Foreign collaboration in the Indian garment industry

January 2005 could well see India facing a moment of truth. It is at the date when the world trade quota restrictions will be removed totally. It is assumed that with an increase in exports by 15 percent and more could put India at the top of the big league, just behind China. However this can only materialize if the Indian government pushes ahead quickly with its economic reforms. It goes without saying that the local manufacturers have to become more competitive.

India has tasted global success largely due to its intellectual and manufacturing base which have been strengthened. Apart from that there has been strong support from the technological, infrastructural & IT sector. In the past few years certain regions of the country has developed as specialized in niche products. This has helped international players to source their work from and also to work in India. There are many garment specialized industrial hubs in India and some of them are Jaipur, Delhi, Bangalore Tirupur & Ludhiana. Each of these hubs are self sufficient and have their individual sources for raw material cum labor requirements for specific products.

Of late, due to liberization, FDI has opened up in the apparel & textile industries. Previously the Indian government used to perceive foreign companies as a threat to businesses in India. This entire scenario has changed and now the foreign companies are viewed upon as partners who will help the domestic organizations in their manufacturing capabilities. The government of India has realized the value of manufacturing and the boost the industry can receive with the induction of foreign partners. This can be easily verified in the manner in which different states are promoting integrated textile & apparel parks.