Acute competition coupled with textile manufacturers worldwide adopting the latest technology, the traditional way of doing business will have to give to innovations. India cannot remain isolated especially when obsolete technology threatens to wipe out the advantage of its skilled manpower base. In fact, the last few of years have witnessed exports slow down to 40 per cent.
The powerloom sector, the major fabric supplier to garment exporters, lags in modernisation and hence in quality. Yarn breakages have made Indian denim 30-40 per cent costlier than that available internationally.
All this even as January 1, 2005 inches closer when all quota restraints on garment exports will be abolished and the Indian market thrown open to imports.
This will usher in free competition where only the fittest will survive. In 2005, with non-tariff barriers in place, trade blocs creating new divisions and, importers emphasising on quality, price and service, India could even lose its existing markets.