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Interview with Rahul Mehta

Rahul Mehta
Rahul Mehta
Chief Mentor
The Clothing Manufacturers Association of India
The Clothing Manufacturers Association of India

For long-term growth, focus should be on creating robust, self-reliant ecosystem
Rahul Mehta’s name is synonymous with innovation and leadership in India’s garment industry. As the past president of the Clothing Manufacturers Association of India (CMAI) & current Chief Mentor of CMAI and the Managing Director of Creative Garments Pvt. Ltd., he has been at the forefront of the industry’s evolution. Widely respected as one of its leading figures, Mehta’s contributions have been instrumental in shaping the growth trajectory of Indian garment manufacturing and retail, making him a beacon of progress in a highly competitive sector.

Under his stewardship, CMAI undertook several impactful initiatives aimed at strengthening the domestic market, fostering collaboration among stakeholders, and addressing key challenges faced by the garment manufacturers. 

Rahul Mehta’s professional journey began with an MBA from the esteemed Bajaj Institute in 1971. He started his career with Goodlass Nerolac Paints, where his exceptional leadership qualities quickly propelled him to the role of India Sales Manager by 1982. This early success laid the foundation for his future endeavours in the garment industry, where his strategic insights and hands-on approach have set benchmarks for others to follow.

Beyond his professional achievements, Mehta is also a celebrated figure in Gujarati theatre, excelling as a playwright, director, and actor. However, it is his visionary work in the garment sector that stands out as his lasting legacy.

At the recently concluded 80th National Garment Fair held at the Bombay Exhibition Center, Mumbai, Mehta shared his invaluable perspectives with Fibre2Fashion on the current scenario of the Indian textile and garment industry. His insights into emerging trends and strategies for navigating challenges underline his status as a thought leader in the field, offering a guiding light for the industry’s future.

Following are the excerpts from the exhaustive interaction with Rahul Mehta:

Lately there are talks of business shifting from Bangladesh to India, especially hubs like Tiruppur are said to have benefitted from it. What are your views on this trend?

The disturbances in Bangladesh have persisted far longer than anticipated. By ‘disturbances’, I do not mean violence or law and order issues necessarily, but an overall unsettled environment and uncertainty. International buyers generally do not prefer placing orders in uncertain environments, so it is but natural for them to look for alternatives.
However, the question is whether India would be considered a viable alternative. India has certain limitations, especially in terms of capacity, to take full advantage of orders potentially moving out of Bangladesh. For India to benefit from it, we need to scale up production capacity considerably—not just in terms of the number of machines but also in terms of factory size and the supporting ecosystem.
The ecosystem is critical. It is not just about manufacturing garments. India must have the necessary quantities and qualities of fabrics, accessories, and skilled manpower. These components need to come together holistically to provide a comprehensive alternative to buyers seeking options beyond Bangladesh. Unfortunately, we usually tend to address issues in bits and pieces rather than adopting a holistic approach.
For instance, we need to evaluate the fabric qualities Bangladesh specialises in. Are these fabrics readily available in India, and do Indian fabric manufacturers have the capacity to meet such demand? If not, does India have import policies that enable garment exporters to source these fabrics without much of bureaucratic or procedural bottlenecks? Similar considerations apply to accessories and skilled labour. Availability of skilled labour is frequently cited as a major issue by the industry players, and it needs urgent attention.

Are you referring to machinery per se or technology adoption when talking about ways to enhance capacities?

Both. While basic machinery is readily available, the focus must shift to automation and advanced technology. But the question is are the exporters willing and able to invest in state-of-the-art machinery? Do they have adequate incentives to make such investments? Are import policies conducive towards acquiring high-end equipment?
We need to analyse the entire picture holistically — identifying areas of concern and then filling the gaps accordingly. Consider this: Bangladesh’s garment exports are close to $40 billion, whereas India’s hover around $15-16 billion. Even if 20-30 per cent of Bangladesh’s business were to shift to India, the production capacity needed would increase significantly – by over 50 per cent! Do we have the infrastructure in place for such an increase? 
This scenario is pretty much reminiscent of the ‘China plus one’ phase, when India missed to capitalise on a grand opportunity. Now, with this ‘Bangladesh plus one’ approach, we must ensure we do not miss the bus again.

