Apparel Industry Management

Apparel Industry Management 3(3+0)

Lesson 45 : FDI in Apparel

The Major Challenges of Indian Textile Industries

1. Advancement from Low cost-low value producer to High value-high volume supplier.
2. Moving up the value chain through Branding, Creating own local brands as well as acquisition of existing, Brands for application to Indian markets
3. Technology up-gradation
4. Seizing the opportunities in Technical Textiles

The government has been taking several steps like development of technology, design and textile parks, besides improving labour conditions, for attracting FDI and optimum utilization of foreign funds. The government allows 100% FDI in the textiles sector under the automatic route and diversify of textiles exports and reduce dependence on the US and European markets, the government is promoting an export regime to cover other areas in the East and South East Asia. The policy envisages not only search for new markets but also attracting FDI.