LOCAL MANUFACTURING : CHALLENGES & OPPORTUNITIES

About India India is known for its highly skilled labor force which speaks English and is well informed about western culture and society. Combined with including multinationals have transferred parts of their activities to India. Being centrally located in South Asia, India enjoys an advantageous position for doing trade with other South Asian countries, Australia and the countries of Africa, the Middle East and the Far East. India has a massive workforce, an emerging supply base, and access to natural resources needed in production The country could become a viable manufacturing alternative to China in industries ranging from apparel to auto components and might even dominate some skill-intensive manufacturing sectors.. The huge domestic market and the pool of well-educated young people.

About India continued….. Yarn, Fiber and Processed fabrics – 14 % of Word Production of Textile Fibers and yarn (Largest Producer of Jute, Second Largest Producer of cotton and Silk, and Largest in Cellulosic Fiber) Highest Loom Capacity (Including Hand looms) - 63% of the world market Share Indian textile industry accounts for about 24% of the world’s spindle capacity and 8% of global rotor capacity The domestic textile and apparel industry in India is estimated to reach US$ 223 billion by 2021 from US$ 108 billion now. Indian Textile industry – Contributing 5% to India’s GDP & 14% to overall index of industrial production (IIP)

Opportunities in Local Manufacturing Government of India is building a pentagon of industrial corridors across the country to provide developed land and quality infrastructure for industrial townships.

Oppurtunities & Strengths : India has already marked its presence as one of the fastest growing economies of the world Increased Penetration of Organized retail sector Strong consumerism in the domestic market. Strong technical and engineering capabilities backed by top-notch scientific and technical institutes. Proactive government continued thrust on reforms E-Commerce, expanding steadily, Increasing Choice of products at Lower rates Growing preference for ready-to-wear apparels Intensifying urbanization to spur demand

Challenges in Local Manufacturing Intense competition from industry frontrunners, constantly evolving fashion trends and price sensitivity of shoppers Increasing labor shortages, rising prices of raw materials Lack of innovation and excessive reliance on cotton or cotton based products (whereas globally polyester has already surpassed cotton consumption in just 50 years of its invention and patenting). Quality…Quality…Quality Aversion toward smaller quantities-runs. Manufacturing set ups are not geared for quick turn around programs as well as smaller runs.

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