Conferences & Events

Conferences & Events

ICAHT 09

There is an urgent need for improving export infrastructure, lowering transaction costs and neutralising the impact of direct and indirect taxes
There is an urgent need to develop new markets and garment industry specific assistance is extremely critical
It is estimated that in totality Indian goods are more than 20 % costlier than some of the competing countries like China, Bangla Desh, Vietnam, Cambodia etc.
Studies have corroborated that a significant proportion of Indian exports are affected by non-tariff barriers/ non-transparent called NTBs. There are moves in some developed countries to bring in import restrictions on non-trade issues such as animal welfare, labour norms and climate issues.

To deal with our trading partners on an equal footing and force them to concede bilateral concessions, we need to create our own mandatory standards and testing requirements

Government needs to have unity of thought to address the issues of raw material costs , sectorial discrimination, interest burden etc. A mechanism needs to be evolved to compensation the exporters for duties and for deficiencies in infrastructure.

For Industry Associations

Study NTBs & Address them

One important shortfall in industry has been that there is no cohesive study. It is important for various products within the textiles sector to jointly study the NBTs faced by Indian exporters. This will help address the issues better. The response to the NTBs could be a mix of government policy and industry initiative. Having a centralized data base of NTBs will also help in separating easier markets from the more difficult ones.

Study the opportunities available in the FTAs

It is important for industry especially, the small and medium companies to understand the new opportunities that are arising out of the new FTAs that are being negotiated or have been negotiated. It is important for industry to note that the latest FTA for the textile industry will be with ASEAN which is expected to come into effect from January 2010.

Multiple Buyer Compliance Inspections

The system of buyer specific compliance inspections is an unnecessary time consuming and wasteful activity. Infact efforts should be made for a compliance code which should be acceptable to all the buyers

Build value Chains

Value chains across FTA partners. Is it possible to build a value chain, for instance, with Indonesia in the area of textiles and clothing? If possible then it will provide new opportunities for the industry in global markets.

India: Losing out due to limited preferential access

One of the key reasons behind loss of competitiveness of textile exports from India (apart from other factors) is the absence of effective preferential access as compared to the excellent market access enjoyed by other competing countries. Considering the fact that the T&C export sector in India operates at a thin margin of around 5-6%, even a difference of 3-5% in the tariffs (on account of preferential treatment ) is a huge determinant in global competition matrix. The industry needs serious efforts to get into new product lines. Build Capacity & Competitiveness through Technology Up-Gradation, Productivity Enhancement, Cost Control, Developing Marketing Net-Work etc. The Industry today has to move from simple price competitiveness to comprehensively better value propositions.

FOR THE INDUSTRY

Businesses are beginning to take action to green their products and reduce emissions resulting from the manufacturing, distribution, use and disposal of those products.

  1. Take the first step: Determine a Baseline
    A Life-Cycle Assessment (LCA) will give the information the company needs about its business’s carbon footprint to take action.
  2. Making Energy Reductions
    Making energy use reductions will be a major factor for the company to become Carbon Responsible
  3. Demonstrate Your Efforts: Label Your Products

Carbon Responsible / Neutral

The business community is starting to realise that taking action on climate change can help them gain credibility, enhance their brand, show leadership in their industry as well as bolster sales and customer loyalty. To get that credibility you need to talk about the reduction actions you have taken

Shift to Value Thinking

In order to move forward we must shift from functional management to Value Thinking This can, and should, be applied all the time, not just in formal studies and workshops. The industry should start considering value thinking as a special case of decision making and thereby, open up the possibilities for including all appropriate tools with the proviso that it is impossible to plan successfully to achieve value without taking into account uncertainty.
Today, the textiles and apparel market is increasingly global operating in a highly competitive market, requiring specialisation and targeting market niches. More significant is the array of new production and control technologies, controlled through a “quick response” network that effectively reduce the distance between producers and retailers.

Electronic Fit and Fabric Simulation

Increasing role of software was well predicted in virtual fit or E-fit of garments enabling quickening of product development and sample approval process in garment manufacturing. Apart from reducing the process lead time virtual fit also enables reducing number of alterations thus reducing associated cost.
Seamless apparel is already in and now it is the turn of thread less seam.

