IGNOU| BASICS OF APPAREL INDUSTRY AND ENTREPRENEURSHIP (BHC - 005)| SOLVED PAPER – (DEC - 2022)| (CAPMER)

 

IGNOU| BASICS OF APPAREL INDUSTRY AND ENTREPRENEURSHIP (BHC - 005)| SOLVED PAPER – (DEC - 2022)| (CAPMER)

CERTIFICATE IN APPAREL MERCHANDISING (CAPMER)
Term-End Examination
December - 2022
BHC-005
BASICS OF APPAREL INDUSTRY AND ENTREPRENEURSHIP
Time: 3 Hours
Maximum Marks: 100

 

Note: (i) Attempt any five questions.

(ii) All questions carry equal marks.

1. Give an overview of the textile industry in India by focussing on the history, growth and segmentation of apparel market. 20

Ans:- Development of the Textile Industry: The origins of the textile industry can be traced to the great transformation of man from a nomadic, food-seeking hunting culture to a communal food-storing surplus civilization. Using culture, this development was confined around the civilization's four great river sources – the Nile Valley, the Tigris-Euphrates Plain, the Yangtze Valley, and the Indus Valley of north western India, where it began around 2500 BC. Primitive clothing styles were determined by climate and the nature of raw materials which naturally varied from region to region.

Little is known so far about the birth of the Indian textile industry, but it has been recorded in various quotes that the industry originated in the Indus Valley Civilization in the 5th century. People of that civilization wore hand-woven cotton clothes using indigo dye in their clothes.

The Indian economy is primarily agrarian and historians have documented the Indian economy. Their records also mention that the textile industry is the second largest industry that has contributed significantly to the development of the country over time. It has been an employer of millions of people across the country.

Indian Textile Industry: India's textile industry, which is more than 5000 years old, has undergone significant development from its humble beginnings as handlooms in villages to large-scale modern textile mills. From the era of 'Cholas', 'Seljuks' and 'Safavids' till now, the Indian textile industry has come a long way. The story of textiles in India is one of the oldest in the world. The oldest surviving Indian cotton threads date back to around 4000 BC and dyed fabrics from the region date back to 2500 BC. India's textile was so important to its identity abroad that in ancient Greece and Babylon the name 'India' itself was a short form of 'cotton'.

The Indus Valley Civilization was the center of textile production in India, with an entire urban civilization centered around the two cities of Mohenjo Daro and Harappa, which flourished between 2500 and 2000 BCE. During excavations of these civilizations, numerous spindle whorls of wool, anchor, cotton and some copper sewing needles were found, along with small figurines and engraved seals. Traces of woven cloth and large numbers of cotton seeds were also found, dating back to 5000 BC, by which time it appears that cotton cultivation and textile weaving were already at an advanced stage.

Early History of Indian Textile Industry: Textile industry in India is an important segment of Indian industries and reflects the diverse socio-economic and cultural heritage of the country. The development of the textile industry in India can be broadly classified into three distinct phases – the pre-colonial period, the colonial period and the post-independence period.

India's textile industry was famous throughout the world long before the colonial period. Silk from China and cotton from India were important imported goods to the West. Access to markets was greatly increased by the discovery of a sea route through the Cape of Good Hope by the great traveller Vasco da Gama in the 15th century. With the entry of the East India Company, the production and trade of Indian textiles and clothing became more rapid during the medieval period. Artisans in each region developed their own style of treatment and decoration of textiles from locally available raw materials. For example, Tavernier wrote that Baruch (Bharuch), with its large meadows filled with lemon trees, was particularly known for the bleaching of textiles which required lemon juice.

During the colonial period, a large variety of Indian calico and other types of cotton production entered the British Empire and the vast variety of production styles and skills of Indian artisans accumulated over generations made products manufactured in India far superior in quality. and range compared to textiles produced in Europe.

