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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)

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