India Investment Journal September Edition

///India Investment Journal September Edition

Unleashing India’s textile talent

2018-12-03T10:09:02+00:00September 29th, 2017|2018/2017, From The Top, India Investment Journal September Edition, Year|

India’s textile sector is undergoing a long overdue restyling, writes India Inc. Founder & CEO Manoj Ladwa.

The Indian textiles industry is a $100-billion giant, which employs about 50 million people, making it the country's largest employer in the organised sector. It is also one of the largest contributors to the export trade, accounting for nearly 15 per cent of India’s total exports. This 5,000 year old industry is arguably also the oldest in the world. So, it might appear a bit strange for me to then call this moulting giant a sunrise sector until you realise that the headline figures, as impressive as they are, merely scratch the surface of its untapped potential.

The Indian textile sector already has all the ingredients necessary for global leadership: abundant raw material both natural and man made talented and relatively cost-effective labour, world class design talent and an entrepreneurial class with astute business acumen.

The one key input that this sector lacked so far was sufficient governmental support in the form of freedom from bureaucratic red tape and official zeal to push ahead of all players.

With an ambitious minister like Smriti Irani now in charge of the ministry and the full support of a ‘can-do-will-do’ Indian Prime Minister, that last requirement is now no longer a constraint.

The opportunities are massive. India has a minuscule sub-four per cent share in readymade gar-ments. This is the segment where the maximum value can be captured. It’s also the segment in which India lags behind countries such as China, Bangladesh, Vietnam, the Philippines. There is no reason for this status quo to continue, and I'm glad to see that the Indian government is actively collaborating with the industry to fix the situation.

After decades of gathering dust in the proverbial closet, the textiles sector is witnessing a rejuve-nation.

Global majors such as Zara, Benetton, Levi's, Marks & Spencer, H&M, as well as Indian majors such as the Aditya Birla Group, Raymond and Bombay Dyeing are investing billions of dollars on both the front and back ends of their operations, to use India both as a sourcing base as well as a market for their products.

Wages are rising in China, diminishing the competitive edge of its producers, many of whom are contract robbers for large Western buyers. These American and European principals, as well as many Chinese companies, are now looking for other destinations to move their factories. It is the perfect opportunity for India to step up its game and capitalise on this shift in the global market. And there is every indication that the Indian industry, with the proactive support of the Narendra Modi government, is working towards doing so.

India is the largest producer of cotton and jute, and the second-largest producer of both silk and man-made fibres in the world. Its large pool of talented workers, abundant local sourcing oppor-tunities for the wide range of materials and the thousands of design school graduates mean India can easily achieve the required dramatic ramp up in capacity. The nearly $1billion Textile Policy unveiled recently aims to facilitate precisely this transition.

The textile sector, which is highly labour intensive, has a huge job potential and can generate mil-lions of low, medium and high skilled jobs for the large battery of young Indians who enter the In-dian employment market every month. The latter being a useful resource, with more and more Indian designers from Dhruv Kapoor and Soham Dave to industry names like Ritu Kumar and Sa-bhyasachi Mukherji taking on a revivalist approach to Indian textiles and fabrics. India’s National Institute of Fashion Design would do well to extend this heritage approach towards training future designers. It is a little-known fact that ancient Rome yes, the fabled Roman Empire had to im-pose a partial embargo on imports of Indian textiles because Indian merchants were taking away a disproportionate amount of Roman gold, creating major problems for the Roman economy.

Such was the draw and value of Indian textiles in an earlier age.

The current shifts in the global market mean the entire western market, as well as those in Africa, South America and the Far East, could be up for grabs. If Irani and her team works closer with In-dia’s Commerce Ministry to explore ways in which to boost exports, especially in Africa, with a major focus on job creation, this market or at least a part of it could easily fall into India’s lap.

The next few years should be an interesting time for Irani, and if she and her team can pull this transition off, they might just restore the historical status Indian textiles once enjoyed in the world.

Manoj Ladwa is the founder of India Inc. and chief executive of MLS Chase Group @manojladwa

Growth rate dip a temporary blip for India

2018-12-03T10:09:40+00:00September 25th, 2017|2018/2017, India Investment Journal September Edition, Last Word, Year|

Ignore the doom mongers, India will return to the high growth path by winter.

There’s an old truism about India which holds that for everything that is true about this country, the exact opposite is also correct. This is true for the Indian economy as well.

The country’s foreign exchange reserves recently crossed the $400-billion mark, making India the world’s sixth-largest holder of forex, ahead of the Euro zone, Brazil and Taiwan. The Indian rupee, which had fallen to a low of Rs 68.85 against the US dollar four years ago under the previous Congress-led UPA regime, has gained about 6 per cent to about Rs 64 and experts expect it to strengthen further.

Short Takes

2018-12-03T10:10:13+00:00September 21st, 2017|2018/2017, India Investment Journal September Edition, India-Japan, Year|

Japan’s NTT eyes India growth

Japan’s NTT Communications Corporation (NTT Com), an ICT solutions and international communications business within the NTT Group, has announced the launch of its international data network services in India through its affiliate NTT Communications India Network Services (NTTCINS).

