India’s textiles and garments exports to US, EU, and UK are expected to increase by 33 percent this fiscal year, saysUpendra Prasad Singh, Secretary, Union Ministry of Textiles.

Singh asserts, multiple factors will boost India’s exports, with many prominent brands seeking for alternatives to China and India being one of the key options, and that government policies, particularly RoSCTL and RoDTEP, would assist exporters this year.

Textile and clothing exports from India will reach $100 billion, from $33 billion now, says PiyushGoyal, Textile Minister. He urged stakeholders to collectively look at achieving $44 billion exports in 2021-2022 for textiles and apparel, including handicrafts.

Goyaladds, the Production Linked Incentive Scheme for Textiles and the Mega Investments in Textile Parks Scheme are nearing completion. Some states have expressed interest in the park idea, and business should concentrate on economies of scale.

T. Rajkumar, Chairman, Confederation of Indian Textile Business, states, the textiles industry had performed well across the value chain in the previous year.

Welspun India has received USFDA 510(k) approval for its 3 ply surgical masks. Certified by BIS and CE, these masks from Welspun India have received all required certifications to supply to global markets including critical medical uses. Welspun’s 3 ply surgical masks are made with 100 per cent polypropylene and offer 98 per cent protection against bacterial load. Similarly, the company’s WN-95 FFP 2 respiratory masks are CE certified, and can be exported to all global markets including Europe, AsiaPacific, Middle East, and Africa, etc.

The CE marking implies conformity of the goods with European standards of health, safety, and environmental protection, while the US FDA 510K clearance reflects that product adheres to all the required safety and quality standards. Following the latest clearances, both masks can be supplied in the international market. Welspun had earlier also gained CE certification for a Half Face Respirator with Valve for increased COVID-19 protection, which was also tested and verified by an international agency.

Knitwear exporters in Tirupur have urged the Central government to hasten the reimbursement of the Rebate of State and Central Taxes and Levies (ROSCTL) to get rid of issues like COVID-19, non-availability of containers and ships to export the finished products and the economic slowdown. As per a KNN India report, popularly known as embedded taxes like cess on power, tariff on petro products and tax on transport, ROSCTL is offered to the micro, small and medium enterprises in the form of scrips.

Companies can sell these scrips in the market or pawn it as surety in banks and mobilize some funds for meeting their urgent financial commitments, says S Sakthivel, Executive Secretary, Tiruppur Exporters Association (TEA). Raja M Shanmugham, President, TEA adds, impacted by the second COVID-19 wave, the knitwear exports sector in Thirupur is struggling to meet statutory financial commitments every month. Between January 1, 2021 and August 31, 2021, India exported ready garments worth Rs 75,250 crore and the ROSCTL worth Rs 3,750 crore is pending on these exports, adds Shanmugham.

Kolkata-based personal protective equipment (PPE) maker — Mallcom (India) plans to set up a large unit in Bengal to manufacture PPE kits. The company already has manufacturing units in Kolkata, Haridwar and Ahmedabad. These units manufacture both industrial safety gear such as gloves, helmet, suits, shoes as well as medical gear such as masks and disposable protective covers.

Mallcom India plans to set up a facility for protective gears at Ghatakpukur. The facility will be set with an investment of Rs 50 crore. The plant is expected to be commissioned by April 2022, says Ajay Kumar Mall, Managing Director, Mallcom (India). In 2020-21, the company posted consolidated revenue of Rs 320 crore with exports contributing around two-third of the business. It estimates to clock a business of Rs 500 crore over the next couple of years. Mall believes, the changes to the occupational health and safety standards in India will give an impetus to organized players in the domestic PPE market. Mallcom will benefit from this as it complies with the standards both in India and overseas, he adds.

Gokuldas Exports has commenced commercial production at its new manufacturing unit in Tumkur, Karnataka. The unit will add about 4.5 per cent to its current capacity. The company currently operates at peak utilization levels and has a robust order book for the next six months. It plans to spend Rs 120 crore over the next two years to generate incremental revenue worth Rs 450 crore. The company also aims to augment its capacity over the near term, to meet demands and clear production backlog from the first quarter of FY2021-22. As per the annual report, the company anticipates substantial revenue growth in FY2021-22 in line with these trends.

Indian textile exports are at the threshold of a strong growth on the back of a vibrant retail stores and e-commerce demand in key markets like the US and Europe. India’s share in global apparel trade has so far been small. It can now look for more growth opportunities with large brands realigning their supply chain to de-risk from the effect of COVID-19, and looking at a more balanced approach for sourcing.

The Indian government has also extended the Rebate of State and Central Taxes and Levies (RoSCTL) up to FY2023-24, to provide clarity to exporters and push for growth in the sector over a longer-term period. The Production-Linked incentive (PLI) scheme could boost also growth in the industry.

Egypt's clothing trade has improved significantly and exceeds EGP 300 billion annually. Mohamed Abdel Salem, Chairperson, Ready-Made Garments Chamber, Federation of Egyptian Industries attributes this to the decline in imports due to decree No. 42 which obligated importers to register with the General Organization for Export and Import Control (GOEIC). Also, a protocol of cooperation has been signed recently between the Ready-Made Garments Chamber and Gahez Digital Marketing

These factors helped local companies to improve their products and manufacture high-quality clothing to cater to the needs of the market, Salem adds. The Federation of Egyptian Industries (FEI) is one of the country’s largest employers’ associations, with 20 industrial chambers as members, representing over 60,000 industrial enterprises out of which more than 90 per cent belong to the private sector accounting for more than 7 million workers and 20 per cent of the national economy.

