If you have ever wondered which sector PM Narendra Modi’s ‘Make in India’ stratagem is banking on, it is none other than the garment industry. The country is currently catering to its mammoth market in the US and the EU, and over the years, has spun a story of enviable success.
The rising demand for textiles in these nations has boosted the supply more. Slugging growth graphs are no longer a concern. Raw material sources are being improved.
Beyond This, The Country Is Performing Also Because Of The Following Global Factors:
- The steady growth of the American economy.
- Progressive slowdown and downfall of the Chinese exports to the US due to soaring cost of labour and power shortage.
- An increase of currency value in Indonesia and the subsequent contraction of growth.
- High cost of credit in Vietnam.
- Labour unrest and strike actions in Cambodia demanding pay hike or workers and the resulting rampage of a textile plant catering to the US sportswear firm, Nike.
- Insufficiency in supply and safety doldrums from Bangladesh following a recent and major fire outbreak in Rana Plaza garment factory.
What’s The Scenario Of India’s Export Competitiveness?
In the year 2014, the country’s exports to the US were reported to be 6.5% higher than the previous year. The Office of Textiles and Apparel (OTEXA) of US, that reported the rise, mentioned that this has been a significant increase compared to the annual average rise of 2% from 2009-2013.
What’s interesting here is, this rise has been despite the rupee strengthening. A strong rupee usually leads to the loss of export competitiveness. Still and all, this was otherwise. We can say, the absurdity was due to the State’s demand pick-ups.
However, there are other factors involved as well. For instance, the supplies of domestic cotton in the country have enlarged, pushing textile production to its peak. In 30 years, it has happened that the country held a position as the world’s top cotton producer, leaving even China behind.
Winds Of Change Are Here In Every Export Hub Of The Country
Yes, the changes have been slow, but steady. And they are contributing to the country’s economy beyond the shadow of a doubt. International competition is still intense, ready to change anytime. But, somehow, every export hub in Kolkata and others parts of the country is nevertheless performing strong, ready to face the challenging situation with all zeal.
Due to globalisation, India is also opening up to better technology and inviting capital from abroad. Just next to the mighty agriculture sector, textile is presently one of the country’s most important industries.
Most importantly, other than handsome value added and export earnings, this economic activity is meeting the needs of an employment generation. Yes, it has provided employment to over 30 million people and has room for more. This, perhaps, is the best part of the entire effort. What do you think?