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Indian garment industry should aim for a double digit share of global fabric exports: M Venkaiah Naidu | India News


NEW DELHI: Vice President M Venkaiah Naidu said Thursday that the country’s garment industry should aim to capture a double-digit share of world fabric exports from the current level of 5-6 percent.
The vice president also called for improving the skills of textile and garment workers and adopting the latest technologies to gain export competitiveness and capture the global market.
“We should aspire to soon reach a double-digit share of fabric exports of the current 5-6 percent,” Naidu said when launching a virtual platform of the apparel export promotion council (AEPC).
The vice president said that the sector should reflect on the reasons why India, despite being the leading producer and exporter of cotton, jute, silk and synthetic fiber yarns, lacks the competitive advantage in fabrics and clothing. compared to Bangladesh and China.
“They are the largest buyers of Indian yarn. They add value to it and sell the fabrics and clothing at a lower cost than in India. This is largely due to the disorganized and dispersed nature of the weaving sector in India. We need to have more Tirupurs, “he said.
Noting that India’s share of world textile exports was only 6 percent, the vice president said that small businesses need help and should be supported to scale up and improve quality to match global competitors. He praised Niti Aayog’s plans to work with the textiles ministry to establish textile mega-enterprises to boost exports.
“One of the projects proposed by Niti Aayog this year is to work with the Ministry of Textiles to establish textile mega firms to boost our exports in both the textile and apparel sectors. This is a welcome initiative. I call on the private sector to to partner with the government and innovate in the textile sector to improve exports, “he said.
Naidu also said that although we have a strong base of raw materials and labor, we lag behind in global fabric exports due to the small size of average companies and the use of outdated technology.
“Unless the average size of the apparel company grows, adopts the latest technologies and has a skilled workforce, we will not be able to manufacture quality items and export at competitive prices. Only then can we take advantage of the full employment and economic potential of the industry, “he added. .
Naidu said that India’s competitive advantage and core strength should come from skilled labor and not just cheap labor.
The vice president asked textile entrepreneurs to diversify their manufacturing portfolio to adapt to changing global demands and take advantage of newer markets. He also underscored the importance of branding in adding value to apparel products and recommended entrepreneurs to work on brand building.
Through such efforts, together with the cooperation of the states, the support of the Ministry of Textiles and AEPC’s initiatives in promoting exports, India should aim to soon achieve a double-digit share of textile exports from the 6th. percent current, he added.
Naidu appreciated the government’s recently announced production-linked incentive (PLI) scheme for man-made fibers (MMF) and technical textiles.
He also praised the efforts of AEPC and the Ministry of Textiles to promote the manufacture and export of medical textiles (PPE equipment, face shields, masks and gloves) during the pandemic.
As a result of these concerted efforts, India today ranks second in the world in manufacturing personal protective equipment, the vice president said.
Referring to the important role that the textile sectors play in the economy, Naidu noted that it was the second largest employer and provides direct employment to some 45 million people.
He said the industry can play an important role in unlocking the potential of our demographic dividend. It is also a very important foreign exchange generating industry for India, contributing around 12 percent of our export earnings.
He congratulated AEPC and its 8,600 member exporters for their entrepreneurial spirit in creating their own virtual platform for export promotion.
“I am confident that all these efforts, together with the support of the ministry, will boost Indian apparel exports. We should soon aim to achieve a double digit share of fabric exports with the right stimulus and branding,” Naidu said.
The virtual exhibition platform will showcase Indian apparel throughout the year and host B2B meetings. Considering the travel restrictions due to the Covid-19 pandemic, the platform is considered a better alternative in terms of economy and convenience.
Textiles Minister Smriti Irani said that the Indian apparel industry created world history by establishing a billion dollar N95 mask and personal protective equipment (PPE) industry amid the pandemic in just two months.
“Reflecting the same company, AEPC has now created a virtual platform. It will lead to opportunities for more than 300 major exporters in the country. But knowing that AEPC is a family of 8,600 members, I am hopeful that the platform will give it space especially those who innovate, those who belong to the SME segment, those who are emerging companies such as young innovators need a helping hand, “said Irani.
AEPC President A Sakthivel asked the Vice President to use his good offices to accelerate free trade agreements and comprehensive economic partnership agreements with the US, the EU, the UK, Canada and Australia.
He also urged international buyers to request their respective governments to speed up trade deals with India.
“These agreements can double India’s clothing exports in three years,” Sakthivel said.

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