'Make in India' should happen with 'Make for India'
Prashant Mohota, MD of Gimatex Industries Pvt Ltd talks about the current challenges faced by the Indian textile industry, his solutions to address them, and the working structure of Gimatex in an exclusive interview with fibre2fashion.com.
What are the challenges facing the Indian textile industry?
The biggest challenge facing the Indian textile industry is competition from the other low-cost countries like Bangladesh, Vietnam, Indonesia and Pakistan. In the last few years, these countries have given a special impetus to their textile industry and been able to build new capacities with latest technology. With their competitive cost or at-par cost in terms of labour, power and interest rate and ease of doing business, they have been able to give India a run for money in terms of capturing the global market, including India. Additionally, many of them have been offered favourable import conditions in many countries in United States of America and European Union, ensuring an easy trade route.
Another major challenge is to ramp up domestic demand within the country. Indians continue to have a low per capita income, and hence lower per capita consumption of textile. Unless the country achieves a high rate of GDP, growth rate with rising income depending on foreign markets for our production would provide quite a challenge.
The next major challenge is to promote use of synthetic textiles in our lifestyle. Synthetic textiles, owing to so many technological developments, offer certain unique benefits in terms of providing a right product for various applications.
What would be your five steps to address these challenges?
The steps suggested are:
1. To create a 'Brand India' image, where Indian products can speak for themselves in terms of quality and delivery
2. Implementation of GST to ensure one market across the whole country without traditional barriers of trade between states. This will also help control the shift towards cotton by bringing cotton taxes at par with synthetic
3. Developing a better and competitive infrastructure for ensuring easier, economical and faster movement of goods
4. Promoting innovation in terms of new product development for India to make a name for itself
5. Promoting cluster approach for future growth as it helps to bring down cost using common facility and common infrastructure
What more needs to be done to make the 'Make in India' vision articulated by Prime Minister Modi a success?
The excellent campaign that Modiji and his government have been able to launch is currently plagued with poor economic condition across the globe. So, to delink this, it is most important that 'Make in India' happens with 'Make for India'. Automatically, the dependence on export or other countries' markets will have to be brought down by developing a market within the country to make the 'Make in India' campaign fully successful. Also, the job of making an industry-friendly atmosphere by easing labour laws, reducing interest rates and easing ways of doing business in India with adept judicial procedures will go a long way in ensuring the dream of 'Make in India' become a reality.
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