Page 32 - CII Artha Magazine 2022

Sector in Focus

contribute to the growth of challenges which are faced by companies strive to meet 7. Export subsidy in China - Expectations
the economy, the demand for the Indian textile sector in ‘quality with zero Textile exporters in China, Lessons from
personal care and childcare diversifying into the technical tolerance limit’, a key including that of technical from the
products show a discernable textiles space: parameter for any textiles, get 17 per cent
escalation. Disposable technical textile product. VAT refund on export,
products are convenient to 1. Small Size and scale of which is said to provide an Government
use and enhance the overall operation - One of the 4. High Logistics Cost- incentive to the extent of Bangladesh
personal hygiene for both biggest challenges faced by Logistics inefficiency is a 9 per cent. This makes for the
mothers and children. Even the Indian textile industries major hurdle which comes their products more
The industry which had never home care products like including technical textile is in the way of exports. The competitive in the Technical
manufactured PPE kits in the dusters and cleaning wipes lack of scale. It is estimated transport time within India international market as
past, turned Covid-19 crisis have witnessed a huge that, on average, the size of as well as the turnaround compared to exports from for India markets like the EU, UK, and industry. Therefore, the Indian
into an opportunity and demand due to a rise in the Chinese textile time at ports is a major India. Textile sector the US. industry must accelerate
started manufacturing them. income, which in turn industry is five times larger challenge for Indian progress on sustainability
This made India the second increases the use of than that of the Indian exporters as compared to 8. Depreciation of rupee - The Interest Subvention Another advantage for which may soon become a
largest producer of PPE kits non-woven fabrics. industry. Due to this, Indian the other countries like Even though the recent Scheme should be allowed for Bangladesh is the presence of non-negotiable requirement
in the world. Keeping the manufacturers face China, Bangladesh and depreciation of the Indian technical textile sector. The large-scale entities in from global buyers.
Atmanirbhar Bharat vision in Besides, as environment difficulties in achieving the Vietnam. The cost of rupee has helped problem of inverted duty manufacturing which leads to
mind, the rise in domestic concerns grow and the norms desired scale to optimize logistics become a major exporters, the gains have structure should be higher cost competitiveness. These factors have helped
production of personal for power and processing costs. disadvantage for Indian been offset by a sharp addressed and the GST rate he Textile industry is the growth story, especially in According to industry Bangladesh carve out a clear
protective clothing for units are strengthened, it is manufacturers which is increase in the price of on inputs like polyester staple T backbone of India’s ready-made garments (RMG) reports, 80 per cent of identity as a “favorable source
front-line workers expected that industrial 2. High cost of raw materials caused by poor imported primary raw fiber & viscos staple fiber economy, and a key where it is now the second Bangladesh’s exports value is for apparel exports” across
medical products by Aligned with Hon’ble PM paramilitary, military, medical filtration products, which is a - There are various infrastructure like bad material like specialty should also be reduced to 12 contributor to both largest global exporter, has contributed by large the global market. This
consumers. These factors, Modi’s vision of ‘Atmanirbhar and para medicals among form of technical textiles, speciality fibres which are roads, time spent at fibers and polyester. This per cent. This would go a long employment and exports. multiple lessons for the Indian enterprises while for India, 80 contrasts with India where,
along with the higher returns Bharat’, technical textiles play others, would promote would play a major role in used as inputs in the check-posts and ports, has made export of raw way to improve the Textile products hold a key textile and apparel industry. per cent of the exports value despite having a much diverse
n India, the textile industry and is projected to reach in this segment as compared an important role in almost import substitution with a safeguarding the environment. production of certain customs clearances, loading materials more viable for competitiveness of Indian position in the global value is contributed by MSMEs. presence across the textile
plays a pivotal role in overall US$285.88 billion by 2028. to conventional textiles, are every sphere of social and high degree of localization. With growing environmental high-end and advanced and unloading as well as manufacturers as MSMEs. chain, with India being the Leveraging preferential duty India is gradually taking right value chain, there is no clear
economic development. Being attracting entrepreneurs, economic activities of the awareness, the need for more technical textile products. requirements for compared to local supply. world’s fifth-largest exporter access to key markets, such as steps in this direction and the identity of India’s value
recently launched MITRA
proposition in the global
the second largest employer thereby making technical country. In fact, during the COVID-19 filtration, oil absorbent, and Many such speciality fibres trans-shipment. The PLI Scheme has been a for apparel, home, and the EU and UK, has been a scheme should help India market. Hence, the Indian
after agriculture, the sector is Technical textiles a lucrative sector for crisis, the sector ramped up landfill backing products has are not manufactured 9. Technological know-how - boon for the textile industry. technical textiles. However, significant pillar of build the relevant scale government and industry
one of the biggest growth investment. The technical textile market its manufacturing capacity to also increased. indigenously in sufficient 5. Rigid Labour Laws - The Even as Indian Woven fabrics, the raw looking at the past, it is Bangladesh’s success story. advantage with globally must develop India’s USP and
drivers of the Indian economy. Textiles : is segmented on the basis of produce millions of masks. quantities. These products overtime provided to manufacturers are material used for evident that India’s recent Consider this - for a country competitive facilities. ensure aggressive awareness
Contributing 7 per cent to The sector has also helped in material, process and This was a modest The renewable energy sector are being imported from workers is restricted to confident of manufacturing manufacturing synthetic performance in global trade like the UK, where India does creation across the globe.
