According to Prabhu Dhamodharan, convener of ITF, the free trade agreement between the European Union and Vietnam will intensify competition for India in the European Union. However, the US offers a level-playing field in terms of duty structure for the top three competing countries. “We need to intensify efforts and focus at all levels, including Government, cluster, and firm-level, to grab our share in US market in apparels,” he said.
Apparel manufacturers should go in for capital investments across the value chain with a focus on value addition. This is the right time to as the interest rates are low, there is liquidity, and demand in the market.
The manufacturers should aim for 20 % increase in product value. Further, the Central government has announced production linked incentive scheme. The scheme will help manufacturers diversify and innovate in the man-made fibre sector and build scales.
Indian Apparel sector should use the forthcoming PLI scheme as the stepping stone for much-needed product diversification and innovation in the MMF space and build scale to attract global buyers.
All textile and clothing manufacturing units should look at technology adoption and digital initiatives with Industry 4.0 strategies to achieve global benchmark in terms of productivity and efficiency.
This will enhance the competitiveness of the units.The industry is able to manage the trade with sufficient liquidity due to infusion of funds in the system with Central Govt’s ECLGS scheme. The sector needs to use the opportunity to maintain the financial discipline to work on shorter credit terms across the value chain, he said.source: https://www.thehindu.com/news/cities/Coimbatore/opportunities-high-in-the-us-for-apparel-sector-says-itf/article33482696.ece