Current Status
The textile industry has a significant position in India. Textile industry is a basic human needs. This is an industry independent, basic requirement of raw materials to finished products with high value-added at each stage of processing.
Today textile sector represents nearly 14% of the total industrial production. Indian fabric is the question with his ethnicity, land and plenty of colored textures. Textilesrepresenting approximately 30% of total exports. This suggests that this potential is, if one is willing to innovate.
The textile industry is the largest industry in terms of employment economy, generating about 12 million new jobs by 2010. It creates a huge potential for employment in sectors from agriculture to industry. Jobs will be created when cotton is grown. He does not need state support to the exclusive presence to go further. The only thingnecessary to give some directions to organize people to get enough share of the profits, as the spearhead of development.
Segments
Textile industry consists of the following segments
Clothing or ready
Woven fabrics of cotton or handlooms (Millmade / Powerloom / Handloom)
or artificial textiles
or thirst
Woven fabrics of wool or
handicrafts including carpets or
or coconut fiber
Jute
Craft withHandlooms, with offers of threads, produces an average of cloth, which is only 200 INR with delicate floral and other costs. It is not necessary for every project, to add it. The housewives of the wire to spin and weave a piece in about a week.
It 's a proven fact that the clothing production of small and irregular, can effectively through the provision of affordable casual clothing and recreational variety.
You may ask, where the economy and the profits of largecome to be if not the lowest paid in the chain with a minimum cost per day of work. And 'ironic, of course. What people should do for the higher chain order to apply this material in a design with little 'imagination and make millions. The 6 meters straight simple drape sari with a blouse with embroidery and bead work, then it is a designer ¡| s ensemble. For a normal person, can be cut diagonally, while a figure that can double the profit.Perhaps the claim of 30% for the industry for its contribution to the Indian economy, and below 60% in this way. Although it is an industry must innovate to grow. It has all the ingredients to make progress.
Current scenario
Exports of textile products intended 50000000000 2010 to $ 25 billion dollars, of which go to the USA to reach. Other markets are the United Arab Emirates, United Kingdom, Germany, France, Italy, Russia, Canada, Bangladesh and Japan. can give the names of these countries with their backgroundThousands of pieces of a thinking mind. The cut on the bias that its production is a readymade garment is selling at a price of 600 Indian rupees, so that the value to be profitable than 300%.
Currently, due to the imposition of import restrictions Multi Fibre Agreement (MFA) from January 1, 2005 under the World Trade Organization (WTO) Agreement on Textiles and Clothing, to be competitive in the market, on closer examination However, it sounds like an opportunitybetter than traditional material, if available with the Indian market.
Currently, the textile industry to undergo a substantial re-orientation towards other segments of textiles and clothing, technical textiles is commonly referred to as such. And 'moved vertically with an average growth rate twice of clothing fabrics and applications now account for almost half of total textile production. TheProcesses for the manufacture of technical textiles require expensive machinery and skilled workers.
Applying the framework of technical textiles in filtration, bedding and abrasive materials, health care and upholstery, the blood-absorbing materials and thermal insulation, tape, belts and other Specialized applications and products.
Strengthen
. India enjoys the advantage of abundant raw materials resources. This is a major manufacturercotton yarn in the world, and there are good resources of fibers such as polyester, silk, viscose, etc. ..
. A complete range of cotton fibers available, and has a rapid development of synthetic fibers.
. India has great competitiveness in the spinning sector and has a presence in almost all processes of the value chain.
. Availability of skilled labor in both management and technical support. The country has a great advantage of lower wages. Because of the lowThe labor cost of textile production is automatically up at very low prices.
. The installed capacity of spindles in India helps% 24 of the world, and is one of the largest exporters of yarns in the global market. After modern features and favorable tax policies, he makes about 25% of world trade in cotton yarn.
. The clothing industry is the largest foreign exchange earning sector, contributing 12% of the total areaExports.
. The clothing industry is highly diversified in terms of size, production facilities, the type of clothing product, quantity and quality of production, cost, requirement of fabric, etc. It includes the suppliers of clothing, both for export markets national o.
Weakness
Massive fragmentation:
A large loop-hole in l'industria Indian textile is its enormous fragmentation in the structure of which is maintained by small businesses. Despite government policy that made thisDeformation, were now gradually removed, but its effect will be seen for some time longer. Since most companies are small examples of leadership in the sector are only very few, that his example to follow for the rest of the industry.
The industry veterans present a portrait of the productivity of factories around the bottom half of the third level that can be achieved. In many cases, smaller firms to invest resources to improve technology orHigh-end process engineering. Skilled labor cheap in absolute terms, but most of that advantage is lost for small businesses.
The base bid also inconsistent obstacles to achieve integration between the links in the supply chain. This problem creates uncontrollable, unreliable and inconsistent performance.
Political leaders and diversity:
The reservation of production for very small businesses to help small businesses with the intention was imposedthroughout the country has led to considerable fragmentation distort competitiveness. But most areas have been de-reserved and large companies and entrepreneurs bring in huge amounts of money in large plants establishing or expanding their existing plants.
