DGFT, customs process overhaul, revamp textile PLI scheme, QCO suspension to aid exports: GTRI
GTRI) has suggested suspension of quality control orders (QCO) on polyester and viscose staple fibre for a few years to allow domestic manufacturers to become competitive, expansion of products covered and criteria relaxation in the textile production linked incentive (PLI) scheme, overhaul of Directorate of Foreign Trade (DGFT) and Customs procedures, and addressing monopolistic practices of domestic suppliers, to boost India’s garment exports.
Highlighting complex procedures, import restrictions and domestic vested interests are hindering the export growth of the Indian garment sector, it said that sourcing quality raw fabric, particularly synthetic fabric being the root causes of exporters’ problem.
The report assumes significant in the wake of India losing to other countries even as garment and textile imports rise steadily.
In 2023, China exported $114 billion worth of garments, followed by the EU with $94.4 billion, Vietnam with $81.6 billion, Bangladesh with $43.8 billion, and India with just $14.5 billion.
“This shows India significantly trails behind,” said Ajay Srivastava, co-founder, GTRI.
From 2013 to 2023, Bangladesh’s garment exports grew 69.6%, Vietnam’s 81.6%, but India’s outbound shipments rose 4.6%.
As a result, India's global market share in garment trade has declined from 2015 to 2022. The share of knitted apparel dropped to 3.10% in 2022 from 3.85% in 2015, and the share of non-knitted apparel decreased to 3.7% from 4.6%.
Srivastava said that QCOs have undermined the MMF supply chain’s
