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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