sale exporters and production units. But as per the
latest news due to the pandemic impact it has faced a major crisis.
The schemes in vision Tamil Nadu SIMA 2023 states that textile industry is
going to get major beneficial aspects and boom.
Textile industry gives job opportunity to 50 lakhs people in India so they will
be majorly benefited by these schemes. As per the budget plans they plan to
set a target of 11% GSDP and invest 15 lakhs crore for infrastructure and
development activities.