Outdated labor laws in the textile sector, is hampering India’s growth in global textile industry. The country is not perceived as a low cost labor destination. Incentives offered in India are far below those offered in China. So, Indian products lose on price competitiveness in global markets.
Bad roads and poor connectivity around weaver hubs have led to reduced number of visits by buyers, leading to a greater dependence on buying agents. The high import cost of machines deters many small manufacturers from upgrading to latest technology, thereby contributing to compromises on quality.
There is a need for strengthening the eco-system for textile exports, integrating the fragmented textile value chain and investing in skill upgradation to boost India's sourcing potential. Other necessary measures are innovation in new products, business models and collaborations; digitisation of the entire supply chain from product development to delivery and ensuring compliances related to quality and legal issues.
Key to success will be encouraging product as well as market diversification for varied textiles and apparel products and clear positioning of Indian textiles in international markets. The focus should be on promoting niche areas that cover indigenous artisans, weavers and craftsman as they provide a unique identity to the country’s textile output.