October 2019 Edition Apparel October 2019 issue | Página 81

INDUSTRY INSIGHTS
enhance liquidity. Further, there are many small
GST irritants which need important redressal,
for which a special officer needs to be assigned.
Rupee appreciation of almost 2.43 per cent in
the last couple of months has also contributed to
cheap imports and poor export competitiveness
in India.”
WHAT NEXT?
India is one of the largest global producers of raw
materials including cotton and man-made fibres.
However, the cost of production of raw materials
is much higher in India, owing to structural issues
such as minimum support price (MSP), anti-
dumping, and many more. This has further made
the industry uncompetitive on the global platform,
leading to stagnant exports and increasing
imports of value-added products.
Apart from the release specifications stated
by NITMA, the International Cotton Advisory
Committee (ICAC), in February this year, had
intimated that India’s cotton production is likely
to drop by seven per cent due to ‘insufficient
rainfall’. This, as compared to China’s estimated
one per cent-increase in production, was likely
THE COST OF
PRODUCTION OF
RAW MATERIALS IS
MUCH HIGHER IN
INDIA, OWING TO
STRUCTURAL ISSUES.
to cost India its distinction as the world’s largest
cotton producer, the committee predicted.
The NITMA release also says that among the
various challenges the spinning industry faces
at the moment, taxes levied by the State and
Centre, high interest rates, high cost of raw
materials in comparison to global prices, and
cheaper imports of garments and yarns from
countries such as Bangladesh, Sri Lanka, and
Indonesia, are exacerbating the situation.
NITMA summed up its statement mentioning
that all of these factors, combined together, have
forced many textile units across India to lower
their capacity by as much as 50 per cent. The
association also warned the industry that the
upcoming cotton crop of about 40 million bales,
which is valued at R80,000 crore, may not find
any buyer in either the domestic or overseas
markets. It also mentioned that the Indian
industry’s lack of market-driven identity
will decrease its chances of having takers for the
cotton production.
However, experts are hopeful that if the industry
utilises its resources mindfully, it will grow on to
reach its full potential, remaining unaffected by
external factors. It will create a positive pull across
several sub-areas, hence leading to a positive
growth graph.
APPAREL
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