Second, foreign investment in textiles and clothing was kept. Now the government has gradually remove these restrictions by import duties on capital goods forEquipment and offers foreign investors set up production facilities in India. In recent years, India has a global business platform of production for other multi-national, non-textile manufactures products that it may well be a basis for the textile and clothing companies.
Despite some step reasoning adopted by the government, said other problems, such as excise taxes and other imbalances arising from diversification in 35 states and union territories.However, a breakdown of value added is to replace all other taxes and diversification that these imbalances are clearly carried out after its full implementation.
Labor laws:
In India labor laws are relatively unfavorable to trade with companies with less than ideal model for a "follow" politics of hiring and firing. Companies often have their operations in small units on all the problems created by work to avoid breakage of unionization.
In recent years, theregradually moving towards the reform of labor laws, and it is expected that this movement is to protect the environment.
Distant Location:
There are some disadvantages of high level for India because of its geographical position. For foreign companies, has a disadvantage because of global logistics, shipping is higher and much longer than some other producer countries such as Mexico, Turkey, China, inbound freight etc.was too low, the cost of shipping concerns - even if there are movements of containers at a reasonable cost.
Lack of Trade Associations:
India is seriously lacking in the franchise agreement, which leads to limited access to other major markets. This problem has led others to rate and duty of scissors sourcing volumes from India to impose.
Opportunity
It is expected that the Indian textile industry is probably much better. Since the consumption ofnational fiber is low, growth in domestic consumption in tandem with a forecast of 6-8% of GDP, and this would support the local textile market growth around 6-7% per year.
India can also take chances on the export market. The industry has the potential to reach $ 34bn in export earnings in 2010. The regulator is controlled by the police to improve infrastructure to help the parks clothing, textile specialized parks, EPZs and EOUs.
The government supportensure a rapid consumption of clothing and fibers. One phrase has spread throughout the country.
The Indian producers and suppliers to improve design capabilities, the substances belonging to different markets. Indian fashion industry and designers are marking their names on the international platform. Indian silk industry, for its sole end and brocades is known, is the addition of massive strength of the textile sector.
Industryis a unique series that modernized next 5 billion U.S. dollars for investment in the improvisation of machinery. international brands like Levis, Wal-Mart, JC Penny, Gap, Marks & Spencer and other industry giants are increasingly sourcing fabrics and garments from India. But Wal-Mart purchased goods for 200 million U.S. dollars last year and plans to increase purchases up to three billion U.S. dollars next year. The clothing giant from Europe, the CAP is also procurement from India.
Anticipation
AsFollowing various initiatives taken by the Government, it has a new investment of Rs.50, 000 crore in the textile sector in the last five years. Nine textile majors invested Rs.2, 600 crore and plans to invest another Rs.6, 400 crore. cotton production in India was more than 57% over the last five years has increased, and 3 million additional spindles and 30,000 shuttle-less looms installed.
Forecasts to 2010 for textiles, the Government together with industry and exportPromotion advice is to achieve a doubling of GDP and exports are likely to reach 85 billion U.S. dollars. The industry expects to generate 12mn new jobs in different sectors.
How to protect the textile industry
poor infrastructure is an obstacle that can be overcome by a better network and share the profits with the intention of loyalty from the bottom up and top-down paternalism.
. Like other retailers,
. With the best products with high added value,
. With the lowestEnd of the chain, and build confidence in their ability to innovate more and more.
. With knowledge of the market at any level that comes with high-end chain lifts.
. Based on the know-how for technical textiles, Including bedding, filtration and abrasive materials, furnishings and upholstery care, thermal protection and blood-absorbing materials, belts, tapes, etc. that need skilled workforce is one that does Easily found inIndian market.
. As a regular Division Research and Development Industry
. The construction of the peripheral market, with regular updates of new accessories.
. The integration of the unorganized sector in a segment that is functionally independent from any other side grip
. With the efforts of professionals
. Through the creation of a cargo-express-state mechanism: the rationalization of fiscal functions, technology updatetechnology up gradation Fund Scheme (TUFS);
. With the establishment of the park Apparel
. The netting off bottlenecks in the form of regulatory practices
. Replacing indirect taxes with a single VAT to national level
. With the liberalization of the contracts for textile and clothing units
. With the control of exports of raw materials
. Reducing the disadvantage falsely increase the value of exports of invoice
. Through the installation of an effective pricingMechanism to monitor market developments for effective action at hand before making a break
How to promote textile exports
For export promotion measures that should be used are taken
. Up gradation of the textile sector
. Political decision to achieve the export
. segment of woven and knitted readymade garments have been de-reserved
. Technology Up-gradation Fund Scheme will be pursued over the next five years
. The liberalization of FDI policyup to 100 per cent foreign capital
. Imports of capital goods at 5% rate of granting duty with appropriate export obligation to
Export Promotion Capital Goods (EPCG) Scheme in a clear and EXIM
. Advance Licensing Scheme with the rules of standard input-output
. Exemption required Passbook (DEPB) credit interest
. Reimbursement system in which exporters can refund the excise and import duties on raw materials lossesMaterial
. The construction of the International Apparel Mart Apparel Export Promotion Council, a leading global institution for garment exporters to exhibit products and built an international reputation
. Set up quality control laboratories
. Apparel Park for Export Scheme of international production, with production floor in-house load.
