Feedback
A pioneer B2B media and publication platform connecting with Fashion Brands & Retail in India

Raw material focus, credit infusion will help India reclaim lost textile glory

Raw material focus credit infusion will help India reclaim lost textile gloryThe advent of technology has rendered millions of artisans in the sector jobless with most of their their skills becoming outdated. COVID-19 has further compounded this problem with the crisis likely to render around one lakh workers in the industry jobless, estimates CMAI. Once famed across the globe as ‘artisans’, these textile workers have now become one of the biggest concerns for many Indian textile manufacturing enterprises.

Globalization leads to erosion of smaller players

Globalization has necessitated textile and clothing manufacturing processes to become cost-competitive. As the annual 2018-19 report of the Indian Ministry of Textiles, notes, this has resulted in a setback for the largely fragmented textile and clothing value chain in India which produces 70 per cent of its output from small and medium scale industries. Handloom and handicraft artisans are suffering due to their loss to market access and branding. This is further preventing them from getting reasonable returns on their efforts.

Schemes launched by the government

As a solution to these problems, the Textiles Ministry launched schemes like Technology UpgradationRaw material focus credit infusion will help India reclaim lost textile Fund Scheme (TUFS) or the Powertex scheme for powerlooms or the Scheme for Integrated Textile Park (SITP) in order to increase productivity, efficiency, exportability, scalability and marketability of the textile products in India. However, the government fails to adopt an outward looking approach to address the external factors affecting the sector.

Equal focus on all raw materials

One of the critical factors that the government overlooks is India’s overdependence on cotton. While global demand of clothing is inclined towards man-made fiber over cotton, India’s production still remains cotton-dominated. This is mainly due to the high production costs of these raw materials in India. Until recently, India used antidumping duty to protect the very few such domestic manufacturing oligopolies. Therefore, there is a need to infuse efficiency into domestic manufacturing of all raw materials.

Credit facilities for handlooms and powerlooms

The second factor that the government needs to consider is of increasing costs, which have a direct impact on the viability of the textile enterprises. The government needs to provide credit support for both handlooms and powerlooms to start business and working capital support to run their businesses. Also, banks need to assist MSME clusters to leverage their manpower skills and compete with the large corporates operating at economies of scale.

As textile is a power intensive industry, mills incur a significant proportion of their costs as electricity bills. For this, the government needs to reform the power sector by rationalizing tariffs and passing on the efficiency gains to end-consumers.

E-commerce and fintech solutions can be used to link handlooms and handicrafts with the market. This has to go hand to hand with effective advertising and branding support from the government and other agencies including National Institute of Fashion Technology and various textile promotion councils.

Lastly, the government needs to reemphasize the value of the worker in the modern textile industry. To achieve this, it needs to focus on effective skill development and capacity building by revamping the existing research-cum-training agencies. In addition, it needs to focus on the job skill training to adapt to the changing nature of work on the factory floor. This type of value creation will help it to provide a universal social safety net, a safe working environment and decent income levels for workers.

LATEST TOP NEWS
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10

CMAI requests government to levy additional import duty on RMG imports

CMAI requests government to levy additional import duty on RMG imports

The Clothing Manufacturers Association of India (CMAI) has written to the Minister of Textiles Smriti Zubin Irani, and the Minister of Commerce and Industry Piyush Goyal to consider levying a... Read more

India’s activewear market to reach Rs 997.8 billion by 2024

India’s activewear market to reach Rs 997.8 billion by 2024

A report titled, ‘Activewear Market in India 2019’ by ResearchAndMarkets.com, says the activewear market is estimated to reach Rs 997.8 billion by 2024, expanding at a CAGR of ~13.59 per... Read more

DFU Live Webinar #2: Highlights challenges to lure reluctant customers back to s…

DFU Live Webinar #2: Highlights challenges to lure reluctant customers back to stores

The Webinar #2 organized by DFU Publications-DFU LIVE in association with TRRAIN on the theme: ‘Consumer Bulao, Retailer Jitao’ (Spiking Consumption, Winning the Customer Back), saw experts highlighting the challenges involved... Read more

Indian apparel players gear up for the new normal

Indian apparel players gear up for the new normal

With the pandemic impacting both apparel manufacturers and retailers in India, these industry players are preparing themselves for the new normal. Speaking at a recent webinar by the Retail Association... Read more

CMAI welcomes economic package announced by the finance minister

CMAI welcomes economic package announced by the finance minister

CMAI has welcomed the measures announced by Nirmala Sitharaman, Finance Minister, especially those connected with the Government’s support to the MSME Sector – on which she focused on today. According to... Read more

Indian brands brace up with new strategies for post COVID-19 retail

Indian brands brace up with new strategies for post COVID-19 retail

With COVID-19, consumers are more likely to click their way to shopping from within the safe confines of their homes, hence, retailers across India are planning to double their investments... Read more

DFU Publications, TRRAIN webinar on spiking consumption post lockdown on May 15

DFU Publications, TRRAIN webinar on spiking consumption post lockdown on May 15

Uncertainty looms large across the fashion and retail world with no clarity about what could be the state and type of consumption pattern of fashion and apparel goods, largely considered... Read more

Lingerie business shrinks but demand to rise post lockdown

Lingerie business shrinks but demand to rise post lockdown

COVID-19 crisis is likely to result in a $9 trillion loss for economies worldwide. Many developed economies like Germany, France, Italy, Spain, Great Britain and US and several nations of... Read more

Delhi malls gear up to boost consumer confidence post lockdown

Delhi malls gear up to boost consumer confidence post lockdown

The global lockdown to check the Covid-19 has malls across India suffering the adverse effects of the pandemic. The major focus of malls in Delhi post lifting of lockdown will... Read more

Almost 54 per cent consumers to cut expenditure in malls: BCG Report

Almost 54 per cent consumers to cut expenditure in malls: BCG Report

A report by Boston Consulting Group (BCG) says, about 54 per cent consumers are expected to cut spending in malls largely to avoid crowds while boosting spends on channels like... Read more

MOST POPULAR NEWS
Go to top