Topic: Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth.
7. Discuss the challenges facing the Indian Textile Sector in detail and suggest ways and means to upsurge domestic manufacturing and promotion of exports in the this Sector.(250 words)
Why this question:
The question aims to analyse the challenges of textile industry in the country and need for a strong policy to address the issues and make the sector a strong and flourishing one.
Key demand of the question:
Discuss the challenges facing the Indian Textile Sector in detail and suggest ways and means to upsurge domestic manufacturing and promotion of exports in the this Sector.
Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.
Structure of the answer:
First discuss key statistics of the textile sector. Indian textile industry is one of the largest industries in India. It is the second largest industry in terms of providing employment opportunities to more than 35 million people in the country. Indian Textile industry contributes to 7 per cent of industrial output in terms of value, 2 per cent of India’s GDP and to 15 per cent of country’s export earnings.
List the challenges of the Indian Textile Sector –
- The Indian Textile Sector is losing to competition because of lack of FTAs (Free Trade Agreements) with the EU and the USA.
- The small scale of business is making it difficult for textile manufacturers to compete on cost with players from outside.
- India is facing huge competition from other countries in Ready-made Garment (RMG) Exports, particularly cotton .And while the world of fashion is moving towards “Blends”, India is not making many blended apparel items. So on the one side our traditional items are facing competition, and on the other side we are behind in Product Diversification.
- Textile imports from Vietnam and Bangladesh are cheaper for buyers across the world.
Suggest remedies to the above challenges.
Conclude that Exports are critical, but textile manufacturers should focus on the opportunities in the domestic market too.