Atlanta: 2024/04/10: India’s apparel exports stagnate at $14.5 billion; It is behind China, European Union, Bangladesh and Vietnam. If India focuses on some reforms in the future, it can leave all of them behind. GTRI report said.
The report says that synthetics will have to be promoted. Weaving and processing will have to be strengthened. The supply of clothes will have to be simplified. Competitiveness will have to be restored.
The Georgia Tech Research Institute (GTRI) is the non-profit applied research arm of the Georgia Institute of Technology in Atlanta, Georgia, United States.
The report said steps that could help improve the competitiveness of Indian textiles include promoting production and exports of synthetic garments, strengthening weaving and processing sectors, simplifying fabric supplies/imports, reducing potential non-essential goods in FTAs. -Includes negotiating tariff barriers, liberalizing labor laws and building more factories into the fast fashion industry.
The report notes that in 2023, India’s apparel exports stood at just $14.5 billion, far behind China ($114 billion), the EU ($94.4 billion), Vietnam ($81.6 billion) and even Bangladesh ($43.8 billion). Was.
India is far behind China and the European Union and is also lagging behind smaller countries like Bangladesh and Vietnam. From 2013 to 2023, Bangladesh’s apparel exports are expected to grow by 69.6 percent. Vietnam increased by 81.6 percent. But India grew only by 4.6 percent. Globalization has significantly impacted the apparel industry by increasing competition and moving production to countries with low-cost labor.
Synthetic Fabric
Clothing purchased by developed countries was made of mixed synthetics, while its share in Indian exports was less than 40 percent. This is the main reason for India’s weak apparel exports. Today, most formal, sports and fashion apparel uses synthetic fabrics. Diversifying into synthetics will allow Indian manufacturers to run their factories throughout the year. There will be demand in autumn and winter also.
The report further said that there is a need to strengthen the weaving process. Only large units with latest technology can meet the quality requirements.
Indian exporters also need to meet the rapidly growing demands of the Fast Fashion Industry (FFI) so that they can benefit from it. This includes major players like Walmart, Zara, H&M, Gap, and online retailers like Amazon and Zalando.
Negotiating non-tariff barriers in your proposed FTAs with partners such as the UK and EU is also important for real gains. Relaxing labor laws to encourage larger units were other suggestions made in the report.
