EXCLUSIVE Interview with Fibre2Fashion: We will strengthen focus on energy efficiencies in the value chain
The Office of the Textile Commissioner, under the Ministry of Textiles, Government of India, formulates and implements various schemes of the government for the benefit of the country’s textile industry. It is a designated body for disseminating all important information to the industry, including but not limited to policies, export taxes, etc. It also makes available information related to wool textile industry, cotton industry, import and export, handloom, etc. Roop Rashi, Textile Commissioner of India, speaks to Fibre2Fashion about New Textiles Policy, achieving the $100 billion export target, PLI scheme, Indian size chart and compendium of statistics.
What is the main role of the Office of the Textile Commissioner?
The role of the government in supporting development and growth of the Indian textile industry is to create and sustain enabling environment for enterprises to flourish in the second-largest employment generating sector after agriculture. Towards this end, primary focus areas remain – facilitating access to raw material, supporting growth of technology as well as skill development to strengthen value chain along production with qualitative improvements, and working consistently for access to markets while ensuring level playing field.
In this context, the Office of the Textile Commissioner (TxC), as the field interface of the Ministry of Textiles, Government of India, provides support to the Ministry for all textiles and apparel items with objective of VASTRA VIKAS. We have chosen to have our motto – Vibrant Approach to Sustainable Textiles with Rejuvenation & Automation: Vivid Initiatives to Kindle Apparel Sector.
As part of Team Textiles led by Union Minister of Textiles, Minister of State for Textiles and the Secretary (Textiles), TxC office and its regional formations, support implementation of various schemes of the Ministry of Textiles, Government of India, which are related to the textiles and apparel sector. The Textile Commissioner prepares Cotton Balance sheet in consultation with the stakeholders under Rules of Business. The Textile Commissioner is the Statistics Officer for Production, Consumption, Prices of Yarn under Collection of Statistics Act, 2008. On technology support as well as powerloom development, we implement the flagship schemes of the Ministry of Textiles utilising IT enabled scheme architecture through our regional formations and Powerloom Service Centres. This office also supports livelihoods of handloom weavers by way of implementation of Hank Yarn Obligation Scheme under the Essential Commodities Act, 1955.
We endeavour to engage constantly with stakeholders across the value chain to bring synergy between policy and programme implementation by bringing stakeholders’ concerns to the policy seat while contributing to the vision of Prime Minister of India in regard to ‘Atmanirbhar Bharat’ through sustainable growth of textiles and apparel sector with zero-effect on the environment having zero-defect in quality terms.
A project is currently underway which aims to come out with a standard size chart for India. Will it be possible to implement it across the country, particularly when we have a huge unorganised market?
A joint initiative of the Ministry of Textiles and the National Institute of Fashion Technology (NIFT), the aim of the project is to introduce a new standardised size chart for India in the ready-to-wear clothing sector. The new sizing chart will have a size identification number, which will be created by mapping, categorisation and defining of the body size and type. Currently, only about 18 countries in the world have their own sizing charts. Clothes that are tailored following a size chart specially developed for the Indian body size and shape will make Indians look more beautiful and feel more confident. It would also lead to more business and lower rejections.
Why doubt implementation? Let it first come to the market. I am sure a higher value service would have higher value takers and may have due ripple effect for all, including unorganised segment which would also see value in that. We need not doubt something that brings in more system in retail segment. India is one of the biggest retail markets and it should have its own size chart. Why should we be dependent on estimating based on others’ size set? Though having our own size does not exclude others, as normally equivalence would be seen in garments where in addition to US/ EU/ UK, we would have benefit of our own sizes as benchmark. For the apparel segment, it may actually help to reduce costs by focusing inventory management to cater to assessed demand.
Further sizing remains a big catalyst to strengthen demand and conversion of demand to actual purchase, especially in online marketing by bringing ‘customer’ focus firmly in the production process.
Is there a plan to develop an exclusive database for technical textiles which details market size, domestic and global scenario of technical textiles, details of government schemes, etc?
