Speaking with Salil Chawla, Director of DFU Publications, Rajkumar Agarwal, MD, SVG Fashions Ltd on the sidelines of the Intimasia 2025 show.
We are a vertically integrated manufacturer. From producing polyester yarn, we move through the entire value chain—knitting, weaving, dyeing, printing, and even garment manufacturing.
The key question today is: with man-made fibers (MMF) becoming a global standard and cotton now in the minority, where does India stand? A speaker earlier pointed out that 87% of China's garments are MMF-based, while India still lags significantly. So, how do you see MMF evolving within the Indian apparel industry?
The answer lies in trusting the process of evolution. Demand drives supply, and supply in turn fuels demand. India has long been known as a cotton-centric manufacturer, which, while advantageous, also creates limitations.
When global brands think of cotton, they turn to India. But when it comes to synthetics, many don’t even consider India as an option—leading to fewer inquiries, less production, and a slower transition. However, with the "China Plus One" strategy and India's rising domestic consumption, the landscape is shifting. Even without export demand, India's market is substantial, prompting manufacturers to expand into synthetics. This transition is inevitable.
Looking at the broader industry push, there is demand from global markets for MMF, which naturally stimulates supply. Simultaneously, the Indian government is promoting domestic manufacturing through policies like "Make in India" and restricting imports where feasible. Capacity in MMF is growing, but how do you see the ecosystem developing in the near to midterm?
The ecosystem is undeniably expanding, though not without policy hurdles. Government interventions often favor larger players, who have more influence in shaping policies—particularly in raw material manufacturing. While India aims to promote domestic production, some policies inadvertently contradict this goal.
For example, only recently have import duties been introduced to protect domestic manufacturers. Despite years of lobbying, issues like underinvoicing persist, with imports sometimes undervalued by as much as 80%.
Additionally, trade agreements complicate the scenario. India allows duty-free garment imports from Bangladesh, which, in turn, imports duty-free fabric from China. Effectively, Chinese fabric enters India tariff-free, creating an uneven playing field. Similar trade pacts exist with Thailand, Vietnam, and Malaysia. While the government is taking steps, changes remain incremental. They are listening, but not always enough.
To conclude, I’ll reiterate my initial point—we must trust the process of evolution. India's vast domestic market ensures continued industry growth, regardless of exports.
And as international demand rises, exports will be an added advantage. Encouragingly, we are already witnessing a surge in export inquiries. The future is promising.
Ultimately, I have to say, "I believe Bharat Tex 2025 was a fantastic initiative.".