The Economic Review advocates a renewed preparation of India’s strategy for the textile sector in accordance with the increasing global demand of products made from man -made fiber (MMF). India accounts for 9.2 percent of MMF production, which is much less than global giants such as Vietnam, China and Taiwan. This is important in future exports as MMF stakes 77 percent in global fiber consumption in 2024 while only 22 percent of cotton. Traditionally, India is globally known for cotton and cotton -based products.
There has also been a concern about the lack of localization in the sector of cotton and complexity in the price chain, which is lagging behind its global competitors according to the cost. The review describes the need for integrated fiber-to-fashion firms like China and Vietnam.
The review said, ‘The emphasis on man -made fiber globally has increased while India is still dependent on cotton. Due to this, India’s competition in the global market is getting limited. MMF can take advantage of the rapidly growing global demand of MMF by exploring possibilities in the price chain. The MMF area must move towards integration under the same roof to gain good quality and benefit from MMF production like competitors and needs to invest in research and development as well as sustainable production techniques. ‘
Textiles in India are performed by small and medium enterprises (SMEs) of all independent and clusters spread across the country. Expressing concern about the cotton area, the review said that cotton production in India is in Gujarat, Madhya Pradesh and Andhra Pradesh while it is sent to Tamil Nadu to convert it into thread and once again to weave it in cotton fabric Maharashtra and Gujarat are sent. The review states, ‘The cost of localization and complexity in the price chain increases the cost compared to global competitors. In contrast, integrated fiber-to-fashion firms of competitive countries such as China and Vietnam export low cost products and have the same quality and are able to mold themselves according to rapid changes in the industry. ‘
The review states, ‘Simple and liberal customs procedures reduce regulatory costs. This leads to an increase in export competition to global textile competitors like China and Vietnam. On the other hand, there are disruption of complex processes in the path of textile exporters in India. For example, exporters have to carefully accrete each square centimeter of clothes, buttons and zipper used.