Technical textiles, with all its twelve segments, has significant potential. The Indian government has established 8 Centre of Excellences (CoEs) in the country in respect of twelve segments of technical textiles at NITRA, ATIRA, MANTRA, SASMIRA, BTRA, WRA, DKTE and SITRA. These 8 CoEs are maintaining exclusive database related to the products allotted to them. Beside this, our Textiles Committee and a significant number of institutions have studies on technical textiles from Geotech, Agritech, Meditech, Protech, etc. We have Textile Research Institutes, IITs, NITs, BARC, etc who are working on various fibres/products and patents. We have developed HSN codes which facilitate trade. Technical textile is also one part of PLI. There is a National Mission on Technical Textiles to augment fundamental research in this potential growth area. We have a lot of opportunities in 89 products which include functional technical textiles which make 83 per cent of global exports and India’s share is less than 3 per cent. We have a lot of good projects which have come in Geosynthetics, Geotextiles, Packtech, Protech, Agrotech, and Geotech. We have done a good job in Northeast in geotextiles. The unprecedented COVID-19 crisis helped strengthen Meditech while creating supplies of PPE and masks for our frontline warriors during 2020.
We look forward to build partnerships with Korean, Taiwan, Japan, etc to grow in technical textiles segment. There is also a major growing area and potential in Sport Textiles, Smart Textiles, and Recycled Material through synthetic and rayon man-made textiles segments. Therefore, a lot more work is being done and can be done. It needs R&D support. However, one bigger issue is that some of the raw material is not made in India. Therefore, a lot of research is going on at present on how to take benefit of what is available with us and make it better.
When can we expect the long-awaited New Textiles Policy? The government has put forward the vision, but the industry needs a supportive textiles policy to achieve the same.
Inspired by the 5F vision of the Prime Minister – from Farm to Fibre, Fibre to Factory, Factory to Fashion, and Fashion to Foreign, the Ministry of Textiles under the leadership of the Union Minister of Textiles, Minister of State for Textiles and the Secretary (Textiles) has already taken pathbreaking initiatives of announcing setting up of PM MITRA Parks to integrate the strengths of the textile value chain (TVC), PLI Scheme to boost the production and export in those categories in which our presence in the world market is very minimal at present, National Technical Textiles Mission for boosting in-house production of speciality fibres/yarns which are required to manufacture high performance protective technical textiles, Technology support with focus on MSME, Skill enhancement, R&D support, Refund support on taxes in synergy with Ministry of Commerce, achieving access to international markets through FTAs, etc.
Do you think India can achieve the $100 billion export target by 2030? What is the roadmap for the same?
Yes, we have confidence in capacities of our industry. The industry has achieved a noteworthy position having presence across the TVC and in all fibre-based products including cotton, MMF, silk, jute, wool, with largest presence in cotton and jute. Looking at all components of TVC and India’s position in global trade, the country holds first position in natural spun yarn, second in overall spun yarn, third in natural fibre and MMF yarn, fourth in overall fibre and woven fabric, fifth in filament yarn, sixth in overall fabric, seventh in overall apparel, eighth in knit and woven apparel, etc.
We have significant potential to grow in MMF and technical textiles segments. The segment of the Indian technical textiles industry is at present valued at $18 billion and is growing at a CAGR of 13 per cent. Perceptible signs of growth have been observed in a few specialised fields. India has about 2,100 technical textile units and all of them have a high growth potential.
We are confident that with the various initiatives of the Government of India and partnerships of states, our textile industry would reach the target. In 2021-22, despite COVID-19 constraints during few months of the year, and international logistics constraints, the industry achieved the target of $40 billion by early part of March 2022.
The Office of Textile Commissioner earlier used to publish a ‘Compendium of Statistics’ each year which provided domestic numbers for production, inventory, etc. Why was it discontinued? Is there a plan to revive the data for the industry stakeholders?
There are attempts to strengthen the statistical vertical. We have created a Working Group to make systemic collection of data from the industry and collate with other databases available in public domain/ other departments so that reliable data can be available to the Ministry and the stakeholders alike.
What does the Office of the Textile Commissioner plan to do over the next three to five years? What is on top of the agenda?
