Importance of “Vocal for Local” in Indian Textile Industry (Photo No 1)
Depending on its own specialty many Indian products have already achieved their recognition in-house as well as globally since our heritage, however enough efforts have not been taken to sustain their importance during the next generation. These products can be taken on our agenda of “Vocal for Local” on priority basis involving Digital tools to promote and make user-friendly to next generation manufacturers as well as purchasers.
Scope of “Vocal for Local” to make Indian Textile Engineering Industry- ATMA NIRBHAR
India’s textile machinery trade with the world was US$ 4857.91 million (12.31%) in 2018, out of which imports contributed to 83% i.e. US$ 4032 million; while Exports were only 17.29 % i.e. US$ 839.78 million. China, Japan, Germany, Singapore and Italy were the top five sourcing markets, while Bangladesh, Germany, Turkey, Vietnam and the Netherlands, and were top Export markets for India. China supplied worth US$ 1445.77 million (36 % of total India’s Imports) Textile Machinery to India.
At the same time India’s production of Textile Machines, Spares and Accessories is Rs 6,865 Crores, fulfilling only 46.61% of Home –consumption to a tune of Rs 3,200 Crores against the demand of Rs 13,004 Crores which is 52.71%. The involvement of Entrepreneurship states that about 40-45% are manufacturers and the rest are Traders/gents/Dealers.
The above statistics calls for pursuing progressively for reduction our overall import dependence, especially from China, to become ATMANIRBHAR. In such an exercise, imports from China no doubt require close scrutiny, considering their size in our import profile and even higher share of the bilateral trade deficit in our total merchandise trade imbalance.
After interacting with few Entrepreneurs involved in the business of Chinese products, following findings are noted:-
- Machines & spare parts manufactured by Indians at par/more effective in durability /quality than Chinese products used in India, but at higher cost.[Govt. of India should support through ‘Make-in-India’ initiative to bring down the manufacturing cost.]
- Chines machines & spare parts used by Indian machinery manufacturers; [Govt. of India should encourage Local manufacturer to indigenously manufacture under ‘Make-in-India’ initiative and convey message that we not only want to make products for India but make them for the world indicating that we are also aiming at competitive manufacturing and not import substitution at any cost.]
- Chinese machines & spare parts used by Indian Textile Mills [If the government promotes technology among Indian manufacturers by offering a TUF scheme for TEI, there may not be any need for TUF for the textile industry as machinery and parts will be available at 40-60% lower cost
- Chinese machines & spare parts exported by Indian Traders/Agents to other countries from India [Govt. of India to support through Export incentives for Indian Products]
- Machines & spare parts of non-Chinese companies manufactured in China and sold in India [effort to invite such foreign producers to locate their manufacturing in India by offering them attractive investment incentives, time bound tariff protection, ensuring that progressively they will also export.]
A detailed study on following aspects will help in execution of the concept ‘Vocal for Local’ at Grass –Root level through ATMANIRBHAR BHARAT initiative.
- Which machines and Spares/Accessories heavily depend on imports right now and cannot immediately scale up production domestically?
- Which machines and Spares/Accessories partially depend on imports to make their finished products?
- Are there any machines, spares and accessories that are already self-reliant, have minimal dependence on imports or have the capacity to immediately scale up production here?
- What are the issues with scaling up production in import dependent sectors?
- What policy measure does industry need for greater local production?
We are aware that European Technologies even being expensive are preferred globally due to their sustainability and Artificial Intelligence (AI) systems and being user-friendly and environment friendly. Inception of these machines, especially pre-owned has taken place in huge numbers in India under TUF scheme. China offered workshop facilities for many European machinery manufacturers and taking this opportunity, developed very cost effective machines with European technology standards under reverse engineering techniques and was able to target India as their major export market. It’s a matter of time when Indian Entrepreneurs realized and as learnt from them, that these machines could not give sustainable performance due to lack of good quality metallurgical aspects, while manufacturing in order to deliver a low-cost Product.
Following suggestions may be considered for preparing Indian TEI to be ATMANIRBHAR and promote through ‘Vocal for Local’ concept, taking it further ‘Focus on Local for World’.