Introduction
The Indian garment export industry is at the threshold of dramatic and far-reaching changes. Garments are one of the most important value-added productions in the export basket of India. From the point of view of employment generation and net foreign exchange earnings, there are very few parallels for the garment export industry. However, there have been various phases of growth; the garment export industry had experienced the pangs and anxieties of transition before the phase-out of the multi-fiber agreement (MFA).
But now in the days ahead, we are going to face increased competition, erosion of margins, lack of expertise in global sourcing, pressures on lead time, and quality, which are going to affect growth and profitability. The garment export industry, as a whole, now needs a paradigm shift in attitude, concepts, concerns, and product marketing strategies.
The Indian garment export industry is viewed as a highly disparate group of small-scale units, located mainly in metropolitan cities and a few other cities, with outdated technology and production systems. The small-scale industries again depend on the disorganized power loom sector for the supply of fabrics, the raw material for garments. Further, the processing of fabrics and washing of garments, and many other significant activities are carried out in several small units with obsolete technology. Many other value-adding activities like embroidery, appliqu�, and sequin work are also done in rather nondescript and tiny units. Besides, there are infrastructural problems. The task ahead, therefore, is to transform such an industry into a world-class competitor so as to compete in this quota-free era of garment trade. This, in turn, will lead to the building up of better market share and a positive image.
Historical Perspective
The latter half of the 19th century saw the emergence of the ready-made garments industry in the world. The department stores set up in the US and Western Europe during the years 1840-80 increased consumers' accessibility to ready-made garments, which helped the initial growth of the ready-made garment production and consumption. After World War I, the manufacturing facilities set up for army uniforms were converted to ready-made garment manufacturing units. This resulted in the growth of the ready-to-wear garment industry.
The year 1920 is considered as the year in which the modern ready-made garment industry began its rapid climb to prominence. The factory-made clothing gained worldwide consumer acceptance, and retailers recognized its business potential. The years following World War II saw further growth of mass production and marketing of garments. Imports to the developed markets also began to grow.
The authors are associated with SVITS
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