As the field office of the Ministry, we work to deliver on the strategy and vision of the Ministry of Textiles, Government of India. In this, it is difficult to list out a few items as our focus is a holistic approach which does not look at segmentation. However, we propose to strengthen the implementation of schemes in transparent manner with support of technology. We have all the growth drivers for the textile industry with abundance of raw material; presence in entire value chain; large and growing domestic market, with rising per capita income, higher disposable incomes and brand preference; organised retail landscape and e-commerce; increased focus on technical textiles due to growth of end user industries such as automotive, healthcare, infrastructure, oil and petroleum; reasonably competitive manufacturing costs; and availability of skilled manpower. We have to constantly work on the last two segments.
We have the confidence of the international community in our overall political stability and vision of our leaders, commitment to structural reforms in economy like implementation of tax reforms, push to digitalisation from top, transparency in transactions, commitment to reduce compliance burden with responsiveness of the executive, etc.
We would focus our efforts to strengthen knowledge domain; strengthen and support full value chain cohesively; and work towards genuinely circular economy.
We look forward to working with industry on all those variables which strengthen our position as favourite Sourcing destination by the international majors who look for following in the supplier capacities:
- Ability to provide free/ FOB, the most commonly used shipping agreement in garment exports
- Price
- Tariff advantage
- Compliance/ sustainability
- Production quality
- Efficiency
- Lead time
- Reliability
- Ability to create basic products
- Financial stability
- Vertical integration/ ability to source raw materials
- Political stability
- Flexibility of order quantity
- Innovation and ability to develop products with buyer inputs
- Ability to create value added products.
While some of the above criteria are solely in domain of industry, on some we would supplement the efforts to have delivery matching expectation.
We look forward to developing cluster-based approach in our support measures, tailored to specific requirements for growth.
Machinery costs in textiles are high. So, here our approach is to also enable machinery production in India to reduce cost.
Today demand is good, which would itself reinforce productivity across the supply chain. We look forward to strengthening concerns on sustainability, maturing of proposals under MITRA and PLI very well so that India regains position in international market as a favourite sourcing destination.
As per NIC data, approximately 33 per cent of ownership is women in textile industry across the value chain and fibres. This gives us inspiration to strengthen the value chain by synergising efforts of various verticals.We will strengthen focus on energy efficiencies in the value chain, a significant factor of cost. There is potential for alternate natural fibres also, for which initiatives are underway at the Ministry.
We look forward to deepening penetration in traditional markets while expanding export basket with proactive support of our industry. Focus on ‘quality’ brings value. Approaches are being worked on to have presence in high value destinations for Indian niche goods supported by traceability and branding.
What is the progress on ATUFS? How many companies have benefitted to date?
In 2016, in order to incentivise investment in technology upgradation, the Indian government launched Amended Technology Upgradation Fund Scheme (ATUFS) with focus on MSME and employment generation segments. Till March 31, 2022, more than 14,000 UIDs have been generated having investment of more than ₹69,000 crore, incentivised by support of ₹4,900 crore with projected employment support of ₹17.35 lakh.
Recently, 61 applications were selected under the Production-Linked Incentive (PLI) scheme for textiles. What was the criteria for selection? Is there PLI-2 also in the planning stage?
The government approved Production-Linked Incentive (PLI) Scheme for textiles products, namely MMF apparel, MMF fabrics and products of technical textiles, for enhancing India’s manufacturing capabilities and enhancing exports, has an approved financial outlay of ₹10,683 crore over a five-year period.
Sixty-four applications have been approved so far by the Ministry under the PLI. The proposed total investment is ₹19,798 crore and projected turnover of ₹1,93,926 crore with a proposed employment of 2,45,362, as per the Ministry’s website.
The scheme has two parts, Part 1 where minimum investment is ₹300 crore and minimum turnover required to be achieved for incentive is ₹600 crore; and Part 2, where minimum investment is of ₹100 crore and minimum turnover required to be achieved for incentive is ₹200 crore.
Since deliberations for second proposed PLI are still underway, it would not be appropriate for me to comment on the same at this stage.
There is a significant lag in updated data about the industry being published for stakeholders, like it is done in China or Vietnam. So, is there a possibility for the same through office of TxC?
The office of TxC is already a designated body for disseminating all important information to the industry. There are studies / data collection and proposed surveys, which would continue to ensure dissemination of updated position to all transparently.
However, for the textile value chain to be strong, all in the chain need to remember and work on principle of UBUNTU, i.e., I am because WE are.
