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through FTAs                      textile players can move   cutting edge product
         SECURING A 1 PER                                                                      (competing countries              towards zero carbon      innovations & branding.
         CENT MARKET SHARE                                                                     have selective market             footprint in their power
         FROM CHINA WOULD                                                                      access)                           consumption.
         ENTAIL A US$10                                                                     b.  Attract large global                                       Textiles: An
         BILLION OPPORTUNITY                                                                   garmenting champions            6) Reduce cost of
         FOR THE COUNTRY                                                                       by offering large scale           investments: To reduce our   important
         WHICH IN TURN                                                                         plug and play                     dependence on expensive   contributor to
         WOULD CREATE JOBS                                                                     infrastructure that can           imports of textiles
                                                                                               support labour                    machinery, industry should   employment
                                                                                               mobilisation                      be incentivized to develop
                                                                                               (dormitories), effluent           a local machine           The labour-intensive textile
                                                                                               treatment plants and              manufacturing base and    and apparel industry (T&A),
                                                                                               sheds. The MITRA                  parallelly allow certain   with its low skill requirement,
                                                                                               scheme should be                  high-tech machinery to    has emerged as the biggest
                                                                                               implemented to                    come into the country     employer after agriculture.
                                                                                               address this need                 with lower duties.        The industry provides direct
                                                                                            c.  Flexible labour laws           7) Embrace industry 4.0: India   employment to over 45
                                                                                               across the country                should use the opportunity   million people while an
                                                                                            d.  PLI like scheme to help          to digitize the entire value   additional 60 million people
                                                                                                                                                           are associated with allied
                                                                                               new entrants scale up             chain to ensure higher    activities, thereby making it
        Government                 Technology Upgradation     relating to skills, productivity,      in this industry.           transparency in raw       the second largest employer
                                                                                                                                 material procurement and
                                                              production costs and lead
                                   Scheme, among others.
                                                                                                                                                           after agriculture.
        Policies                   The government is also     times. Detailed suggestions   3) Make India a hub for              at the same time improve
                                                                                                                                 the use of IoT and analytics
                                                                                            fabrics: Countries like
                                                              for building a robust textile
                                   working towards forging new   sector are given as under:  Bangladesh and Vietnam              to build efficiencies across   Additionally, the textile and
                                                                                                                                                           garments industry offer
                                                                                                                                 the value chain.
        Recognizing the immense    trade agreements with                                    are quickly scaling up their                                   immense opportunities for
        potential of the industry to   importing countries and   1) Diversify product basket:   garment industries but are     8) Reduce Turnaround time:   employment of women
                                                                                            dependent largely on
        promote inclusive growth, the   making policy changes to   India needs to diversify   China for fabrics. By              There is need to reduce   workforce in apparel
        government has, over the years,   optimize key factor costs   beyond its core strength in   improving logistics and      the turnaround time by    factories thereby helping in
        taken wide-ranging measures   such as power costs to spur   cotton textiles towards   market access to such              5-10 days to help improve   women empowerment.
        to bolster the performance of   growth in the industry. But   manmade fibers (MMF)   countries, India can                attractiveness of India as a   According to Invest India, the
        the sector. Steps have been   not withstanding this, more   which comprises more    become the fabric hub of             production hub.           T&A industry has the
                                                                than 60 per cent of the
        taken to help industry take   needs to be done to help   global trade. To improve   South Asia and thereby                                         capability to generate 70 jobs
        advantage of positive      realize the full potential of this   our share in manmade   gain a large market share       9) Focus on Skill development:   for every Rs1 crore invested,
        developments such as       sector on the global platform.  fibers, the government has                                    There is need for large   as compared to 12 jobs
        dominance of home textiles                              recently rolled out the PLI   4) Help India retain its           reskilling of agrarian labour   created on an average in
        and favorable geopolitical   Suggestions                scheme. The scheme          position in cotton: India            and the female labour pool   other industries.
        undercurrents such as the                               should also, over time,     should aim to become the             for use in the textile sector.
        strategy, which would benefit  for Achieving            extend to include           lowest price producer of             Government schemes on     A recent CII report  has
        China Plus One sourcing
                                                                                                                                                                          2
                                                                                                                                 reskilling especially in
                                                                                                                                                           indicated that clear
                                                                                            cotton for which it should
        the sector.  This has resulted in                       upstream segments of the    invest in the latest seed            surplus labour states in   opportunity exists for textile
                                                                value chain.
        the launch of multiple schemes   a Globally                                         technologies and keep                central and eastern India   exports from India as textile
        such as Remissions of Duties                          2) Scale up garmenting:  It is   improving the yield/hectare       will be critical to achieve   brands and retailers are
        and Taxes on Exported      Competitive                  critical to scale up the    to increase their                    this level of labour      trying to de-risk their supply
        Products (RoDTEP),                                      garments sector as the      realizations.                        mobilisation.             chain by looking at
        production linked incentive   Textile Sector            world is moving to a much                                                                  alternative hubs. Securing
        scheme to promote                                       faster turn-around in the   5) Establish India as the most     To conclude, a conducive and   even a 1 per cent market
        manufacturing in man-made   To help industry realize its full   clothing industry and   sustainable T&A producer:      receptive policy environment   share from China would
        fiber garments and fabrics as   potential and become globally   countries need to provide   To establish its           would go a long way in      entail a US$ 10 billion
                                                                                                                               helping the Indian textiles
        well as technical textiles, setting   competitive, it is important to   end-to-end garment   sustainability credentials   sector to weave a new path   opportunity for the country
        up of Mega Textile Parks, Mega   strengthen the value chain of   solutions. The following will   and reduce the cost of   and achieve breakaway    which in turn would create
        Integrated Textile Region and   textiles and apparel as well as   be required to support   power, India should allow   growth in production and    jobs. The PLI scheme of the
        Apparel (MITRA), flexible labor   facilitate market access of the   global scale garment   renewables to be used for   exports on the back of      government for manmade
        laws, GST slab of under 5 per   sector to key export hubs.   companies in India     the textile industry. This         sustainable competitive     fibres and technical textiles
                                                                                            will require state
        cent for most segments, capital   Additionally, efforts should be     a.  Market access to large    governments to provide   advantage driven by   would also give a boost to
        investment subsidy on new   made to address constraints      consuming economies    banking facilities without         conducive policies,         employment generation.
        machines,  Amended                                         like the UK, EU and US    any usage caps so that            manufacturing excellence,

                                                                                                                               2  ‘Creating a competitive advantage for India in the global textiles and apparel industry’ (CII & AT Kearney Report, Oct 2021)

        28   ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY                                                                                                                                               ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY  29
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