GET THESE WRINKLES OUT OF SOUTH ASIAN TEXTILE STORY

Context: South Asia became a major player in the global textile and clothing market with the onset of the third wave of global production.

What is the standing of countries?

Bangladesh: It is the 3rd largest global exporter. This is due to lower production costs, FTA with western buyers, and adoption of technology. It specializes in the low value & mid-market price segment.

India: Holds 4% share in the global textile and apparel market, and is in 5th position. The Technical Upgradation Fund Scheme (TUFS) has promoted technical linkages in the cotton and textile industry. However, India is yet to move to man-made fibers.

Pakistan: It is very focused on cotton products. However, it is falling behind due to skilling and policy implementation issues.

Sri Lanka: Progress in training, quality control, product development, and merchandising are attracting international brands to Sri Lanka.

What does the future hold?

The Fourth Industrial Revolution (4IR) is characterized by automation including robotics, artificial intelligence (AI), 3D printing etc. Digitisation can be important in designing, prototyping, quality control and timely delivery. The Asian Development Bank anticipates the challenges of job losses and disruption, inequality and political instability, concentration of market power by global giants and more vulnerability to cyber-attacks.

India is facing high unemployment rate, India faces the challenge of job creation in wake of increased automation. The integration of skilling and technological investments is required to adapt to new jobs.

What is the concern regarding ‘Sustainability’?

Textile and apparel affluents account for 17%-20% of all water pollution.

Bangladesh has started “Green Manufacturing” – to help conserve energy, water, and resources.

India is focusing on sustainable inputs such as – regenerative organic farming and sustainable energy.

Further the government can provide tax exemptions, reductions in imported technology, accessibility to financial incentives to boost the industry.

The labour lead:

Access to affordable labour is a huge advantage for the region. The US-China trade war opens the door for India and Pakistan as they have strong production bases. Bangladesh investments in technology in the past is an added advantage.

India extended tax rebates in apparel exports till 2024. Labour law reforms, income tax relaxations, duty reduction for man-made fiber, etc. are other notable moves.

Way forward:

1. Need for diversification with respect to technology, product basket and client base.
2. Adaptability in meeting demands for man-made textiles & other complex products and services.
3. Reskilling and upskilling of labour force.
4. New approaches in compliance, transparency, occupational safety etc.
5. Government’s proactive support in infrastructure, liquidity, capital, and incentivisation.

Source: The Hindu