The acquisition of this licence in India follows the initiation of construction of the company’s two new data centres in Mumbai and Bangalore, through Netmagic, a subsidiary of NTT Com and one of the leading managed hosting and cloud service providers in India.

NTT Com President and CEO Tetsuya Shoji said: “India has been a key strategic market for us with the accelerating shift of IT services from traditional enterprise data centres into the cloud-based services.

“For the past few years, our business in India has consistently grown over 35 per cent annually. With further expansion of data center foot print and addition of international data network services to our service portfolio, we aim to meet the growing market needs for Mobility, e-Commerce, Internet of Things (IoT), Cloud and Big Data.”

Indian realty sector projects investor-friendly image

2018-08-09T11:06:27+00:00September 20th, 2017|2018/2017, India Investment Journal September Edition, Other Highlights, Year|

A favourable regulatory environment and attractive asset valuations are enhancing investor confidence by changing the perception of Indian realty in the global arena, a new official report reveals.

The Confederation of Real Estate Developers’ Association of India (CREDAI), the apex body for private real estate developers in India representing 11,940 developers across 23 states and 171 city chapters across the country, held its annual national convention (NATCON) in London recently to project the sector’s increasingly investor-friendly image.

GST: Implications for Indian textiles

2018-05-18T13:02:56+00:00September 20th, 2017|2018/2017, Cover Feature, India Investment Journal September Edition, Year|

India’s Goods and Services Tax (GST) has the potential to make the country’s textile industry more competitive.

A long-awaited taxation reform aimed at “One Nation, One Tax” became a reality in India when the Goods and Service Tax (GST) Act was passed in Parliament on March 29 this year and came into effect from July 1.

A silent revolution in the Indian broking market

2018-05-18T13:02:56+00:00September 20th, 2017|2018/2017, India Investment Journal September Edition, Other Highlights, Year|

India Inc. property expert analyses the post-implementation impact of the Real Estate Regulation Act (RERA) and Goods & Services Tax (GST) in India.

If there was one common concern that all developers, especially the ones in residential developments, had in India in the month of June and July, it was the implementation of Real Estate Regulation Act (RERA) and Goods & Services Tax (GST). Larger firms had dedicated internal teams while smaller firms had a battery of consultants and temporary staff assisting in this implementation. The management was fully focussed on getting these two tasks done with sales and construction trailing behind as non-implementation would mean stoppage of business.

Towards a global quality standard for Yoga

2018-12-03T10:10:36+00:00September 20th, 2017|2018/2017, India Investment Journal September Edition, Year, Yoga Corner|

A well-rounded approach to teaching methods will result in more aware Yogis and instructors.

Now that Yoga starts its journey towards regulation, standardisation and achieving higher educational and practitioner quality in the form of the Quality Council of India’s governance, aspiring Yogis and instructors are being subjected to testing and examination on the profound depth of the wisdom held in this ancient practice.

Karnataka: Investor’s darling

2018-12-03T10:11:08+00:00September 20th, 2017|2018/2017, India Investment Journal September Edition, State Focus: Karnataka, Year|

Having attracted the most investments in 2016, Karnataka is already a favorite with investors but blessed with rich minerals and abundant skilled manpower, there is still a lot of untapped potential.

The year 2016 was a landmark one for Karnataka. As per the Department of Industrial Policy and Promotion (DIPP), during the year the proposed investments in the state saw a massive five-fold jump from Rs 31,668 crore ($4.8bn) in 2015 to Rs 1,54,173 crore ($23bn).

A tech-led reimagining of Indian agriculture

2018-12-03T10:08:28+00:00September 20th, 2017|2018/2017, Flagship Scheme, India Investment Journal September Edition, Year|

The UK-based Global Innovation Fund, which invests in innovations targeted at improving the lives of the poorest people in developing countries, has pumped in millions to back an Indian farm mechanisation project.

EM3 AgriServices, India's leading private sector farm mechanisation services company, has raised a $10 million Series B round from London-based Global Innovation Fund (GIF) and existing investor Aspada. The company had earlier raised a $3.3 million Series A from Aspada in June 2015.

India needs a digital mindset to tackle tech taking over jobs

2018-05-18T13:02:57+00:00September 20th, 2017|2018/2017, Flagship Scheme, India Investment Journal September Edition, Year|

Re-skilling and up-skilling must go hand-in-hand with tech advances in India, writes a digital expert.

Last month, the lead singer of 70s band Talking Heads, David Byrne, wrote in the ‘MIT Technology Review’ about how tech is eliminating humans. With AI, autonomous vehicles, robots, automated self-service check-outs, and lots more, he says the art of human interaction will die away, since there will be no humans doing the traditional jobs of serving customers. But what does that mean for India, where there are over a billion people: if tech will replace all the manual jobs that give people a daily living, what will they do?