Tuesday, 21 June 2016

Future of Indian Textile Industry

Future of Indian Textile Industry
One of the oldest sector in India, textile sector also happens to be the largest in the country. However, in the decade gone by, the industry has been plagued with a plethora of issues ranging from government regulations to economic slowdown and many others. In fact, there even came a time where small players like Pakistan, Bangladesh and Sri Lanka, which any considerable strength in the sector raced ahead of India in many sectors. Nonetheless, Indian textile sector bounced back with full strength and even managed to achieve an exemplary GDP of over 6%. Moreover, it was only during the decade gone by, that the Indian textile and clothing industry was officially integrated with the World Trade Organisation.
That being said, India’s future prospects, especially with respect to the textile industry are brighter today than ever before. And we do not say so without some very good reasons. Here’re a few of them:
  • As per a report by Technopak, it is expected that and additional market opportunity of as huge as USD 500 billion is expected within the next decade. This teamed with the speculation that most developed nations will experience a substantial decline in the textile trade, thereby creating better business opportunities for their developing counterparts is a great sign for India.
  • The majority of Indian population in today’s time, accounting to as high as 64%, is the youth which is expected to grow even further in the coming years. This will eventually result in a steep demand hike in the domestic market. Moreover, the exposure to fashion is on a constant increase, which will further add fuel to the fierce demand.
  • India has been blessed with an awe-inspiring potential for growing cotton, which is yet to be fully exploited. While the domestic market looks fairly promising, even the international trade shows great promise especially with respect to high-quality yarn and customised apparels & Home Textiles.
  • The current government is in complete support of modernisation of the textile industry with a converged focus of filling the gaps that currently hamper the textile value chain. This support, combined with the allowance of 100% FDI in the textile sector under the automatic route is sure to give the much required boost to the industry, sooner rather than later.
As promising as the future of the Indian Textile Industry look today, this potential can only be realised if there are a significant number of entrepreneurs who are willing to invest in the sector. While the government is doing its best at creating positive impulses such as offering a business friendly environment there is still scope for further improvements. For instance, the industry has been awaiting the reforms in the current labour laws in order to develop better equipped skilled work force in a bid to fulfil the market needs for higher quality products.
Furthermore, with respect to exports, the government needs to offer high-end logistics and a state-of-the-art infrastructure for communication, power supply and transportation, owing to the simple fact that the better part of business in the textile sector depends on meeting strict deadlines. It needs to be understood by the regulatory authorities as well as the stakeholders, that it is not just the competitive pricing that brings in better business opportunities, but also the ability to deliver creative and customised solutions within a short period of time that matters. Only when that happens can the industry actually witness the growth that it deserves!

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