CARGOCONNECT-MAY23 - Flipbook - Page 23
Incentive (PLI) are helping to improve the
industry’s output and exports. By 2025, the
textile sector in India is anticipated to attract
investments totaling US$120 billion and grow
exports to US$300 billion.
The Road Ahead
Currently, the T&A sector in India accounts
for 10% of the country’s manufacturing
production, 5% of GDP, and 13% of exports
earnings. Post-COVID, there is a boost in the
demand and the government support in form
of attractive schemes such as PLI, PM Mega
Investment Textile Parks (MITRA), export
incentives, etc. to invest in new products,
build scale of operations, and improve competitiveness, ultimately driving the way for
the US$250 billion target. Additionally, the
National Technical Textile Mission aims at
increasing the demand to approximately Rs 2
trillion by 2024. Having that said, a roadmap
to achieve the full potential of the industry
is what the industry needs to deliver these
targets in time.
One of the implementations to boost
production includes a greater emphasis on
technological upgrades and weaving capacity
expansion. Additionally, state governments
should provide clearance for effluent treatment
facilities to elevate the commercial market
in its entirety.
The Indian textile sector would thrive
to tremendous heights if both the national
and state governments provide adequate
assistance to its small and large-scale players.
In addition to educating their staff to suit
the changing needs of the contemporary
market, the Indian textile sector should
also consider decreasing the levies placed
on government-subsidised exports.
Moreover, ensuring a sufficient supply
of gas is crucial to the textile industry’s
continued operation. The creation of capital
subsidies, the provision of a single point of
contact for resolving industry issues, and the
establishment of a set price for yarn on an
annual basis would facilitate the flow of labor
and aid the nation’s impoverished farmers.
To overcome the obstacles within supply
chains, India’s textile and apparel companies
must make several modifications and apply
new management practices that will lead
to optimisation of process functions and
increase competitiveness. Adopting good
regulatory practices, increased focus of quality and compliance issues with enhanced
investments and continuous engagement
with the government will be the other key
determinants to maintain a dominant
status. Additionally, the ‘China+1’ strategy
of global brands will provide opportunities
to countries like India to increase its
export share, in turn, accelerating the
need for digitalisation across the supply
chain for efficiency.
The Indian textile and apparel
industry’s lack of access to the newest and most advanced technologies,
as well as its inability to fulfil global
export market criteria has represented
difficulties. Therefore, a renewed focus on
automation and digitalisation to improve
processes and efficiency levels is the
need of the hour. Apart from that, the
industry should lay strong focus on people
and skill development, start leveraging
Free Trade Agreements (FTAs) to tap
new markets, develop capabilities and
build capacities in synthetic textiles and
technical textiles, and adopt global best
practices for manufacturing excellence.
At the same time, the government
should bring additional support to the
existing textile clusters which will help
build capabilities and allow medium
and small-scale companies to compete
globally.
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