Indian Textile Exports target of $65 billion and to counter Vietnam & Bangladesh is how realistic!
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11 January 2022, Mumbai:
Textiles have a very long history in India. Known as the land of beautiful fabrics over the ages, India is home to a textiles industry that has been a very important part of the country.
However, the country's recent performance in global trade has not been commensurate with its abilities Exports declined by 3 percent during 2015-2019 and by 18.7 percent in 2020. And yet during the same period, other low-cost countries such as Bangladesh and Vietnam have gained share.
A variety of factors have contributed to India's recent trade performance, India has a variety of factors posing cost disadvantages (for example, power costs 30 to 40 percent more in India than it does in Bangladesh).
Lack of free or preferential trade agreements with key importers, such as EU, UK, and Canada for apparel and Bangladesh for fabrics, put pricing pressure on exporters.
The high cost of capital and high reliance on imports for almost all textiles machinery makes it difficult to earn the right return o invested capital. Longer lead times than for Chinese manufacturers make India uncompetitive, especially in the fashion segment. The trend of nearshoring in western economies has not helped either.
(The news article has not been edited by DFU Publications staff)
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