The global community of International Trade is in the middle or crossroads of “What is going to take place NOW, and where it will be in the future?” This dilemma has been, and is being discussed by all the great economist of the world, and many have statistical viewpoints or projections in 180 degree opposite directions of each other.
“What came first the Chicken or the Egg?”
Most of these experts look at a MACRO factual facts, look at history, and come up with their points of view.
Let us discuss the domestic and international dilemma of the Textile/Apparel Industry of India, and the existing domestic market as well as suppliers of product to the international market place.
1. How many of these economists have started from the lowest job at the factory level, owned their own textile/apparel entity, and now are considered expert economists in academia voicing their opinion? I would say a very few, if any.
2. How many of these sages of projecting textile/apparel economists, have actually lived in foreign markets, sold, and marketed their products in foreign markets? I think very few.
Therefore, a “HANDS ON”, relationship with the Textile/Apparel Industry is not “HANDS ON”, but from a distance, and rely on gathering information from I believe very knowledgeable leaders of the industry, but putting their own evaluations on what they are hearing, but not actually in the day to day issues that make decisions in this existing economy very difficult.
India is becoming the most populated country in the world, now only second to China, and estimated to pass China in the near future. I am “observing many times since I have visited, and did business in India”, not from actual living in India, as I have lived in Korea, Taiwan, China, Mexico, for many years. India is unusual, as it has a very high tech capacity work force, with a well educated population that equals all first class modern countries, but also has a very large, and growing uneducated, and poor population.
This poor educated population in today’s world does have access to view, higher standards of living in the world via the communications of world technology.
Therefore, they will have the desire to better their lives, and the first entrance to better themselves is by working and gaining skills, that are offered in the manufacturing of the Textile/Apparel Industries, though they may not have any education they can perform very excellent skills.
I can assure the Indian Textile/Apparel Industry that two things will be constant for many, many years to come:
1. There will be many available workers at competitive wages to work in the Textile/Apparel Industry at global world wages.
2. As these workers start to better themselves there will be many new levels of retail to sell them apparel made in India, and be a growing market of an ever increasing purchasing power.
The conclusion of India NOT having to import Textile/Apparel to feed its growing population is a given, and for the long haul, not be like the USA having to import over 50% of it is Textile and Apparel.
India has competitive labour which makes up about 25-30% of the cost of the finished product; therefore since LOW COST LABOUR is essential in the production of apparel, the international market place should have a growing future for India. The many global variables that come into play, like, currency valuation, demand of specific products, Government restrictions, both by India, and other countries all come into the growth of exportation of India Textile/Apparel products.
Investment is required for growth, and the recent economy makes it difficult for export expansion, so that the organizations that work with governmental agencies work on lending institutions to work on feasible financing programmes is a must. The Governments want, and have the responsibility to increase jobs for their population; the Apparel Industry can put more people to work, with less training, and capital needs, than any other industry in the world.
Agriculture only needs people seasonally, so by far the Apparel Industry will allow Governments to raise a standard of living and allow their people to grow into higher technology jobs. This is true in Democratic, Socialistic, Communistic, and any other form of political Government that exists in our global community.
So! To answer the DILEMMA, I am stating that India is set in the marketplace to grow domestically and internationally in the manufacturing of Textile/Apparel.
The basics are already in place as discussed, but it will take “HANDS ON” active thinking to be a survivor to reap the benefits of being a Textile/Apparel manufacturer located in India.
The more the Textile/Apparel Industry in India pull together, the faster the rewards will become true.
