Foreign Direct Investment (FDI) Scenario in Indian Textile Sector
Realizing the importance of FDI in growth of any sector, Ministry of textiles wanted to conduct a study with objective to analyze the FDI data and FDI attractiveness in Indian Textile Sector. Wazir was appointed as the strategic consultant for this assignment.
The key objective of this assignment was to analyze the FDI scenario in Indian textile and apparel and suggesting strategies to attract FDI. To conclude this, the following steps were undertaken:
- Understanding FDI in Indian textile and apparel sector covering the following:
- Data analysis for fact finding and trend analysis
- Competitiveness benchmarking
- FDI policies analysis
- Impediments to FDI in India
- Understanding global FDI scenario covering:
- Analysis of largest FDI recipient countries and their attractiveness
- Evaluation of FDI in Textiles
- Success stories of China, Sri Lanka, Cambodia, Bangladesh, Pakistan, Vietnam etc.
What We Delivered
- Provided a comprehensive report of analyzed FDI data including the key investors, country of origin, type of investment made, amount invested, etc.
- Formulated strategies to attract FDI in textile sector based on the learnings from key competing textile manufacturing nations and inputs from investors
Study on Existing and Prospective FTA and Its Impact on Indian Textiles Exports
Market access is the key to the growth of trade in any country. Specifically in textile and apparels, Free Trade Agreements provide countries with a duty advantage in range of 10% to 32% on FOB which is too large a gap for Indian exporters to cover by means of any cost control or productivity improvement tools. To analyze this gap, Ministry of Textiles engaged Wazir to conduct a study on existing and prospective FTAs and its impact on Indian textiles exports.
The key objective of this assignment was understand the scenario of existing and prospective FTAs and to analyse its impact on Indian textiles exports. In order to achieve the desired outcome the following analysis was done:
- Identification of nations benefitting from existing agreements and extend of benefit.
- Impact analysis of agreements as per following aspects:
- Effect on global trade of textiles and apparel
- Effect on prices
- Innovation and technology transfer
- Benchmarking of Indian textile and apparel sector with competing nations
- Analysis of India’s Textile and apparel sector in line with WTO
- Analysis of various Regional Trade Agreements
- Identification of major markets for India and various trade agreements with identified markets.
- Identification of products with higher export potential, and untapped potential markets
What We Delivered
A comprehensive report was prepared analyzing impact of various FTA’s on the following aspects:
- Sectoral growth trend in the beneficiary countries
- Impact of competing nations other than beneficiary, specifically India
- Changes required in the current FTA’s India has signed to avail the desired benefits
Location Analysis for Textile Business
Realizing the growth potential of textile manufacturing in Africa, one of the integrated textile manufacturer was planning to enter the textile industry of Africa. We assisted them to develop Africa entry strategy for their expansion.
Core objective of the project was to find the most suitable location for setting up a garment manufacturing facility in India. The study was accomplished by answering the following questions for each of the targeted states:
- The primary objective of the assignment was to “Develop a strategy to enter Africa’s Textile Industry” for the client
- The sub-objectives of the assignment were:
- Study different countries within Africa to select the most attractive market for textile manufacturing
- Conduct a detailed market analysis of the shortlisted country in terms of potential locations and apparel & textile manufacturing sector
What We Delivered
Wazir recommended the most suitable locations for textile business with the matrix for these locations highlighting the benefits and challenges inherent in each of the locations, in terms of:
- Population centers or arrays that could support the unit with sufficient direct labor
- Availability of industrial parks and industrial facilities, with evaluation of facilities offered
- Accessibility to logistics base and to commercial sea ports and airports.
- Infrastructure quality – rail, road, air/ sea ports. Quality and prices of utilities – water, fuel, electricity
- Land availability and prevalent real-estate prices
- Political and social stability
- Local transportation availability and employee housing availability
- Social Infrastructure – Education, Health, Entertainment, Housing
- Availability of individuals for manufacturing management and manufacturing staff positions