To help manufacturers of low value products to reduce cost of production, the government should promote large scale apparel manufacturing by incentivising medium-sized firms to scale up to large-sized, the Indian Texpreneurs Federation (ITF) has said. In FY 2018-19, twenty per cent of the items in high volume products basket were priced below $3 per apparel.
Based on an analysis of 30 high volume HS codes, the Coimbatore-based organisation said 43 per cent of items in the high volume apparel export basket were priced below $6 per apparel in fiscal 2018-19.
“The single largest exported item was priced at $2.5 per apparel,” ITF said, and added that the industry should shift its focus towards high value products, including blended, because “margins are very low in the currently exported items due to increased manufacturing costs.”
In view of a substantial quantity of low value items in the country’s garment export, ITF appealed to the government to create an eco-system that will push the industry towards high value products. It has urged the government to incentivise medium-sized firms to scale up to large scale apparel manufacturing. (RKS)
Source:Fibre2Fashion News Desk – India