Seven Benefits Of Trendy Clothing Brands That May Change Your Perspective

The textile industry is among of the most popular and innent sectors in India. The industry contributes approximately 14% of the overall industrial production and provides of employment for more than 350 million individuals. Because of the healthy policies adopted by the Government of India, investment opportunities have risen exponentially in this sector.

It is widely known that Indian clothes and textiles are highly valued in both foreign and domestic markets. Costs of production are low and there is a supply of labor at a low cost have drawn many foreign companies to set up their operations in India. The Union Budget 2013-14, Government of India announced a variety of initiatives, including exempting taxes for garment and textile industry.

The new tax regime for excise suggested in the budget could help ease the burden of cost in the sector. The budget cuts off excise duties on garments with a brand name. This will not only decrease manufacturing costs however, it could also attract foreign investment. The industry is expecting an increase of 5-7% in FDI in the coming fiscal year.

The announcement of the Government of India to keep the Technology Upgradation Fund Scheme (TUFS) in the 12th five-year strategy (2012-17) will boost investment in technological advancement in the industry of textiles. In the present market environment it is crucial to Indian garment and textile manufacturers to remain competitive in the field of technology. In the most recent five-year strategy, Government of India plans to invest almost US$9 billion in textiles. 9.1 billion in textiles, as opposed to US$4 billion in the prior plan.

Other than Government of India, several initiatives announced by state governments have increased investment opportunities in the industry.

Recently, officials has taken a decision to adopt a new textile policy in a special package that was designed specifically for 2013. The policy approved through cabinet members of the Rajasthan Cabinet in July was anticipated to bring in the investment of nearly 110,000 crore in for the coming seven years within the state. Not just that but it will also offer jobs to 50k individuals.

It is believed that the West Bengal Government is expecting an investment of 14 billion in the integrated Textile Park located in Belur. The park for textiles located in Belur will be home to approximately 5,000 power looms, and the operation is anticipated to start within two years of the construction. In addition, the Bengal Government is also expecting an investment in the amount of Rs.1 billion with the construction of the silk parks in Malda.

In its most recent textile policy In its latest textile policy, the Gujarat Government has announced 5 interest reduction on bank loans for those looking to build new facilities to add value to textiles such as ginning, processing weaving, knitting, weaving or machine-carpeting. The subsidy is available for five years.

India is predicted to be an important player in the global garment and textile industry in both a way of consumption and as a manufacturer. But, in order to stay ahead of the competition, it is essential for Indian producers to raise the game. International clothing brands have already begun to consider India as a potential investment opportunity. The steady growth of the industry along with the increasing demand for Indian clothing and textiles have opened new avenues for investors in this sector.

Indian textiles industry is established one with strong characteristics and a bright outlook. In reality, India is the second largest producer of textiles worldwide, ahead of China. Similar results can be seen in the production of cotton and consumption trends in and India is ranked just behind China as well as the USA. India has many good outlets near the textile factories in the form of shops of garments like Luxury Fashion which are available with all varieties all the time.

The business of manufacturing textiles is one of the pioneering activities within the Indian manufacturing sector , and is a key element in the economic development of the nation, which is heavily based on the agro-alimentary sector. It employs around 35 million people and generating around 35 million dollars in revenue, the textiles industry is a significant revenue source for foreign exchange and is further proven by its 14% share in industrial production as well as the 16% of the export revenue it earned.

The textile industry isn’t limited to export and manufacturing of clothes. The growth of Indian textiles is due to its efficient vertical integration policies that aid operators in controlling the processes that, while being far beyond the simple process of manufacturing, are able to have an influence on it, such as like processing of raw materials.

Therefore cotton, jute wool or silk, as well as synthetic materials are also manufactured in this industry to supplement and improve the quality of the garments manufacturing industry. About one-quarter of the spinning activities in the world are located in India which is positioned right after China. The looming process is another factor that drives significant activities in this sector and in reality it has a staggering 61% of the market, including handlooms. India is also a major manufacturing of textiles, yarn and fibers in the world and has 12 percent of the global production volume. India is ranked in the second spot manufacturing silk and yarn made of cellulose, and is being in the fifth spot for synthetic yarn and fiber.

