The report, Eternal Hope to Reality: Sustained Global Competitiveness for the Indian Textile and Apparel Industry, highlights the immense gap between the industry's export levels of about $20 billion and the industry's vision of $55 billion.
'Dramatic growth cannot come through concentrating on volume alone,' said Devangshu Dutta, Third Eyesight chief executive officer. 'Even if the industry wishes to increase its volume of trade, ports are operating at 91 to 92 percent of capacity utilization. This sort of growth of exports is only possible through focusing on value addition.'
| Dutta |
The report highlights the fact that India compares poorly with other countries on the value captured per employee. For instance, if the value of export generated per employee in the Indian textile and clothing industry were as much as Turkey, India's exports would be close to China's exports of $161 billion, the company said.
The report also indicates that India's exports are still weighted too heavily in favor of raw materials and intermediate products, rather than finished products.
'This is a major concern if one looks at the long-term competitiveness and value-capturing capability of the industry,' Third Eyesight said. 'Apparel exports account for only 41 percent of India's textile exports in 2007-2008.'
India is neither the cheapest producing country nor the quickest in terms of delivery, the report said, but it already provides buyers with value in terms of product development and design.
'This is the winning formula that needs much more focus,' the report added. 'Design, merchandising and product development capabilities can enable Indian companies to become strategic suppliers to global industry. India's domestic industry, and its skill at understanding market needs, creating and merchandising product, can also play a valuable role in the industry's growth in the global area.'
'By creating an ecosystem focused on design and product development, India can create and capture the billions of dollars worth of value that is being lost to other countries,' Dutta said.
For more information, visit www.3isite.com/.
