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'Strengthen Indian textile eco-system to boost exports'
10
May '18
Labour laws in India need to be relaxed along with enhancing incentives in order to become a preferred sourcing destination for textile products, says a recent report. India is not perceived as a low-cost labour destination and its incentives are not on par with that of China, resulting in Indian products not being price competitive, the report adds.

Labour laws in the textile industry in India are outdated, thus hampering the country from becoming labour competitive, says a report formulated by the Indian Institute of Foreign Trade (IIFT), commissioned by the ministry of textiles.

The textile sector of India also needs to innovate to come up with new products, business models and collaborations. The study adds that there is a need to digitise the entire supply chain, and comply with quality and legal issues. Encouraging product and market diversification for different textile and apparel products, and clearly positioning Indian textiles in the markets abroad can be of help, as per the IIFT.

Lack of connectivity and poor roads leading to weaver hubs is the reason for dependence on buying agents as the conditions make it difficult for buyers to make personal visits, said media reports quoting the study.

It also notes that importing latest machinery is a costly affair due to taxes like basic duty, countervailing duty (CVD) and special CVD along with landing charges and additional cess. Thus, small manufacturers avoid upgrading and compromise on quality. On the contrary, countries like China Vietnam and Bangladesh encourage the use of latest technologies and levy very less duty on machinery.

The study also suggests offering higher wages to carpet weavers by increasing the designer-weaver-buyer connect, as the sector is facing a threat of depletion of skills due to low per day wage rate. Younger generation is not getting into the field as it is financially unviable. Vocational courses in carpet weaving are also suggested to safeguard the skill of weaving Indian handmade carpets.

Most weavers, designers and others have poor knowledge about the international quality compliances, therefore regular training must be imparted to make them quality conscious. The report further added that it is important to focus on promoting niche areas covering indigenous weavers, artisans and craftsman to maintain a unique identity. (KD)

Fibre2Fashion News Desk – India


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