|
Previous
Part - VII
Industry Growth Drivers
Decline in raw cotton prices could lead to more exports of yarn which in turn could change the dynamics of global demand and supply pattern. On the specific product front, readymade garments, furnishings and bed linens are the growing segments for the cotton textile industry. The per capita consumption of textiles is also estimated to go up with growing urbanization, impact of the international mass media, activity-oriented dress habits and with apparel life cycles shortening which necessitates further requirements.
In the post-liberalization era, domestic consumption of synthetics, mainly polyester, has been consistently growing. Before the liberalization, exorbitant duty structure kept demand suppressed. High domestic prices made polyester, which is poor man's fabric worldwide, unaffordable for Indian masses. The government's policy kept polyester imports under check and inadvertently caused greater damage by reducing exportable surplus of cotton. In the post-liberalization era, with the gradual fall in excise as well as import duties, polyester became cheaper and affordable to the common man with a resultant boost in demand. The latent potential of demand growth is highest in India. Cotton has been the primary textile fiber consumed in India. Reduction in prices of synthetic (cut in duties) led to a shift in demand from cotton to synthetics. The major demand drivers of the industry include: -
Rise in population
Disposable income
Changes in fashion and styles which fuel demand for fabrics
Growing urbanization
Impact of the international mass media
Activity-oriented dress habits and with apparel life cycles shortening which necessitates further requirements
Challenges
There are several challenges confronting the textile industry. Some of these are listed on below: -
Next
* Contributed by -
Siddharth Mohan Patnaik, B.Tech. (Electronics),
Ravulpathi Janaki, B.Tech. (Mechanical),
II Year, IIM Lucknow.
|
 |
|
|
