India’s textile and apparel sector see progress in 2021 by focusing on the US market for apparels as the textile industry benefited from the volumes in that market in the first 10 months of 2020, according to Indian Texpreneurs Federation (ITF) convenor Prabhu Dhamodharan, who recently called for intensifying efforts at the government, cluster and companies level for that.
Vietnam’s free trade agreement with the European Union would intensify competition for India, and at the same time a level-playing field with top competing nations for the US market in terms of duty combined with quick economic recovery make a compelling case for Indian apparel sector for immediate growth, he was quoted as saying by a news agency.
Stressing on value addition with new capital expenditure, he said using low-interest and easy liquidity combined with robust demand during post-COVID-19 times, the sector can hit the target of 20 per cent increase in per product revenue.
The sector should use the forthcoming production-linked incentive scheme as the stepping stone for much-needed product diversification and innovation to attract global buyers, the convenor said.
Stating that all manufacturing units need to invest in technology adoption and digital initiatives, he said to equip the industry and eco system, culture-building of having an agile mindset is the forward to institutionalise the success.
The industry is currently managing the trade well with sufficient liquidity due to infusion of funds in the system with Central governments Emergency Credit Line Guaranteed Scheme, he said.
The sector needs to utilize the opportunity to maintain the financial discipline to work on shorter credit terms across the value chain to improve the business performance and sustain the recovery momentum, he added.