Handbook on strengthening value chain in textile clusters

07 Jan '09

5 min read

The criterion suggested for selecting cluster value chains, the pictorial demonstrations of value chain mapping and listing of competencies required of a Cluster Development Agent are particularly helpful for the intervening agents. The treatment of the presentation with extensive quoting from field and prior literature and the subsequent case illustrations from the clusters at Solapur, Tirupur, Madurai, Kannur, Pochampally and Karur with which one or the other author is intensely involved has improved the readability, authenticity and usefulness.

Comprehensive procedural detail on a host of suggestive intervention instruments features the latter part of this user-friendly handbook. Again, the relevance was substantiated by lucid field evidence. Inward and outward FDI, international networking, individual and group credit, institutionalizing training and consortia approach are among the prominent instruments suggested. Nuances of a couple of interventions merit mention here. Sourcing critical inputs from foreign markets through advance license or under EPCG Scheme or by joint purchase initiative on a consortia mode may help maintain cost advantages.

Developing business plans is critical in evolving Special Purpose Vehicles for implementing large physical infrastructure and technology upgrading projects because particularly the latter may assume the role of Common Facility Centers on a public-private partnership mode. The authors have provided a detailed working on how to develop a business plan. Putting together the practices and the relevant conceptual bases is a promising exercise and quite rare in a country like India. In that sense, the current volume is a welcome change. Continued involvement in such work surely would help improve on the finesse as well.

The first part of the first chapter of the book delves on competitiveness in textile clusters and Indian economic growth on a conceptual basis. The chapter examines the National Value Chain within the textile industry and then goes on to assess the performance and competitiveness of existing sectors/industries, which is then followed by an introduction to sector and country competitiveness. The second chapter looks for underpinnings and definitions in economic growth approaches, sub-sectors, clusters and value chains.

The second part shows the approach to be taken and starts off with an introduction to the Approach and the Catalyzing Facilitator of the CDA. Then the authors try to examine the competitiveness/sustainability analysis and selection of value chains in related clusters followed by a cluster value chain study and then tries to identify the constraints and gaps. The authors have also provided a validated vision and action plan to implement the same along with a monitoring and evaluation methodology.

The third part of the handbook reveals the success stories of clusters with critical interventions in industrial clusters like Solapur, Tirupur, Madurai and artisanal clusters like Kannur, Pochampally and Karur. The last part deals with the instruments and tools for intervention at the level of clusters and national value chain. All in the entire book can be considered as a reference manual for existing and to be set up clusters within the textile industry.

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