‘Indian apparel industry weak in synthetic fabrics’

 The developed countries are buying clothing made up of mixed synthetics and the Indian apparel industry is weak on that front, leading to a decline in global exports share, a report said on Tuesday.

The Global Trade Research Initiative (GTRI) in a report said that due to weak synthetics, India’s apparel industry is a horse running with one leg tied.

“The results are low exports, low wages, and low investments in the sector,” it said, adding that synthetics have overtaken cotton and become favourite of the fashion industry.

“Around 70 per cent of clothing bought by developed countries is made of mixed synthetics. Their share in Indian exports is less than 40 per cent and this is the key reason for India’s weak garment exports, the report said.

It added that today, most formal, sports and fashion wear uses synthetic fabrics. They are durable, do not fade, and can have any colour besides easy blending with wool, cotton, or rubber allows experimentation.

Explaining it further, the report said that globally cotton dominates spring and summer sales seasons, while synthetics and blends dominate autumn and winter seasons.

Indian units run six months a year to produce cotton apparel. In the remaining six months, most units are shut or run at a low capacity as they do not have orders for synthetics/ winter wear and most workers go home, it added.

“Also, a factory that runs only six months a year still has to pay the full year’s fixed costs’ rent, salary for minimal staff, interest on loans, etc. This makes anything made in the factory expensive. Absence from synthetics also affects workers’ wages,” the report said.

It also said that since India is mainly an informal cotton-wear exporting country, wages remain at minimal levels.

Entry into synthetics would make factories run full year, and increase wages manifold.

“With less than 40 per cent of Indian textile exports being synthetic, despite developed countries’ preference for such materials, India misses out on a substantial market segment. This also means failure of most Indian firms to connect to fast-moving textiles global value chains,” it said.

Further, the report said that India’s textile value chain, which includes yarn making, weaving, fabric processing, and apparel making, is weakened by its underdeveloped weaving and processing sectors.