37. indian readymade garment industry zainab shafi

indian readymade garment industry

1. Indian Readymade Garment Industry - Past, Present and Future Presented by Zainab Shafi 2 nd year B.Sc ( Hons ) in TCFS Roll No. - 46

2. Introduction The Indian Readymade Garment sector is the second largest provider of employment after agriculture. Thus, the growth and all round development of this industry has a direct bearing on the improvement of India's economy The Indian Readymade Garment industry has made a major contribution to the national economy in terms of net foreign exchange earnings and contribution to the GDP . Readymade Garment exports from India will touch US$ 185 billion by the year 2024-25 . Indian Readymade Garment provides direct employment to over 45 million people A huge Garment industry growing at the rate of 30% per annum. Distributed equally across all major cities of India. It has an output of about 7% of total industrial production and market capitalization is at a rate of 20% per annum.

3. Historical Background 19th century saw the emergence of ready-made garment industry in the world, Post World War-I, the rapid rise of the sector began. The year 1920 is considered to be the sunrise year for this sector. During 1960s & 1970s, Indians emigrants acted as import agents opening up huge export market for India. Need mass production, in the absence of large corporates led to the emergence of a fragmented & small units, a trend that continues till today( Small and Medium scale industry). The annual plan for 2007-08 formulated by Indian government to promote the garment sector, includes schemes for attracting foreign direct investments, brand promotion through public- private partnership (PPP) for global acceptance of Indian brands, trade centers for facilitating business and image building, fashion hubs as a stable marketplace for Indian fashion, common compliance code for creating apparel standards for the benefit of buyers, and training centers for developing human resources. The total textile exports during 2012-13 was valued at Rs 137619.44 crore as against Rs 129829.30 crore during the corresponding period of financial year 2011-12, registering an increase of 6.00 percent in rupee terms. Export of garment product from I ndia has increased steadily over the last few years, particularly after 2004 when textile exports quota was discontinued.

4. Growth of Indian Readymade Garment Industry Today the textile and garments industry plays a significant role in the economy. It is one of the largest and the most important sectors of Indian economy in terms of output, foreign exchange earnings and employment. The sector employs 45 million persons. Of this, textile segment alone accounts for 29 million and the clothing industry accounts for the remaining 1 6 million people. It contributes nearly 20 per cent to the country’s total export earnings . Indian garment industry is amongst the top players in terms of export (Currently in the 2nd Position) m ain competitors are Bangladesh & China. Bulk of India’s exports go to the US, Canada and the European Union. Indian exports have become competitive, thanks partly to the government’s restrictions ( Multi F ibre Agreement MLA ) on exports of cotton and cotton yarn which lowered the raw material prices

5. Future Expansion of Indian Readymade Garment Industry Emerging retail industry and malls. Elimination of quota restriction leads to greater market. Growth rate of domestic textile industry. Shifting towards Indian branded readymade garment. Product development and diversification . Indian Readymade Garment Industry share in the nation’s GDP is 6% and 13% in exports. Taking innovative measures in partnership with International industry and learning from experience, India could aspire to achieve 20% growth in exports over the next decade. In any case the achievement of 15% growth rate in exports should be feasible. In the domestic market, sustaining an annual growth rate of 12% should also not be difficult. This implies that with a 12% CAGR in domestic sales the industry should reach a production level of US$ 350 billion by 2024-25 from the current level of about US$ 100 billion for the domestic market.

6. Projections for Domestic Readymade Garment Industry Year Domestic Industry($ Billion) 2016 82.6 2017 88.4 2018 94.5 2019 101.2 2020 108.2 2021 115.8 2022 123.9 2023 132.6

7. Segments of Indian Readymade Garment Industry Category Range Some Brands Formal Wear Suits, Trouser, Shirts, Jackets, Blazers, Neckties Allen Solly , Arrow, Colour Plus, Louis Philippe, Peter England, Park Avenue, Van Heusen Casual Wear Shirts, Trousers, Jeans, Tee Shirts, Shorts Lee, Parx , Weekender, Wear-house, Benetton Kids Wear Shirts, Frocks, Jeans, Shirts, Shorts Ruf ‘n’ Tuf , Lee, Weekender, Wear-house Ladies Wear Shirts, Tops, Salwar Kameez , Sarees Biba , W , Melange , Global Desi Under Garment Knitwear Vest , Briefs, etc Jockey, Byford, Tantex

8. Leading Readymade Garment Industry In India

9. Prospects of Indian Readymade Garment Industry Size of the Industry has trade growing at the rate of 30% per annum Geographical Distribution is all major cities in India Output per annum is 7% share of industrial production Market Capitalization Growing at 20% rate. Availability of low cost and skilled manpower provides competitive advantage to industry. Availability of large varieties of cotton fibre and has a fast growing synthetic fibre industry. India is one of the largest exporters of yarn in international market. Growing economy and potential domestic and international market. Industry has large and diversified segments that provide a wide variety of products .

10. MARKETING STRATEGIES OF INDIAN READYMADE GARMENT INDUSTRY

11. PROBLEMS FACED BY INDIAN READYMADE GARMENT INDUSTRY Exposure to Toxic Chemicals High Noise Levels Poor Working Conditions Working Conditions Can Cause Bad Ergonomics Cotton Dust Can Cause Breathing Problems Waste in the Industry Sumangali System in the South of the Country and other slave like practices bonded and child labour . Prevalence of factories operating in the informal sector: lack of legally binding employer relationships, no access to legal protection for workers, lack of Trade Union protection, collective bargaining, and grievance mechanisms. No payment of minimum/ living wage, and other employment related benefits Discrimination: Caste and Gender based .

12. Major Exported Country

13. Government Initiative to Indian Readymade Garment Industry The Government of India has started promotion of its ‘India Handloom’ initiative on social media like Facebook , Twitter and Instagram with a view to connect with customers, especially youth, in order to promote high quality handloom products as India Handloom Brand. The Ministry of Textiles launched Technology Mission on Technical Textiles (TMTT) , The objective of TMTT is to promote technical textiles by helping to develop world class testing facilities at eight Centres of Excellence across India, promoting indigenous development of prototypes, providing support for domestic and export market development and encouraging contract research. Skill development under Integrated Skill Development Scheme will provided training to 1.5 Million people to coverall sub-sectors of textiles such as Textile and Apparel, Handicrafts, Handlooms, Jute and Sericulture. Concept of Zero defect and Zero effect approach . Under the Make in India initiative, investment opportunities for foreign companies and entrepreneurs are available across the entire value chain of garments , and retail brands. Already several foreign companies have invested in India. These include textile machinery manufacturers Rieter and Trutzschler ; and apparel retailers like Zara and Mango (both from Spain), Promod (France), Benetton (Italy), etc . The government has also proposed to extend 24/7 customs clearance facility at 13 airports and 14 sea ports resulting in faster clearance of import and export cargo.

14. Conclusion Customers prefer branded readymade garments . Exporting units maintaining quality and also to have greater control over the production process, the portion of work subcontracted gradually declines. The profitability trends, working of garment units, dependence of garments industries on imports are some of the areas which have also been touched upon Differences in costs between exported and those produced for the domestic markets do not always match with differences in technology and skill of workers between the two segments, nevertheless large gaps exist in the quality of the fabric, designs and colours , processes like dyeing, printing, compacting and so on that involves higher costs. India enjoys good reputation internationally for its engineering skills. Hence, a major attraction for European and Japanese textile and clothing equipment manufacturers to setup shop in India THANK YOU, Any questions?