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The textile industry in a sweet spot to grab the opportunity to become manufacturing hub thrown open by the geopolitical developments.
Addressing a gathering at the centenary year celebration of the Cotton Association of India on Tuesday, Piyush Goyal, Minister of Textiles, Commerce and Industry, said the cotton textile industry contributed significantly to achieve merchandise export target of $400 billion last year.
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Goyal said while addressing a CII's conference on making India a global hub in renewable energyIndian textile industry accounts for about 10 per cent of overall merchandise exports. India produces one-fourth of global production and cotton trade employs 65 lakh people directly and indirectly.
New pacts
New free trade agreements signed by India with UAE, Australia and the new ones under discussions will help boost exports and open up immense opportunity for textile industry.
While the prospects of the textile industry look rosy, he said there are many challenges in the cotton trade and the foremost being the yield. While the yield in India at 460 kg per hectares, it is at about 1,850 kg per hectares in China, Brazil and Turkey.
“I would urge the textile industry to collaborate with foreign partners to help farmers increase production,” he said. Globally, farmers are working on artificial intelligence-based technology to improve productivity and spraying operation since cotton crop is more sensitive to pest attacks, said Goyal.
The government on its part is working along with agriculture ministry to introduce innovative solutions and some of the initiative under consideration is to promote high density planting, drip irrigation, rainwater harvesting, inter-cropping.
The industry has many challenges such as building a common brand, developing common rules, common contracts, building a system of traceability of cotton using blockchain technology to improve the entire cotton ecosystem, he said.
Focus area
The textile and apparel industry needs to focus on sustainability. The industry can tie-up with the International Cotton Researchers Association for doing the research. The industry should also strengthen arbitration and consolation process. We have International Cotton Association that provides arbitration in UK, but it will be a costly affair for Indian textile industry. The textile industry should set up something like that in India. It should also modernise the ginning and pressing process. Unless the cotton production is increasing, India will lose its self-sufficiency tag given the pace at which the demand is growing.
Indian associations can develop a common contract format for the trade.
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