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Surat poised to become India's MMF export hub, asserts trade expert Gurudas Aras

 

A recent seminar organized by The Textile Association of India (TAI), South Gujarat unit, held at the Baghban Kratos Club in Surat, highlighted the immense potential for Surat to emerge as a major export hub for man-made fiber (MMF) products in India. The seminar, titled "Opportunities in Exports in MMF Products," drew an impressive attendance of over 150 participants, including manufacturers, exporters, traders, and representatives from trade associations and academia, with delegates also present from Vapi and Mumbai.

The keynote speaker, Gurudas Aras, Strategic Advisor and Independent Director, whose presentation formed the crux of the insightful session, emphasized the significant global shift towards MMF consumption. Aras pointed out that MMF currently accounts for approximately 67% of global fiber consumption, with polyester dominating at 85%. Furthermore, the global trade in MMF products is witnessing the highest growth in categories like knitted garments, bedsheets, and woven garments.

Despite this global trend, India's share in the global textiles and apparel (T&A) trade has stagnated at around 5%. Aras attributed this to India's continued reliance on cotton-based products, while the majority of international trade now revolves around MMF-based items.

The presentation by Aras shed light on the dominance of China in the top 10 globally traded commodities within knitted and woven categories, with a staggering 40% to 60% share. Other significant players include Vietnam, Bangladesh, Cambodia, Turkey, and Germany, holding subsequent ranks across various HSN codes. India's global share in different MMF categories currently ranges from a modest 0.2% to 3%, with a few exceptions.

However, the ongoing trade tensions between the US and China present a significant opportunity for India. Aras highlighted that nearly 28% of India's current textile exports are directed towards the USA. There exists excellent potential to increase exports in specific MMF product categories where the US currently imports substantial quantities from China. A detailed list of such products was presented during the seminar.

Aras further elaborated on how the comparatively lower US tariff of 27% could significantly benefit India, provided that critical issues are addressed promptly. These key areas include:

  • Capacity building in MMF raw materials: Enhancing domestic production capabilities for essential MMF inputs.

  • Reducing MMF raw material prices: Addressing the current 15% higher cost of MMF raw materials in India to improve competitiveness.

  • Capacity building in MMF-based apparel manufacturing: Scaling up and modernizing manufacturing units focused on MMF apparel.

  • Removing hurdles of Quality Control Orders (QCO): Streamlining regulations to allow access to cheaper MMF materials for value-added exports.

Aras stressed that tapping into the export market requires a distinct approach and urged the industry in Surat to cultivate an export-oriented culture. This necessitates strategic investments in modern technology, sustainable manufacturing practices, consistent quality control, maintaining high standards of shop floor hygiene, comprehensive worker training, and a strong focus on product development.

Promising product categories for MMF-based manufacturing and exports that Surat should actively pursue include activewear and sportswear, performance fabrics, hygiene products, home textiles, and technical textiles.

The presentation by Aras also showcased successful examples of India's global achievements in T&A products, such as MMF bedsheets and blankets from Panipat, Flexible Intermediate Bulk Containers (FIBC) or jumbo bags, kids' garments, knitted garments from Tirupur, knitted baby garments, and home textiles.

 
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