Indians know the importance of being just one step ahead of the changes in the global economic climate. The industry is currently preparing for a share of opportunities that are expected to emerge from the free market that has been liberated of quota limitations and other trade obstacles. Industry leaders are increasingly expanding and modernizing thanks to the so-called Textile Upgradation Fund Scheme implemented by the government.

The local textile industry is currently at a critical moment where it needs to be ready to rise and take advantage of the opportunities offered by the liberalization of international market.

However, manufacturers were caught out of the loop when new players began to emerge onto the market during a time that most companies were focused on the upcoming opportunities from the market that was quota-free. Strategies and policies were mostly designed to expand and modernize but left room for local players. It is now clear that they have enjoyed the freedom to develop their strategies and are better well-equipped than businesses that are geared towards exports.

Insufficient competition is taking away the enthusiasm of consumers, affecting activities on European as well as USA markets. With the end of quotas as well as other trade barriers, analysts believe that the market will provide new opportunities, with evaluations that reach S$1.4bn to buy towels as well as US$1.8 for bedding. China’s massive capacity for production and growing strength has caused Europe as well as USA markets to take a seriously rethinking.

In order to stop the huge influx of their goods, EU and USA have placed restrictions on trade, which will also force retailers to reconsider their strategy for sourcing by diversifying away from China. In the present, India has a lot to play. As the world’s traders are becoming aware of the danger of relying on one manufacturing partner like China, India could do well to present a beneficial alternative for buyers in the international market however it is only achievable by implementing a proper and efficient development strategy and macroeconomic policy.

In this regard the majority of manufacturing firms in India are moving towards modernization and expansion options. Manufacturers are turning to funding programs that push EPS towards higher growth and severing equity along the way. Collaborations between businesses and foreign players and the establishment of buying offices, and the Government’s efforts to improve the quality of export and production are just a few evident indicators of Indians taking over the international market.
The opportunities that have emerged have brought along Indian textile producers with the growth strategy. The Textile Upgradation Fund has enabled many of these operators to expand their capacity in the last three years of fiscal year. These strategies for expansion did not only have an impact on the volume of production and efficiency, but also assisted businesses in providing better quality products.

Terry towels made by Indian factories comprised nearly 22 percent of global market. In addition, with a 19% part of the market for bed linen, India stands as a high-quality source for the USA. Indian product lines are geared on quality and innovation. Clear efforts to improve quality as well as innovations via R&D programmes as well as other features that add value provide a completely new dimension to Indian products. The result was more profit than other producers in the region.

Customized and high-value-added products are not generally affected by changes to market parameters. This is why there were not any significant price changes for Indian markets during the removal of quotas period. However, this was not the case for other products of regional competitors like China in which the prices were lowered considerably in favor of buyers.

Greater competition with neighboring countries
China reacts to removal of quotas by encroaching on the US market by importing its textiles. The US was left with no choice except to reintroduce trade barriers in order to ease the market, allowing buyers to explore different options for purchasing and giving India an unexpected advantage in the global market.

The current situation isn’t completely in the bag for India However. It must remain vigilant as its neighbours begin to take on a similar global adventures with a zealous and a spirited attitude. Pakistan as well as Bangladesh are expanding at a rapid speed, reducing the gap to India in an astonishing way. In the past three years Pakistan exported four times more pillowscases to the USA as compared to India! Pakistan to be precise is one of the most significant cotton producers in the world and is a beneficiary of preferential accords between EU as well as US even in the time of quotas.

Pakistani Government has gotten this game, and has been encouraging the development by implementing a 6percent R&D aid program. Other countries, including Turkey are also involved in the race.
The Technology Upgradation Fund Scheme (TUFS) has pushed for further 10% of capital subsidies in the purchasing processing equipment in order to aid expand plans. Processing industries are likely to benefit from this measure over the long run.

Union textiles has released an official white paper, titled Vision 2010 where it gives specific information regarding its goals and objectives in relation to the US Billion export market.

The operators are more and more considering consolidating methods to increase capacity for production, which will place them in a better position in the free and global market. Therefore, mergers and takeovers are frequently occurring, with businesses joining together with smaller ones to meet global issues.

Leave a Comment

Your email address will not be published. Required fields are marked *