Do you know??
Despite being the second largest MMF (Man Made Fibre) producer, India has only 2% market share in MMF Exports
Whereas China, Bangladesh & Vietnam have 38%, 9% and 6% share respectively
Let's understand the industry structure, foreign policy, PLI Scheme etc
๐งต๐งต๐งต
Despite being the second largest MMF (Man Made Fibre) producer, India has only 2% market share in MMF Exports
Whereas China, Bangladesh & Vietnam have 38%, 9% and 6% share respectively
Let's understand the industry structure, foreign policy, PLI Scheme etc
๐งต๐งต๐งต
First let's understand the basics about different fibres
๐๐๐ญ๐ฎ๐ซ๐๐ฅ ๐ ๐ข๐๐ซ๐- These fibres are sourced from nature, like plants and animals, these are mainly used in clothing. Example- cotton, wool, silk etc
๐๐๐ญ๐ฎ๐ซ๐๐ฅ ๐ ๐ข๐๐ซ๐- These fibres are sourced from nature, like plants and animals, these are mainly used in clothing. Example- cotton, wool, silk etc
๐๐๐
- It has two types ๐๐ฒ๐ง๐ญ๐ก๐๐ญ๐ข๐ and ๐๐๐ฅ๐ฅ๐ฎ๐ฅ๐จ๐ฌ๐ข๐
Synthetic fibres are made of crude oil while cellulosic fibres are made of wood pulp
Examples:
synthetic- polyester, acrylic and polypropylene
Cellulosic- viscose and modal
Synthetic fibres are made of crude oil while cellulosic fibres are made of wood pulp
Examples:
synthetic- polyester, acrylic and polypropylene
Cellulosic- viscose and modal
Now letโs understand about the value chain of textile industry
First of all raw material for eg. Cotton are extracted from plants or animals, then cleaned & sorted to create yarns via spinning process.
These yarns are turned into a fabric by knitting or weaving them into a loom
First of all raw material for eg. Cotton are extracted from plants or animals, then cleaned & sorted to create yarns via spinning process.
These yarns are turned into a fabric by knitting or weaving them into a loom
After that, the fabric is dyed or printed in desired colors or shades then the fabric is cut and sewed to create outfits
Now letโs understand the export growth opportunity for India
We can see China is dominating MMF export market and Bangladesh and Vietnam are also well ahead of India
Though China was loosing its market share but majority of the same was taken away by Vietnam & Bangladesh
We can see China is dominating MMF export market and Bangladesh and Vietnam are also well ahead of India
Though China was loosing its market share but majority of the same was taken away by Vietnam & Bangladesh
It is evident, to gain the global export market share, countries should be cost competitive along with quality standards.
Here is the data to understand that India is having an edge over other countries w.r.t. labour cost and water cost
Here is the data to understand that India is having an edge over other countries w.r.t. labour cost and water cost
India has advantage in mfg. cost but it has to pay duties on exports which makes India less competitive in global MMF exports
To combat the same, India has taken steps towards signing FTA with developed nations which resulted into signing FTAs with Australia & UAE recently
To combat the same, India has taken steps towards signing FTA with developed nations which resulted into signing FTAs with Australia & UAE recently
Talks with UK is in advance mode and FTA is expected to be signed soon.
Additionally, India is in talks with Israel, Canada, EU and GCC Nations (Middle East Market) to sign FTA.
Additionally, India is in talks with Israel, Canada, EU and GCC Nations (Middle East Market) to sign FTA.
As more global markets are opening up for India due to favorable policy framework, MMF & technical textile industry is at cusp of growth and needs more capacity to address the demand.
Indian Government has announced PLI Scheme to tap this opportunity.
Indian Government has announced PLI Scheme to tap this opportunity.
Government received 67 applications out of which 61 companies are selected in two different categories.
Category 1 covers the minimum investment of 300 Cr and minimum turnover of 600 Cr while category 2 covers the minimum investment of 100 Cr and minimum turnover of 200 Cr.
Category 1 covers the minimum investment of 300 Cr and minimum turnover of 600 Cr while category 2 covers the minimum investment of 100 Cr and minimum turnover of 200 Cr.
This is likely to bring 19k Cr investment and projected to generate 1.85 lakh Cr turnover.
Government is going to establish 7 mega textile parks in the next 3 years over 1,000 acre land to boost production and support export competitiveness.
Government is going to establish 7 mega textile parks in the next 3 years over 1,000 acre land to boost production and support export competitiveness.
๐๐๐๐๐๐๐ ๐๐ ๐๐๐๐๐๐ ๐๐๐ ๐๐๐๐๐๐๐๐๐ ๐๐๐๐๐๐ ๐๐๐๐๐๐๐๐ ๐๐๐๐๐๐๐๐๐
@AnishA_Moonka @ishmohit1 @itsTarH @nid_rockz @InvestRepeat @StocktwitsIndia @SiddarthBhamre @abhymurarka @AvadhMaheshwar2
@AnishA_Moonka @ishmohit1 @itsTarH @nid_rockz @InvestRepeat @StocktwitsIndia @SiddarthBhamre @abhymurarka @AvadhMaheshwar2
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