The government is likely to approve Commerce and Industry Ministry’s proposal to extend the Indian Footwear Leather and Accessories Development Program (IFLADP) till 2025-26 with Rs 1,700 crore investments. Aimed at boosting leather production, exports, and create new jobs, the program would involve six components — Sustainable Technology and Environmental Promotion with a proposed outlay Rs 500 crore; integrated development of the leather sector with an outlay Rs 500 crore; establishment of institutional facilities with Rs 200 crore; Development of mega leather footwear and accessories cluster with Rs 300 crore; promotion of Indian brands in the leather and footwear sector with Rs 100 crore; and development of design studios with Rs 100 crore.

Under the 'Sustainable Technology and Environmental Promotion' component, the program would provide assistance for setting up a common effluent treatment plant; and under the Integrated Development of the Leather Sector, it would undertake modernization/capacity expansion/ technology up-gradation projects. Similarly the 'Establishment of Institutional Facilities' component, support could be provided for setting up of new infrastructure and upgradation of requisite infra of the existing campuses of Footwear Design and Development Institute (FDDI).

Under the 'Mega Leather Footwear and Accessories Cluster Development' sub-scheme, graded assistance is proposed for land development, social infrastructure, production facilities, and R&D (research and development) support. For brand promotion, support could be provided to promote at least 10 Indian brands in the international market. Further, under the component of 'Development of Design Studios', assistance could be given to develop 10 studios.

At the recent ‘Be Inspired’ webinar series held by the American Chamber, Aroon Hirdaramani, Director, Hirdaramani Group noted that the Sri Lankan apparel sector can achieve $8 billion worth of garment exports by 2025. As per a Daily News report, Hirdaramani highlighted with additional local value addition through ventures such as the fabric park in Eravur, Sri Lanka was well placed to grow, he said. The government’s vaccination drive is helping BOI companies remain operational. Over 90 per cent of the apparel sector workforce has received the first jab with over 70 per cent receiving the second jab.

To create a more stable business environment, the Hirdaramani Group has decided to collaborate with a few high-value partners, He acknowledged that the policymakers were in dialogue with the industry and the significance of the trading scheme was understood. Jeevith Senaratn, Senior Manager, Star Garments Group added, the industry’s export figures are still 10 per cent below the 2019 figures. Hasib Omar, Director, Brandix Clothing Company highlighted that the industry was highly polluting and that would be a future pain point for clients.

Shirendra Lawrence, Executive Director, MAS Holdings added that the new production processes might be causing additional strain on the workers.

Textile traders in Surat are worried as payments of about Rs 4,000 crore from Afghanistan are stuck due to Taliban takeover of the country. Champalal Bothra, General Secretary, Federation of Surat Textile Traders Association says, exporters are not sure when they will get their payments. The Federation of Indian Export Organisations (FIEO) has advised exporters and importers to wait and watch before taking any step.

India mainly exports Punjabi suits and dupattas manufactured in Surat to Afghanistan and Pakistan. Garments worth at least Rs 100 crore are exported every month to Afghanistan via Pakistan or Dubai. Raju Bhatia, a broker working for multiple exporters says, in the textile market, the credit period is up to three months and in goods supplied to Afghanistan via Pakistan or Dubai, the payment is received in three to four months.

However, due to the unrest, payment is several hundred crore of many exporters in stuck. The industry has furthered suffered because over Rs 100 crore worth of textile products exported monthly to Afghanistan has now stopped.

A recent report by market researcher Kantar accuses Indian consumers of being profit oriented and ignoring their environmental commitments. Titled ‘The Asia Sustainability Foundational Study,’ the report surveys 10,000 consumers in nine countries and over 1,000 big Indian cities. It reveals, though 77 per cent of respondents are willing to invest in sustainable companies, their intentions rarely translate into actions. Around 84 per cent focus only on financial gains rather than saving the planet from environmental hazards. The report terms this phenomenon as the ‘value-action gap’.

Consumers abstain from spending on abstract causes

Samit Sinha, Managing Partner, Alchemist Brand Consulting, elaborates on this phenomenon by highlighting the purchases of most Indian consumers are price-driven. They do not prefer spending on distant and abstract causes. They are unlikely to shift their manufacturing strategies unless policies are made to make sustainability affordable. However, Sanjay Sarma, Founder, SSARMA Consults, a boutique branding and communications advisory believes a law making sustainability mandatory would invite more resistance from brands. To make sustainability more affordable, brands needs to change the way they look at both. They also need to invite more conversations on this topic, adds Sarma.

Incorporating sustainability into brand consciousness

Though fashion and lifestyle brands start their sustainability journey with good intent, they eventually compromise on their values as economic considerations and market forces take precedence, adds Sarma

Brands therefore, need to change their thinking patterns and incorporate sustainability into their consciousness. The onus to create awareness and promote sustainability lies on them, adds Shishir Goenka, a Mumbai-based exporter of organic cotton clothing, who launched a sustainable brand called Do U Speak Green? for the domestic market in 2009. However, the brand didn’t survive for long as the market was not yet ready for sustainable clothing. Hence, large fashion brands need to up their sustainability quotient and increase contributions towards climate-control.