However, the situation began to change after the colonial period. As more affordable fabrics made from machine-spun threads flooded not only European but also Indian markets, traditional hand-spun threads and textiles faced stiff competition, starting with the use of chemical dyes in the West. It happened and became clearer. After the Industrial Revolution began in England, it removed all import duties on British goods in the Indian market, while the English East India Company imposed heavy import duties on Indian textiles in the British markets. Indian textile mills were not able to withstand the competition of machine-made goods produced in Britain and the Indian textile industry gradually declined during the colonial period.

With the sole agenda of making maximum profits, the textile industry in India, like all other industries under colonial rule, suffered huge losses. Therefore, it is very relevant to analyze the situation of India's independence movement and the boycott of British mill-made clothes and promotion of Khadi became the hallmark of the Swaraj or self-rule movement under the Father of the Nation Mahatma Gandhi.

Development of Indian textile industry after independence: During the British rule in India various duties and taxes along with import and export barriers were imposed on the already developed textile industry in India. Britain began exporting mill-made cloth and yarn to India as early as the 1780s. The flood of low-cost clothes and textiles from Britain into India seriously disrupted and damaged the development of the indigenous textile industry. This situation created a textile crisis in India during British rule.

India got independence from British rule on 15 August 1947. Independence also brought many challenges of industrialization and modernization. Along with the drive to increase factory production to clothe India's vast population, the government established the All-India Handloom Board in 1952 to promote hand-weaving and other textile crafts. In 1961, the National Institute of Design was established and designers began to play an important role in the modernization process.

The Indian government immediately took charge of the situation and implemented several measures and initiatives to revive the textile industry. Indian textile industry is now a well-established industry with significant features and a bright future. This country is the second largest textile manufacturer in the world after China. The Indian textile industry is an integral part of the country's overall manufacturing sector and a major contributor to the country's economy. India's textile industry is also the largest in the country in terms of employment generation. It not only creates jobs in its own industry but also opens possibilities for other supporting sectors.

Indian Textile Industry – Current Scenario: The textile and apparel industry in India is strong across the entire value chain from fibre, yarn and fabric to apparel. The Indian textile and apparel industry is highly diverse, encompassing many segments ranging from traditional handlooms, handicrafts, wool and silk products to the organized textile industry in India. The organized textile industry in India is characterized by the use of capital-intensive technology for large-scale production of textile products and includes spinning, weaving, processing and garment manufacturing.

Cotton continues to dominate the textile industry in India, accounting for about 3/4 of the total fiber consumption in the country. India is now recognized as the largest producer of cotton and jute textiles in the world. There is tough competition from China, Bangladesh, Pakistan and Vietnam for export of textile products in the global market. However, the Indian textile industry is managing to make a comeback despite the decline in business in 2020-21. Since the textile industry not only involves large textile mills and high-end apparel boutiques, self-employed artisans from rural areas have also been promoted. Through government schemes like MNREGA. Many rural cooperative societies and NGOs are also providing support to people working on small scale for the textile industry.

Future of textile industry in India: Indian textile industry is aiming to export products worth $40 to $100 billion within 2027. The promotion of this industry through several government schemes has been the biggest in the last three decades. The apparel industry is progressing rapidly with the creation of more types of products. This textile business is expanding to more countries around the world, earning more foreign money.

The demand for technical textiles in the form of PPE suits and equipment is increasing due to the pandemic. The government is supporting the sector through funding and machinery sponsorship. Top players in this sector are achieving sustainability in their products by manufacturing textiles that use natural recyclable materials. The technical textiles market for automotive textiles is projected to grow from US$2.4 billion in 2020 to US$3.7 billion by 2027. Similarly, the industrial textiles market is expected to grow by US$2 billion in 2020 at a CAGR of 8%. US$3.3 billion in 2027. The overall Indian textile market is expected to exceed US$209 billion by 2029.

With the increase in disposable income, the requirement of goods in the Indian textile sector has expanded, resulting in huge demand in both local and foreign markets. As a result, the future of India's textile industry is bright due to the rapid expansion of the retail sector, government support and investment.

