In 2021, India’s textile, apparel sector needs stronger focus on US market: ITF
While the pandemic resulted in business upheaval across the textiles and apparels value chain in 2020, the industry is still confident about achieving much needed growth in 2021. As Indian Texpreneurs Federation (ITF) convenor Prabhu Dhamodharan points out, the sector can make 2021 a year of progress by focusing on the US market as industry had benefited from the volumes in the market in the first 10 months of 2020, "Now, its time to step up the efforts to repeat the same success in the US market for our apparel products,” he says.
Optimistic about sector growth
The Coimbatore-based ITF, which represents the entire value chain of the textile sector, has suggested a six-pronged strategy to achieve double digit growth in the textile and apparel sector, under the theme ‘2021-A year of progress for Indian Textile & Apparel Sector’. “As a sector, we are doing $35-37 billion exports (average of last few years) of all products put together. If all goes right, we can reach double-digit growth. We can make 2021 a year of progress for the Indian textiles and apparels sector,” Dhamodharan opines.
ITF’s six point strategy for growth ahead starts with a stronger focus on the US market for apparels. The Indian home textile sector was the biggest gainer in volume terms in the US market in the first 10 months of this year. Going ahead efforts should be made to repeat the success for Indian apparel. Vietnam’s FTA with the EU will intensify competition for India in that region. At the same time, a level playing field with our top three competitors in the US market in terms of duty, combined with a quick economic recovery and consumption in the US, makes a compelling case for the Indian apparel sector to focus on the US market for immediate growth.“We need to intensify efforts and focus at all levels, including the government, cluster and firm level, to grab our share in the US market in apparels,” he says.
Focus on value addition
The second point is to focus on value addition with new capex. Using the low interest regime and easy liquidity, combined with robust demand visibilities due to post-Covid opportunities, it is time for the textile & apparel sector to step up efforts in terms of new capex investment at various stages of the value chain, with a single focus on value addition with the goal of a 20 per cent increase in per product revenue.
The third point is to use the forthcoming PLI scheme as the stepping stone for much-needed product diversification and innovation in the MMF (man-made fibre) space, and build scale to attract global buyers. Stating that all manufacturing units need to invest in technology adoption and digital initiatives, he said to equip the industry and eco system, culture-building of having an agile mindset is the forward to institutionalise the success.
The industry is currently managing trade well with sufficient liquidity due to infusion of funds in the system with Central governments Emergency Credit Line Guaranteed Scheme. The sector needs to utilise the opportunity to maintain the financial discipline to work on shorter credit terms across the value chain to improve the business performance and sustain the recovery momentum, he said.