Nanotechnology Application in Machineries and Equipments

While Nanotechnology application in textile material is already taking the world by storm, surprisingly its potential application in garment manufacturing machines and accessories are not explored yet.
One of the current developmental trends among sewing machine manufacturers is reducing the number of moving mechanical parts to reduce complexities, noiseless but oil less technology.

Cross Breeding of Technology

Fabric is dyed or printed all over width while only around 85% of total area is utilised for garment making. Fabric design repeats are printed first and then matching requirements in a garment leads to wastage of expensive fabrics. Integrated Digital Fabric Printer cum Single Ply Cutter can save material energy and time. Once a pattern layout (marker) is being finalised, fabric is being digitally dyed/printed on only pattern component areas, leaving the dead areas (wastage areas) greige.
The garment industry in India as well as other parts of the world is witnessing the most challenging period it has experienced in recent history. However this is the time for apparel firms to have a close look at their operations. Its time to initiate performance improvement programs without losing any more time.
All round the world cluster initiatives in various forms have been able to address issues of economies of scale, team working and optimisation of resources and helped in uniting the industry and addressing the core issues.
we need to think of extending the cluster concept where people even though having no physical proximity can join in the South Asian Countries as OGTC members have joined in NCR so that value chain can establish triangular production networks that are sought by retail giants .

ENVIRONMENT AND SOCIAL RESPONSIBILITY

  • Aggressively follow concepts of CDM ( Clean Development Mechanism ) across entire value chain and Carbon footprint can be effectively reduced by
  • Life cycle assessment (LCA) to accurately determine the current footprint
  • Identification of hot spots in terms of energy consumption and associated CO2 emissions
  • Usage of renewable energy sources
  • Optimization of energy efficiency and thus reducing CO2 and other GHG’s emissions contributed by the production processes
  • Identification of solutions to neutralize the CO2 emissions that cannot be eliminated by energy saving measures
  • Carbon offsetting, investment in projects that aim at reducing CO2 emissions (e.g. tree planting etc.)

COMBATING TRAFFICKING IN WOMEN AND CHILDREN

A conscious and determined initiative by industry, brands, social organizations and Government can be a desired way forward

COLLECTIVE APPROACH (PRIVATE PUBLIC PARTICIPATION)

Have a proactive dialogue with the Government to identify various policy issues (short term and long term) that need to be addressed in order to stimulate growth of Textile Industry in India. Improve the competitiveness of the industry in India and participate in the schemes provided by the Ministry with regard to restructuring, productivity enhancement, increasing exports etc. Participate in negotiations with other industry associations (domestically and internationally) to solve issues related to trade and investment in textiles

CENTRE AND STATE INITIATIVES

FISCAL

  • Exporters are facing problems in getting payments on time from buyers; the government must look at ways in which they can be provided with credit for a longer period and cheaper rates.
  • Insurance companies, which now find insuring export transactions a high risk area, may be incentivised to stand by exporters and banks Transaction costs because of deficiency in infrastructure and administration must be reimbursed so that there is pressure on the Govt to improve Pakistan and China have increased incentives for their exports. Provide a level playing field Incentivitise Training
  • Adopt scale neutral tax policies
  • Refund of State and Central taxes
  • Provide practical and comprehensive incentives for CSR & CDM

POLICY

India is basically a summer wear garment exporter. For winter wear fabrics Polyester garments play a major part.Indian exports of these garments are at a disadvantage because of import duties imposed in developed countries whereas LCD are able to export duty free. Till this duty is not removed the
Govt of India must give an equal amount of subsidy so that there is a level playing field.

Up-grade and rationlise port infrastructure

  • Adopt scale neutral labour policies
  • Integrate the various segments of the textiles industry like fibre , yarn, fabric, garment etc into one fold
  • Make Provision OF Learners/Trainees in the Textile Industry
  • Legislate Incentive oriented and productivity based wage System.

R.C.Kesar
Conference Chairman
Director OGTC.