Page 45 - Banking Finance July 2017

ARTICLE

frastructure relating to transport, communication, bank- Y Indian labour laws should be made favorable to the
ing, port congestion, and custom clearance pose a chal- trades and there is an urgent need for labour reforms
lenge for the industry and breaks the growth of this in India
mission.
Y Indian powerloom sector, which enables value-addition
b) Lack of proper talent and human resource is a big prob- is a highly unorganized industry and needs major
lem faced by the entire sector today, which is a big upgradation.
obstacle for the growth path of any start-up. Y Investments should be adequate to cope with the qual-

c) Complexity of the market together with stiff competi- ity and quantity to cater to the export market.
tion is a big challenge for the textile start-up entrepre- Y "Mission based Research" should be carried out as a
neurs. collaborative endeavour between the Ministry of Tex-

d) Technology obsolescence despite measures of Govern- tiles and the Department of Science and Technology for
ment such as TUFS. Industry specific problem solving

e) Exports of garments don't have large profit margins;
therefore investment is low which hinders the growth Conclusion
of the textile start-ups. Indian textile industry occupies a unique position in the
Indian economy as well as in the international textile
Recommendations for further improve- economy with several changes taking place over the last few
decades. The future of the Indian Textile Industry looks prom-
ment in textile industry
ising with its significant presence in the Indian Economy, the
The following are the few suggestions which will give food rising number of textile start-ups and with the new Govern-
for thought for all the new start up entrepreneurs in the ment in India having strong commitments to uplift the com-
Indian Textile industry: plete value chain.
Y Labour force should give high productivity as compared
to other competing countries to stay in the competi- Its contribution to the Indian economy is manifested in
tion. terms of its contribution to the industrial production, em-
Y Technical textiles sector is still in its infancy and tech- ployment generation and foreign exchange earnings. The
nology obsolescence should be taken care of industry also contributes significantly to the world produc-
Y Trade pact memberships should be strengthened more tion of textile fibres and yarns including jute. Things have
changed and people are improving their life in many differ-
to get access to the other major markets
ent ways. India is a place to eye on and certainly the textile
startups will have its share in the growth story.

References

(Textile & apparel, January 2016)
(Vision , Strategy & Action Plan For Indian Textile & Ap-
parel Sector, July 2015)

(Cotton Statistics & News Edited , 2015-16)
(Current Scenario Of Indian Textile Machinery Market and
Future Prospects)
www.makeinindia.com/sector/textiles-and-garments
http://indiainbusiness.nic.in/newdesign/
index.php?param=industryservices_landing/351/1

BANKING FINANCE | JULY | 2017 | 45

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