How optimistic are you about India leveraging this opportunity?

I am cautiously optimistic, but not overly so. This is because while we often set ambitious goals, we lack the necessary ambition and ecosystems to scale up rapidly. The current government’s broad vision and ambitious targets have set the tone, but if India aims to increase clothing exports from $15-16 billion to $30-35 billion in five years, the annual growth rate must be significantly higher than the 10 per cent we seem to be excited about. The biggest challenge in achieving this is the need for adequate infrastructure and a clear roadmap.  
Sustained growth requires concerted efforts to build a robust ecosystem, scale up infrastructure, and resolve existing bottlenecks.

Do you feel there is a difference in terms of entrepreneurial spirit between India and Bangladesh? Otherwise, how could they reach such levels despite Bangladesh’s textile and apparel sector being younger than that of India?

Indian entrepreneurs are some of the most brilliant globally, and second to none. However, the question is whether the same hunger and drive exist in the apparel industry. 
Unfortunately, I believe this hunger to grow and expand is somewhat lacking in India’s textile sector.
One reason might be the industry’s high labour-intensive nature coupled with relatively low profitability. This combination limits motivation to expand or attract new players. For any industry to thrive, it requires both the expansion of existing players and the entry of new ones. In India, the labour-intensive and low-margin nature of the apparel industry discourages outsiders from venturing into it. By contrast, Garment Retail—a relatively more glamorous and profitable segment—has seen significant investment from major industrial houses over the last 10-15 years.
Another factor is that manufacturing lacks glamour. Although apparel, fashion, and design are perceived as glamorous, the manufacturing side is not. This perception affects the industry’s ability to attract top talent. For instance, many companies cannot afford to pay competitive salaries to senior managers, which deters MBAs and graduates from premier business schools from joining the industry. The result, the sector misses out on bright minds, fresh ideas and innovative approaches.
However, it must also be recognised that the Bangladeshi entrepreneur has been hugely assisted by its government – not only by way of far more supportive policies, but also its success in forming international treaties to its advantage.
So, a direct comparison of the two spirits of entrepreneurship may not be truly representative.

India is aggressively establishing textile/industrial parks, which will help boost exports significantly. What are your thoughts on this?

Textile parks and schemes like the Production Linked Incentive (PLI) are excellent initiatives. However, their success depends on addressing broader infrastructural challenges. For instance, running a factory 300 kilometres away from a major city is impractical without proper infrastructure. Senior managers would hesitate to relocate unless the area offers good schools, hospitals, shopping complexes, and other amenities for their families.
The government cannot address all these issues alone. Businesses must also take the lead, with government support, to build the required ecosystem. Connectivity and supply chain issues also need to be addressed. For example, raw materials and accessories should be readily available to handle unforeseen shortages. Incentives should be provided to accessory manufacturers to open showrooms and maintain stock near industrial parks. These fundamental considerations must be part of the planning process for such large-scale projects.
Another crucial aspect is the understanding of the uniqueness of each sector whilst framing policies. For instance, the setting of minimum investment levels of ₹100 crore for a garment industry means the scheme is a non-starter to begin with.

With the budget round the corner, what are your expectations for the textile industry?

I hope the government adopts more aggressive measures in the upcoming budget, whether through adjustments to income tax slabs or other policies. However, I also believe it is time to move away from the ‘incentive’ mode. Incentives are useful for giving industries a leg up in the initial stages or when they show potential for job creation and global competitiveness. However, these should be time-bound. Beyond that, industries must grow independently.
If an industry cannot sustain itself without government support, it indicates deeper systemic issues that need to be addressed. For long-term growth, the focus should be on creating a robust and self-reliant ecosystem rather than relying on incentives.

What is the way forward for the industry, as per you?

India stands at a crossroads in the textile industry. There are huge opportunities to capitalise on. However, leveraging this potential requires a comprehensive approach—from scaling up production capacities and adopting advanced technology to building a supportive ecosystem and addressing infrastructural challenges. The success, as I mentioned earlier, will depend on concerted and collaborative efforts between the government and businesses. 
India must aim higher, act faster, and think holistically to establish itself as a global textile powerhouse.
Interviewer: Deepankar Shyam
Published on: 27/01/2025

DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.

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