per cent to India’s GDP, and A lucrative the growth and innovation of application. Based on material, contribution to serve the also uses smart products and China, European countries, 100 hours of work in the conventional textile apparels, have been covered has not been commensurate not have preferential duty Bangladesh has also taken a COVID-19 has triggered the
industrial output (by value), 2
with its abilities. Exports
access, but Bangladesh does,
and the USA. The import
technical textiles in
three months period. This
government and the country
traditional textile products as
the market is divided into
products starting from
17 per cent to India’s export it contributes to value natural fiber, synthetic at large. The sector overall composites which find its way duties levied on such cap should be removed fiber to fashion garments, under the PLI scheme. declined by 3 per cent during India’s apparel exports shrank lead in capitalizing on the redistribution of global trade
shares and a recalibration of
global theme of increasing
Similarly, non-woven spunlace
earnings, it is a source of sector addition across the entire polymer, mineral, regenerated had also upscaled its technical into light weight components. products increase the cost and the system of paying some of the technical fabrics should also be covered 2015–2019 and by 18.7 per at 6.5 per cent CAGR in sustainability. According to sourcing patterns, providing a
direct employment for over textile value chain. Due to its fiber, and others. Based on textile capabilities to make These are stronger than the of production thereby hourly wages should be textile products and their under the scheme. This would cent in 2020. In the same 2015-2019 while Bangladesh’s BGMEA (Bangladesh Garment golden opportunity for Indian
45 million people and for 100 Owing to its distinct technical significant contribution, the process, the market is available an array of health conventional single material adversely impacting the implemented. Also, a cap of manufacturing know-how contribute significantly to the period (2015-2019), exports grew at 3 per cent. Manufacturers & Exporters textiles to stage a turnaround
million people in the allied performance and functional technical Textile sector in categorized into woven, products ranging from masks, products or alloys, saving price competitiveness of 10 hours per shift should is still missing in India. growth of technical textiles. competitors like Bangladesh This performance gap is even Association), Bangladesh has and regain a leadership
industries. properties, the technical India is knitted, non-woven, and wipes, gowns, disposable precious resources for the technical textiles. be extended to 12 hours. Therefore, a tie-up with and Vietnam saw their textile starker in the EU, where the 135 LEED (Leadership in position as a top exporting
and apparel exports growing
apparel exports of Bangladesh
textile sector is experiencing gradually others. And based on sheets, disposable towels and country. internationally reputed Technical textile, the sunrise at 10-11 per cent CAGR and grew at 9.6 per cent, while Energy and Environmental economy. As India strives to
One of the segments of this a consistent rise in demand in becoming application, the technical lifestyle products. 3. Lack of skilled manpower - 6. FTA with EU - Countries companies is necessary for sector, offers an enormous have surpassed India in India’s exports grew at Design) green garment do so, it is important to
industry that has received the global market-place. In one of textile market is divided into Since the process of like Bangladesh and Sri quick entry into potential for growth. Hence, a textiles exports. only 2.6 per cent. factories certified by the build on learnings
significant attention across India too, the sector has the most 12 sectors namely Agrotech, Further, one of the most manufacturing technical Lanka have preferential manufacturing of the conducive policy environment Hence, it is US Green Building from successful
the world is technical textiles. emerged as a fast-growing significant Meditech, Buildtech, rapidly growing sectors in the textiles is relatively more access to large consuming technical textile products. which would transform the Hence, as India critical that India Council (USGBC). This competitors like
Technical or Engineered segment owing to its use in pillars of Mobiltech, Clothtech, technical textile market is mechanized, there is a huge countries like the EU sector and help India emerge looks to stage a continues its includes 9 out of the Bangladesh
Textiles constitute products an array of sectors. In fact, the textile Oekotech, Geotech, Packtech, that of nonwovens which requirement for skilled which, incidentally, is also The Government of India as a leading producer of turnaround in this efforts of world's top-10 green which could be
that are used for functional there is a rising demand for industry. Hometech, Protech, Indutech comes under process workforce in the among India’s biggest have been taking multiple technical textiles, is the need new decade, it is gaining garment factories, on crucial in
purposes rather than for their technical textiles in markets and Sportech. category. As more and more manufacturing process. markets. Preferential steps for addressing the of the hour. important to embed duty-free access top of which 500 more charting out the
aesthetic characteristics and like agriculture, automotive, people look for hygiene with Skilled workforce and high access, through reduced challenges faced by the learnings from our to key factories are in the future course of
have applications across healthcare, PPE kit, that falls under the convenience, there is an labour productivity thus tariffs, gives Bangladesh and technical textiles sector and competitors who process of getting the action.
various industries. According infrastructure, oil application category of enormous requirement for Constraints become key determinants Sri Lanka a cost advantage with the right mix of policies, have tasted global LEED certification. In
to Verified Market Research, & petroleum, meditech or medical textiles, disposables products, which would facilitate cost to the extent of 9.6 per regulatory environment and success in comparison, India has
the global technical textile etc. as well as is one of the 12 sub-segments personal hygiene, feminine The technical textiles sector effectiveness in this cent over India. This resolution of challenges, the recent times. around 30 green
market size has been valued for hygiene and of technical Textiles. care and home care products. is currently at an evolving industry. The makes the Indian products sector can grow at a rapid And factories in the
entire textile
at US$190.33 billion in 2020 stage in India and considering non-availability of skilled less competitive in the EU pace and take the technical Bangladesh’s
Moreover, since more women the different dynamics of the workforce hampers the market. textiles sector to new heights. Mr. Neelesh Hundekari, Senior Partner, Head
join the work force and sector, there are various quality of products, as of Specialty Retail Practice APAC, Kearney Mr. Karan Dhall, Partner, Kearney
32 ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY 33
QUARTERLY JOURNAL OF ECONOMICS
QUARTERLY JOURNAL OF ECONOMICS
MAY 2022 MAY 2022