Indian textile industry must focus on becoming 1st choice of global clients

The States should not only focus on attracting new investment, but also equally focus to support the existing businesses. Their growth will also lead to fresh investment in the States

Duty-free cotton import has been extended for one more month, cotton prices are also coming down, and the dollar is at an all-time high against Rupees so things are in India's textile industry's favour and textile exporters should be happy. But it is so?

Out textile industry was happy as recently it achieved its highest ever export and also moving ahead to create new history as our government has set massive export target. But there is a shrink in overseas demand and uncleared stock in global stores is a challenge so, the coming months may not have much export orders for the Indian textile industry. It means challenges are again there for exporters.

Exporters' challenges are equally a problem, for any economy, especially like India which has a reasonable size of export. Increasing the Current Account deficit (CAD) is one of the biggest challenges. The official data says that India's CAD was $13.4 billion in January-March 2022 from $22.2 billion in October-December 2021, for FY22 CAD was at a three-year high.

So will the things will keep moving in a similar way and we will see sometime good demand, sometime down order booking. And it seems right also as what one can do if there is no strong demand. But demand for textile-based products has been always there as it is a basic need for a human being.

The issue is that after Covid, good order flow to India was due to the change in the global scenario, especially after space left by China. Indian textile exporters were the first choice for global companies? Or they did not have any choice so they shifted their orders toward India? All stakeholders of our industry need to observe that are we were the first priority of global giants due to our best efforts at all levels or just things go against to our competitors and we get the benefit of the scenario.

To become the first choice of overseas companies, we have to improve our overall infrastructure, productivity, product diversification, innovation at every level, and quality and have to become more sustainable.

The majority of big as well as small Indian companies have increased their capacities, some of them have enhanced their overall system but a major chunk of industry is still lacking. To achieve continued growth in export, it is a must that overall industry should have all kinds of improvements so even if there is a negative impact on the global demand, Indian companies should have a minimum impact. And kaizen-a Japanese word-means continuous improvement can make it possible.

The improvement or progress Indian companies have shown in sustainability is worth appreciating and a similar approach is required by the entire industry at various levels. It will be a big push not only for environmental concerns, but will also help to attract the good business globally.

Union Government seems to be doing its best with signing of FTAs, and some States are also doing their best but still, there are some areas where State government can improve their systems and provide relief to export-oriented industry, labour-based textile industry. Recently senior minister also said that the State government have to focus on providing relief on the electricity price front but, it is ironic that some States, having a reasonable size of the industry, are not able to give enough power supply. And this condition is there for many years. In summer and crop sowing season it becomes a major problem, basic infrastructure is still an issue.

There are many more example, where industries are struggling to get basic infrastructure and that is not possible without the help of local government as well as administration.

The States should not only focus on attracting new investment, but also equally focus to support the existing businesses. Their growth will also lead to fresh investment in the States.

So small things can do big reforms, every stakeholder of the industry must be on their toes and the ultimate target should be to become the first choice of clients, irrespective of market conditions, which are frequently changing. And there can't be the best time for these collective efforts as higher export, ease of doing business, ensuring growth, maximum job creation, and making India $5 trillion economy is the top priority of the Government.

(The author owns a garment manufacturing setup in a rural area, which employs mostly women workers)