Diversify Indian textiles with more blended apparel

There is an urgent need for diversifying the product basket of the Indian textiles by producing more blended apparel to meet the increasing needs of the global fashion industry, said trade advisor to textiles ministry, Aditi Rout.

Each company in the supply chain should focus on improving manufacturing efficiency to compete in the international market.



The exports of India's textile and clothing industry is majorly to countries where there is no free trade or any preferential trade agreement, said Rout at a meeting organised by the Indian Texpreneurs’ Federation (ITF) in Coimbatore.

The exports of the textile industry have remained unchanged since five years.
After calculating tariff advantage and disadvantage, it is observed that India is having tariff disadvantage in almost all top importing countries U.S., EU, Canada, China, Australia, Switzerland, GCC Countries, Israel and Chile, said ITF in its report titled 'Competition Analysis and Way Forward for FTAs for Indian Textile Sector' that was presented to Union government at the meeting.

The tariff disadvantage ranges from 1 to 40 per cent.

The study was undertaken to understand where Indian origin textile and clothing products face tariff disadvantage and what should be the way forward. Top 20 exporting countries of the world contribute more than 85 per cent in the world exports. Though India is amongst the top 10 countries, its contribution is lower than countries like Bangladesh and Vietnam.

"We are working with a macro vision for ensuring overall growth of entire value chain of Indian textile industry and we are very sure that being given the appropriate support from government in line with suggestions made in our report, will surely lead to mutually beneficial engagements with all global markets," said Prabhu Dhamodharan, ITF convenor, said.

"We should seek better market access under current FTA negotiations conducted by the ministry of commerce with EU, ECEP, GCC, SACU, Russia, and Canada. Efforts should be made to establish mutual recognition agreements with major export markers to combat import of non-tariff barriers, which are imposed on account of quality human protection and labelling," said the report. 

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