Source- This post on the Status of Garment sector in India has been created based on the article “India’s garment export woes self-inflicted: report” published in “The Hindu” on 22 July 2024.
Why in the news?
Recently, Global Trade Research Initiative (GTRI) published its report.
Status of Garment sector in India
1. A report by the Global Trade Research Initiative (GTRI) highlights that India’s garment export sector is struggling due to high duties, import barriers, and complex customs procedures.
2. In 2023-24, garment exports were $14.5 billion, down from $15 billion in 2013-14, while Vietnam and Bangladesh saw significant growth in their exports.
Key highlights of the report:
1. Comparative Decline: Vietnam’s garment exports grew by 82% to $33.4 billion, and Bangladesh’s by 70% to $43.8 billion, whereas India’s exports decreased.
2. Import Restrictions: High duties and complicated import procedures for raw materials, especially synthetic fabrics, are major hurdles for Indian exporters.
3. Domestic Issues: Quality control orders for fabric imports have increased costs for exporters, forcing reliance on more expensive domestic supplies.
4. Procedural Complexity: Outdated customs and trade procedures require meticulous tracking of all imported materials, adding to exporters’ burdens.
5. PLI Scheme Ineffective: The production-linked incentive (PLI) scheme for textiles, launched in 2021, has not attracted significant investment and needs revision.
6. Rising Imports: India’s garment and textiles imports grew to nearly $9.2 billion in 2023, with further increases expected if export declines are not addressed.
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