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The Textile trade promotion bodies & their role

20 October 2022, Mumbai:

Textiles besides mainstream business, fabrics are pertinent to the history and culture of this vibrant, functional world's largest democracy carrying a national pride ever since Mahatma/Mohandas Gandhi introduced indigenously woven cloth namely 'Khadi' as a product and an emotional mascot of the swadeshi movement to defy the colonial regime.
United We Stand Divided We Fall
For every single product/good involving merchandise export, there is a standalone export council, and (T&C) textile/apparel space is no different. Besides again in the domestic trade, there is a slew of bodies zonally, regionally, segment-wise, category-wise, and so forth.
It is very evident that with the help of these councils/associations/trade bodies only trade will stay competitively nimble & agile providing an apt fillip to trade and also enabling businesses to tap into the opportunities that it promises to offer equitably for everyone, in the seasons/years to come.
Preamble
As per government sources," Textiles Coordination Division functions as a facilitator for promotion of textiles and apparel exports in coordination with Ministry of Textiles (MoT) playing a critical role in promoting/boosting trade. The constitutionality of this is that it functions as a non-profit making company under different sections".
Similarly, several more Export councils manage India's respective exports and control the foreign textile trade in their domains. They abide by the guidelines of the Government and strive to fulfill the actual trading and export-import works as they are supposed to perform.
Find below some of the active valuable trade promotion bodies:
AEPC
"Founded in 1978, AEPC is the official organization of Indian apparel exporters and offers crucial support to domestic and foreign buyers and importers who chose India as their preferred source of clothing. Here are some examples of the accomplishments for which the Apparel Export Promotion Council (AEPC) has been responsible. In barely 30 years, it has grown from one office in 1978 to over 12. The AEPC is now a vital organization for the promotion and facilitation of garment manufacture and exports, moving beyond its original role as a quota-monitoring institution. AEPC is a one-stop shop for information advice, technical help, workforce development, and market intelligence for Indian exporters. Members gain access to the most recent trade statistics, possible markets, information on worldwide trade shows, and support for attending these shows. It also significantly impacts finding new markets and organizing trade missions to diverse nations.
TEXPROCIL
India's cotton textiles have an international presence because of the company TEXPROCIL, which promotes exports to all corners of the globe. Around 3,000 enterprises from India's key textile clusters are members of Texprocil. Its members include reputable producers and exporters of cotton textile goods like cotton, yarns, fabrics, and home textiles, with a dizzying variety of goods available at every stage of the value chain. The Council encourages communication between competent providers and foreign customers so they may source their particular needs. It details India's export environment, competitive advantages, and most recent market position.
SRTEPC
Regular updates on global product trends, trade-related concerns, technological advancements, and the most recent industry developments and current and developing markets are provided by Texprocil. Additionally, it organizes regular market research, participates in international trade shows, hosts its Buyer Seller Meets, and supports trade delegations traveling to India and other nations. One of India's first Export Promotion Councils was the Synthetic & Rayon Textiles Export Promotion Council (SRTEPC), founded in 1954.
WWEPC
The Woolen Export Promotion Council introduces international businesspeople to local exporters and producers and gives them knowledge helpful in conducting business, inviting top exporters to visit India so they may learn firsthand about the potential of the Indian Woollen Industry. Helping overseas purchasers plan their trips to India, make travel arrangements, etc. They collaborate with the planners of significant international trade shows and exhibitions to promote the range and caliber of Indian wool products overseas. Conducting market research on global markets and funding study-cum-sales delegations overseas.
Transformative role
Over the years, the Councils have played a transformative role by fostering an export culture and encouraging the export of Indian textiles and artificial fibers. These product exports, insignificant in the 1960s, increased significantly to reach US$6.16 billion in 2013–14. India currently exports to close to 140 nations. 7% of all textile exports from India come from the MMF industry, which is sustainably rising.
To place it on record India happens to be the sixth-largest exporter of MMF fabrics globally & Man-made textiles export was to the tune of US$ 6.3 Bn securing 14% market share reflecting an upward growth trajectory of 51% & 18% during the period 2021-22 Vs. FY 2020-21 and FY 2019-20, respectively.
According to government sources the hard data on where textile trade is stacked currently, "India has recorded its highest-ever textiles and apparel exports at $44.4 billion, including Handicrafts, in the financial year 2022".
Challenge the status quo
According to trade sources," India which enjoyed a respectable global place till 2015 proudly holding the second position, lost its national pride & trade market-share, precipitously fell down to a multi-year low fifth spot in the pack of order by the year 2019 accounting for an abject 4.5% of market share".
With a lack of industry's firm will, an increasing conflict of interests, and far too many associations/trade bodies within every single segment in this fragmented long Indian textile supply chain sometimes to the trade's dismay as they start to compete with each other thus letting industry underperform to its given potential.
So according to trade experts, there is an out & out pressing need for trade unleashing in almost all segments/categories of Textile/Apparel (T&A) trade.
The article makes a case that It is today's business imperative underscoring an immediate need to review the existing situations given that the Indian industry today is experiencing fundamental tailwinds of sorts in the form of China plus one global strategy albeit the Indian textile/apparel (T&C) players are now bracing up with this rising competition.

