Indian textile and apparel industry would have to work hard and address issues on timely delivery so as to reach four-fold increase in size to $200 billion by 2025 as recently claimed by a survey, industry experts said.
To attain the projected figure, phenomenal impetus and radical transformation in the sector and lots of hard work is needed, experts said. More over productivity of the work force of the industry would have to be increased.
According to a survey by management consultancy firm Wazir, Indian apparel market will grow over four-fold to attain a staggering size of $200 billion by 2025 with the country becoming the fastest growing market along with China.
TT Ltd Managing Director Sanjay K Jain said the projected figure means a 20% nominal growth, considering 8% inflation and 12% real growth.
"Now to suddenly grow at such a high rate in a matured industry would need phenomenal impetus and radical transformation which is not going to be easy despite all the projections of the economy," Jain told PTI.
Hong Kong-based VF Corporation Senior Vice President Veit Geise said "quite lot of hard work is needed" to be among the top exporters.
"India has the potential and skills to set to grow its textiles and apparels and apparels export exponentially. The next China can be India only. However, India does not appear to be very competitive for sourcing managers," said Geise last week during a seminar organised by the industry body CII.
Li & Fung Executive Vice-President Deepika Rana said even productivity rate of countries as Bangladesh is higher than India.
According Vardhman Yarns and Threads Ltd Managing Director D L Sharma, Indian wage structure is near to the fair wage rates and competitors as Bangladesh and Vietnam has minimum wages.
"Despite that productivity level of Bangladesh and Vietnam is better than India," he said, adding that it was a disturbing factor. China has the highest productivity levels.
On problem of non-delivery on time to the sourcing firms, Jain said:" "Yes its true. However to just blame the vendor management for it would be unfair. We need to understand the dynamics and environment in which they work to appreciate the whole situation. The uncertainty of labour and the culture of the same is a very big impediment to meeting deadlines."
Rana said low-cost advantage of India would not work any more in the global market and it would have to improve processing speed,response of vendors, flexibility, etc.
"New frontiers in this sector is not about low cost country but process optimisation, quick response, flexibility, trust certification and self audit," she had said.
In 2012, the size of the Indian apparel market was $45 billion. India and China will be the fastest growing markets, growing in double digits and would become the biggest consumer market with a mammoth share of 27%, Wazir's report had said.