Dayanidhi Maran, Minister of Textiles, has cautioned the textile industry to look beyond the traditional western markets of the US and the European Union to stay afloat in the aftermath of recession.
Maran stressed the urgency for diversification to scale down its vulnerability due to overdependence on western markets, which is reeling under economic downturn. An overhaul of the ‘entire production system’ is essential to withstand the incursion of China and Korea in the international market.
“We don’t look beyond US and the EU. Our product mix is very generalized; our product basket is limited to tops, trousers, T-shirts and some hosiery items. We do not know that people require clothing anywhere else other than US and the EU. We have scant commercial idea about application of fibers for non-clothing applications,” Maran said while addressing the Federation of Indian Chambers of Commerce and Industry in New Delhi.
The textile industry is heavily dependent on states for financial support, though it is one of India’s major export revenue earners. Another drawback is that latest technological advances have not yet reached the industry.
Despite being India’s second largest employer, progress in textile industry is slow due to its disorganized and fragmented structure. The sector comprises of nearly 15,000 companies, employing 50 million people. Annual textile export amounts $20 billion, which accounts for 15% of country’s total export.
Recession spelled doom for many of these companies, as they export exclusively to western markets. Thousands of jobs were lost in the sector and government was forced to bail out the industry. Together with spiraling energy costs and price of raw materials, the industry is choking today.
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