2. (a) How has the growth of apparel industries evolved in developing countries? 10

Ans:- The apparel industry has grown in developing countries as labor costs have increased in developed countries. Apparel manufacturing began to move to lower-cost areas, especially Asia and Latin America.

The growth of apparel industries in developing countries is driven by:

(i) Low cost of labor

(ii) Outsourcing and offshoring

(iii) Focus on sourcing cheap raw materials

(iv) Reducing delivery costs

(v) Increase in international trade

However, growth has been restrained by:

(i) Low quality of raw material

(ii)Lack of trained workers

(iii) Inadequate supply of equipment

(iv) Quota restrictions

The share of textiles from developing countries increased dramatically in the 1970s. By 1980, these countries accounted for more than 21 percent of the world supply of some fibres.

China is the world's largest textile producer and exporter.

However, growth in global trade and globalization of production has led to changes in the textile industry. Today textile production is increasingly taking place in developing countries, where labor and resource costs are lower.

The textile and apparel industry is the gateway of choice for most developing countries trying to step into industrialization. The ease of entry into this sector and unusually high wages in developed countries have created favorable conditions for the manufacturing and export of textile and apparel derived products. At the same time, this unique situation has given rise to intense competition among many actors, leading to intense protectionism in many developed countries where export markets are found. However, paradoxically, it is US trade policies that have been the common factor in the flourishing of the textile and apparel industry in many countries and regions around the world. From Asia, this liberal openness has over time reached the Caribbean region and eventually sub-Saharan Africa. The development of this liquid industry in developing countries is examined within the boundaries of textile and apparel managed trade agreements. It is argued that success in this sector must come from the combined efforts of local government industrial and trade policies, private sector entrepreneurial skills and the flexibility and work ethic of the labor force. From SE Asia NICs to the Caribbean states and the Sub-Saharan African region, the synergy created by US trade policies and local CA capabilities has been shown to be a key component for textile and apparel sector growth. Of developing countries.

(b) Discuss apparel export industry in India.10

Ans:- India is the sixth largest exporter of textile and apparel products in the world. India exported textiles and apparel worth US$42.3 billion in 2021-22, up 42% from the previous year. India's share in global trade in textiles and apparel is 4%.

The domestic apparel and textile industry in India contributes approximately:

(i) 2.3% of the country's GDP

(ii) Industrial production 13%

(iii) 12% on exports

India is one of the largest producers of cotton and jute in the world. It is also the second largest producer of MMF fibre.

The textile industry in India is the second largest employment generating sector in the country, providing direct employment to more than 35 million people.

Some of the major players in the apparel industry in India include:

(i) Aditya Birla Fashion and Retail

(ii) Crescent Group

(iii) Arvind Limited

(iv) Raymond Limited

The domestic apparel and textile industry in India contributes approx. It has a share of 2.3% in the country's GDP, 13% in industrial production and 12% in exports. India's share in global trade in textiles and apparel is 4%. India is one of the largest producers of cotton and jute in the world.

India is also the second largest producer of silk in the world and 95% of the world's hand-woven fabrics come from India. Total textile exports are expected to reach $65 billion by FY26 and grow at 10% CAGR from 2019-20 to $190 billion by 2025-26.

The textile and apparel industry in India is the second largest employer in the country providing direct employment to 45 million people and 100 million people in allied industries.

India has also become the second largest manufacturer of PPE in the world. More than 600 companies in India are certified to produce PPE today, with the global market value expected to exceed $92.5 billion by 2025, up from $52.7 billion in 2019.

(i) India is set to achieve textile production of $250 billion and exports of $100 billion by 2030.

(ii) The domestic apparel and textile industry in India contributed 2% to the country's GDP in value terms and 7% to industry output.

(iii) India's share in global trade in textiles and apparel is 4%. The share of textiles and apparel in India's total export basket during 2021-22 was 10.33%.

(iv) Eri and Muga silk production increased by 6% and 6.7% respectively during 2021-22.

3. Write an essay on e-Commerce in the apparel industry. 20


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