Shifting Focus in Global Sourcing Towards Asia: India emerging as a strong alternative

The author shares that globalization has led to a profound change in the product sourcing and manufacturing patterns pursued the world over. Global Sourcing is being increasingly preferred as shown by the high growth rates in both historic & future sourcing trends. Challenges to improve "Input-Cost" efficiencies and "loss" due to product rejections have led to the shift in sourcing focus. Industrial countries are slowly transforming as consuming economies as seen in increased exports of Developing countries.

He further added that the key criteria where India can capitalize on its inherent strengths are labor, raw materials, and the efficiency and flexibility of suppliers to meet changing trends retailer demands. India is the most preferred partner after China for global sourcing on cost, quality, high fashion, complete solution, skilled manpower, etc. India's Textile & Clothing market is growing at the rate of 11% CAGR fueled by the rapidly increasing domestic demand.

Lastly; he suggested some recommendations like integrated value chains with speedy deliveries & brand creation need to be done. There is a need to invest in infrastructure to the tune of US $1 trillion projects during the XII Plan (2012-17). Textile & Apparel Parks need to be created which will give approx. 7, 50,000 jobs. The range of products for supply can be widened out of 50 textile & clothing products we are known to supply only 14. There should be a clear diversification in the market with relevant products.

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This presentation was presented at World Textile Conference: Vision: Textiles 2020: Emerging New Opportunities Worldwide and Challenging Business Strategies held on May 06th & 07th, 2011, at Mumbai; organized by The Textile Association, India.

The presenter Mr. Amit Ruparelia is Chairman of TEXPROCIL (The Cotton Textiles Export Promotion Council)