Foreign hello everyone the textile industry of India has been considered as one of the finest textile industries of the world since ancient times the reference of textile manufacturing dates back to The Vedic times and you can also find its reference in rigbeda back then the.
Indian textile industry was formidable in the global markets with huge demand in the Roman Egyptian Greek and Arabian markets also guys it is believed that the flourishing Indian textile industry was the major contributor in making India the Sone kitchen or the golden Sparrow but things changed completely in the mid 1700s when the britishers passed.
Several laws and later imposed heavy taxes on the Indian Weavers to promote the textiles of the British business houses not just that heavy restrictions were put on and the Indian textiles were barred to enter the European markets gradually and gradually the British industry is flourished over the deathbed of Indian textile industry cut to post.
Independence even then the dethroned king of the textile industry couldn’t reach the actual potential it had guys India is the largest producer of jute and cotton and the second largest producer of the synthetic fibers but despite all these India slipped to sixth position in the Garment export industry from the second spot from being the king.
Of textile and land of beautiful Fabrics currently even Bangladesh and Vietnam is the head of India in terms of textile and government exports as with the report of Economic Times exports in India declined by three percent during 2015 to 2019 and by 18.7 percent in 2020 alone and yet during the same time countries like Vietnam and Bangladesh.
Have gained the share but guess what the government of India is trying to do something stupendous to revolutionize this landscape of textile industry and is going to set up whooping 7 megatextile Parks across several parts of the country under the mega integrated textile region and apparel scheme but why textile ladies and gentlemen textile.
Industry contributes to around two percent of the India’s GDP and accounts for around 12 percent of export earning on the top of that the textile industry is the second largest employment provider in India after agriculture thus Reviving The textile industry can not just create a plethora of jobs but also push the Indian economy to all together.
At different level so ladies and gentlemen in this video we are going to discuss two major points what went wrong in the Indian textile and garment Market in the modern area that is slipped from the second position to the sixth position and how can government’s Mithra scheme or Mega integrated textile region and apparel scheme can revolutionize the.
Textile industry of India and bring back the Lost glory be with us till the end before starting out let’s first understand the origin of this Mitra scheme and the model behind it so guys it all started 37 years back when tripur was a small town in Tamil Nadu where textile business was prominent and tripur exported textile worth Just.
Around 15 crores cut to 2021 tripura exported a staggering 33 000 crores of textiles which is approximately around 50 percent of India’s total textile exports how was that even possible a grouping 23 percent annual growth for the past 37 years guys this was all possible with the efforts of the local businessmen entrepreneurs and Tamil Nadu.
Government’s continuous help there are special industrial parks with high class infrastructure to support the textile industry among the many the leading industrial park is netaji apparel Park which is spread across 150 acres alone contributes to one tenth of three Poor’s April export the textile sector in tripur alone provides around 6 lakhs.
Direct employment and 4 lakhs indirect employment and guys inspired from this model the government of India is trying to replicate this model to other parts of the country as well where the entire value chain will be Consolidated at one place and named it Mega integrated textile region and apparel scheme so to understand will this scheme boost the.
Indian textile sector firstly we need to figure out the problems which push the Indian textile sector below Vietnam and Bangladesh and secondly why is the government forcing the textile industry out of the many possible reasons two major problems which pushed the Indian textile sector below Vietnam and Bangladesh are lack of infrastructure.
And duty-free access to the international markets let’s dive Deeper by lack of infrastructure I mean the infrastructural deficiencies and excessive paperwork which has to be done at the ports in India which leads to the delay in the transportation of both raw materials and outputs and guys delivering the order is quite important.
In the textile sector on the other hand the Bangladeshi firms are located majorly at or near the Port City moreover if you take a look at Vietnam it has invested a huge chunk of money in the infrastructural development and and built a manufacturing city named Ho Chi Minh City so that the factories and suppliers stay close to each other on.
The other hand if you see in India the entire supply chain seems to be quite fragmented if you take an example of cotton it is grown in Maharashtra and Gujarat spun in Tamil Nadu processed in Rajasthan final production is done in cities like Delhi Kolkata and finally the export is done from the ports of Mumbai and Gujarat guys now you can.
Imagine the amount of money that is wasted in this Bharat Brahman of cotton and other textiles and of course this is finally added in the final cost of the textile as fried cost or Transportation cost now what if the entire value chain is Consolidated in one particular place this will indeed save a huge chunk of money and time that is wasted in.
Transportation right ladies and gentlemen this is what the mega textile parks are meant for from spinning to the final production all will be done in one place and the entire value chain will be Consolidated at one place now coming to the second problem that is duty-free access to the international markets guys Bangladesh is an LDC that is least.
Developed country thus being an LDC it gets a benefit under EBA that is everything but arms in Europe EBA basically is a trade initiative of the European Union launched in 2001 According to which the LDC or least developed countries can export everything except arms and weapons duty-free and quota free not just Europe.
Bangladesh gets preferential benefits from 50 other countries including Australia China Canada UK India turkey Etc before 2000 Bangladesh had around three percent market share in Europe and Canada while in just two decades its market share increased to around 12 to 13 percent in both the regions boosting the Bangladeshi textile markets to such.
An extent that it raised ahead of India whereas Vietnam has a free trade pact with the European Union which ultimately makes life easier for these two countries on the other hand India has to pay 10 percent Duty on exports to the European Union nevertheless India is trying really hard to get a free Duty access to several regions and countries.
So ladies and gentlemen to sum up just think the booze that Mega textile Park will give to the manufacturing and production combined with the duty-free trade access will give the Indian textile industry the much needed push and wait wait the good news are not over yet the textile industry of the undefeated textile leaders of recent.
Times that is China seems to be dwindling postcode if you take a look at the figures from January to August 2022 the profits of Chinese textile industry fell by 14 due to the rise of raw material cost and imposition of restriction from the United States on top of it Bangladesh is also graduating from the LDC in November 2026 which.
Means that after 2026 Bangladesh will be called developing country and will not get any kind of free and preferential benefits from the developed country which Bangladesh is getting right now and of course this might impact the Bangladeshi textile industry to a level that can be capitalized by India to raise for the leadership position in the.
Global textile industry don’t you think this is a golden opportunity for India let us know your thoughts in the comments so in this scenario if Mega textile parks are executed well and duty-free trade agreements are signed for the international markets there is a high chance that India will again be a global leader in this segment so that’s.
All for this episode guys let me know your views on this in the comment section and also don’t forget to like the video if you find it insightful share it with your friends and subscribe to this channel for more such business content
