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‘India will be the source of textiles/clothing supply because of its strength’
In the face of stiff global competition, the Indian cotton
textile exporters are working out strategies to enhance competitiveness, and
move into exports of value-added products. In an interview with Reena Mital,
Mr B K Patodia, chairman, the Cotton Textiles Export Promotion Council (TEXPROCIL)
says that there is immense scope for the Indian textile industry to improve
its share in the world markets, and the players are working towards this goal.
What is the scope for increasing exports of value-added
cotton textiles post-2004?
There is tremendous scope for boosting exports of value-added textiles like
processed fabrics, made-ups and garments from India. The industry is fully aware
of the challenges in the post-quota regime and is restructuring to orient its
strategy to achieve higher growth of value-added textile products. So far as
cotton yarn is concerned, exporting units are now concentrating more on dyed,
gassed, mercerised, compact yarns, core spun yarns and specialty yarns.
A lot of new capacities are coming up in cotton spinning,
weaving, processing. Are these for value-added, speciality products, or for
commodity products? What is the industry doing to improve quality and productivity?
It is true that a lot of new capacities are being set up by progressive units
for value-added speciality products. The exporting units are conscious that
future growth of the textile industry will be export-led. Therefore, a large
number of units have embarked upon backward and forward linkages.
While the spinning industry is relatively modern, a lot of ground has to be
covered in respect of weaving and processing. In this context, I strongly feel
that TUFS should be made more attractive for encouraging higher investments
in weaving and processing. The government too realises this, but there is delay
in the implementation of its intent.
Garment exporters are increasingly meeting their fabric
requirement through imports. In this situation, would the textile industry really
grow?
It is not correct to say that garment exporters are increasingly meeting their
fabric requirements through imports. In fact, with the new excise regime introduced
in this year’s budget, more garment units will source their requirements
of processed fabrics from the domestic industry. With the domestic industry
gearing into innovation and product development, supply of high quality fabrics
will increase. This, in turn, will engender excellent opportunity for supply
of high quality yarns by Indian suppliers. Thus, there will be overall growth
of the textile industry in the country.
India is expected to be among the major textile and clothing
suppliers post-2004. According to you, will this be because of India’s
strengths in textiles, or because international buyers would not want to source
all their requirements from China?
India is favourably placed in as much as it is endowed with adequate capacities
right from fibres to garmenting. Many units in the industry have undertaken
programmes for vertical integration. Several international studies have clearly
brought out that India will be a preferable source of supply for textiles and
clothing, after China. Indications are that international buyers would not like
to source all their requirements from China alone and therefore India will have
a lot of scope for bettering its performance. Primarily, therefore, India will
be the source of supply of textiles and clothing because of its strength. |
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