Garment makers feel that India needs to focus on getting duty-free access to European Union and the US, two of our biggest export markets, as the country has been facing very stiff competition from South Asian countries. Atul Ujagar, Nike’s Country Director, feels that other countries have been actively working on free trade agreements which would help their apparel secure ‘duty-free’ into developed countries. The textile and apparel industry in India is very strong and it would emerge one of the fastest growing in case ample support is given. The government should be more aggressive on securing duty-free status to up the EU and US markets. 

Indian apparel exports are worth $17 billion which is less than the textile, yarn, and cotton exports which amount to around $20 billion. Together, textile and garment exports are at around $37 billion. The industry employs 45 million people which makes it one of the top three employers. India is not able to realise the full supply chain value, Ujagar observes. 

Compared to other South-East Asian countries, India has a competitive labour rates. In fact, one of India’s core strengths is its cost-competitive labour but it lags behind in productivity and efficiencies in manufacturing. There needs to be a dedicated focus to improve India’s productivity, he said. 

Anindya Ray, Senior Vice-President of Arvind Lifestyle feels, Chinese government provides a platform for buyers through huge exhibitions throughout the year. Indian textile industry is the second largest employer after agriculture. It is unfortunate that the government is not trying its best to help the industry. This industry will become a dying industry without government support. India exports around $17 billion, whereas Bangladesh exports around $24 billion and China’s exports are around $65 billion. China is becoming expensive and people want to move out despite the industry still growing there. India is not a position to make use of the minimum shift away China as India lacks infrastructure, he believes.