Question 4GS3GS3
Examine the major challenges hindering the Indian textile industry from achieving its full potential in the global value chain.
Main Body
Indian textile industry has contributed to about 12% of Indian labour force. Major challenges hindering it from achieving its full potential: (1) Outdated technology and hence low efficiency - E.g. cotton mills & Maharashtra (2) Lack of automation due to labour unions and competitive wages (3) Raw material quality has been poor - E.g. limited long stable cotton (4) Inverted duty structure and hence export of fibre and import of cloth (5) Absence of Free Trade Agreements FTAs with advanced economies (6) Increasing labour wages due to middle-income trap
7Emergence of alternative centres - E.g. Data Vietnam (8) Absence of infrastructural linkages - E.g. clusters (9) High logistics cost - E.g. 40 lakh TAT at ports (13-14%) (10) Uncompetitiveness of synthetic fibre market (11) Fait-assesse venture of Indian companies Way Forward: 1. Cluster-based approach - E.g. PM-MYI FTA 2. Promote synthetic and technical textile growth - E.g. National Labour Mission 3. Improvement in quality & raw material 4. FTA with major economies - E.g. namely UK
— Alase Hrishikesh Rajendra · AIR 61
167 words1 paragraphs
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Topper
Alase Hrishikesh Rajendra
AIR 61
Subject & Paper
GS3GS3
Topic
Manufacturing and Industrial Sector
Manufacturing and Industrial Sector
Textile Industry
Writing Stats
167
Total words
1
Paragraphs