(MENAFN- KNN India)
New Delhi, Jul 22 (KNN) The Global Trade Research Initiative (GTRI), a prominent think tank, has proposed a series of measures aimed at revitalizing India's garment export sector.
These recommendations come in response to India's declining market share in global garment trade and its lagging performance compared to competitors.
GTRI's key suggestions include temporary suspension of quality control orders (QCO) on polyester and viscose staple fibre, expansion and relaxation of criteria in the textile production linked incentive (PLI) scheme, overhaul of Directorate of Foreign Trade (DGFT) and Customs procedures, and addressing monopolistic practices of domestic suppliers.
The think tank identified complex procedures, import restrictions, and domestic vested interests as major obstacles to export growth. Sourcing quality raw fabric, particularly synthetic fabric, was highlighted as a root cause of exporters' challenges.
Recent data underscores the urgency of these reforms. In 2023, India's garment exports stood at USD 14.5 billion, significantly behind competitors such as China, Vietnam, and Bangladesh.
GTRI co-founder Ajay Srivastava noted, "This shows India significantly trails behind."
The report reveals a stark contrast in export growth over the past decade. From 2013 to 2023, Bangladesh's garment exports grew by 69.6 per cent and Vietnam's by 81.6 per cent, while India's increased by only 4.6 per cent.
Consequently, India's global market share has declined since 2015, with knitted apparel dropping from 3.85 per cent to 3.10 per cent and non-knitted apparel from 4.6 per cent to 3.7 per cent.
GTRI argues that quality control orders have undermined the competitiveness of India's man-made fibre (MMF) supply chain by limiting access to affordable and specialized raw materials.
The report also criticises the Bureau of Indian Standards for delays in registering foreign suppliers, forcing exporters to rely on domestic monopolies at higher prices.
Unlike their counterparts in Bangladesh and Vietnam, Indian exporters face daily struggles in accessing quality imported fabrics.
High import duties and complex DGFT and Customs procedures further complicate the situation, requiring meticulous accounting for imported fabrics.
The report also notes a concerning trend where garment imports to India rose by 47.9 per cent between 2018 and 2023, while textile imports increased by 20.86 per cent during the same period.
GTRI further highlighted inefficiencies in the current system, such as the requirement for unutilised advance authorisations to be surrendered to DGFT with a non-utilisation certificate from Customs, which increases transaction costs for exporters.
As India seeks to enhance its position in the global garment trade, these recommendations from GTRI offer potential pathways for policymakers to consider in their efforts to boost the sector's competitiveness and export performance.
(KNN Bureau)
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