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Indian Textile Industry: Spotlight on Surat

18 October 2022, Mumbai:

The textile industry is well-known in Surat, dubbed as the synthetic capital of India a city based in western India. 40% of the nation's entire production of man-made fabrics is produced in the town. Every day, up to 30 million meters of raw material are made by near to 700,000 weaving machines. These weaving machines, which number close to 650 000, are powered or shuttled looms. Because they are less expensive, take up less space, and offer a range of weaving possibilities, power looms are utilized extensively.
Based on its use, a wide range of raw fabric is created and supplied to the processing units for additional processing. The trade of various textile products is centered on a textile market area on the ring road. From numerous power loom units to the market and other processing facilities in the city, there are a lot of journeys for moving commodities.
The textile capital of Gujarat
The internal or intra-city flow of textile commodities is quite complicated since there are 25000 weaving units dispersed around the urban region, 320 processing facilities, and 140 wholesale trading market complexes. In order to predict the total flow of freight vehicles at the network level, a model is built to anticipate the number of freight trips from different power loom unit clusters. This study examines the features of the power loom industry's freight trip generation. The textile capital of Gujarat is Surat, a developing metropolis in the state. The moniker also fits the city just well.
Surat Textile Hub
One of Surat's oldest and most prevalent industries is the textile. Surat is a uniquely placed cluster when it comes to the making of synthetic or man-made fibre (MMF) textiles. The textile sector heavily influences the city's population. The manufacturing of yarn, weaving, processing, and embroidery are the core operations of the Surat textile industry. The market for synthetic items in Surat is widely recognized. Its primary business is the manufacturing and trade of synthetic textiles.
Surat produces 25 million meters of processed fabric and about 30 million meters of raw material daily. Numerous textile markets in the city have been there forever. Zampa Bazaar, Bombay Market, JJ Textile Market, and Jash Market.
Textile units in Surat are struggling to revive from the current crisis of sluggish demand despite the onset of the festive season. Weaving and processing units in Surat are struggling with raw material shortages and rising prices. Prices of coal and lignite in the city have increased by over 100 percent.
Global initiative
Recently for the first time, the Southern Gujarat Chamber of Commerce and Industry (SGCCI) has organised a four-day-long ‘Global Textile Trade Fair’ in Atlanta, New Jersey, and Los Angeles in the United States of America (USA) starting on June 9.
History and its future
Historically Surat's trade had its trials and tribulations and has suffered its share of quite a few setbacks in the form of devaluation, and GST as well in the past. Besides perennial issues hunting the textile hub are the ever-rising cost pressures arising out of power and labour, threatening the very competitiveness of this textile hub.
The Surat neighborhoods with the highest manufacturing concentrations are Katat Gam, Magdalla, and Udhana.

Over time, individuals from several locations, like Rajasthan and Kolkata, settled in Surat to conduct their textile businesses. Surat gave rise to the well-known Garden and Vimal textile brands. A few other companies, including Surat's Parag and Prafful, did experience brief fame but failed to impact the market significantly. India and other Asian nations make up the bulk of Surat's textile market.
Textile Market (STM) here is also predominately a cluster & a cohort of active wholesalers of apparel/garments such as saree, and lehenga wholesalers known globally catering to the Indian diaspora.
Surat provides over 90% of the polyester used in India and away from it Surat's products find buyers in other Asian countries albeit the export performance is lukewarm and there isn't much international demand for its products. The Middle East is Surat's leading export destination for textiles.
Experts claim that more significant quality innovation is needed to satisfy the expectations of the global market.

Pulse Check

As we approach Diwali, according to the Confederation of All India Traders (CAIT) & Federation of Surat Textile Traders Association (FOSTTA) Diwali orders at Surat's textile mills are muted as retail demand is subdued & there is lower offtake from Surat's mills currently.

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