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Indian Garment Exporters

Status of Small and Medium Scale Exporters of India


Till today the post quota regime has been a very challenging environment for the medium and small-scale apparel and textile exporters. "The key of success, which is volume driven efficiencies combined with design capabilities and flexibility in manufacturing, poses to be a major hurdle for such exporters". In the past at least such exporters had assured business and stability by the means of allotment of quota on the basis of past performance. But now competition from other countries and even Indian exporters with huge capacities has forced small and mid scale apparel exporters to compete for productivity, quality and the cost factor. Large scale exporters enjoys the benefits of expansion in vertical or horizontal integrated operations as they have enough funds to implement such kind of projects to meet the quota free market requirements, i.e. again productivity, quality and cost factor.

Coming to mid and small scale apparel exporters. Expansion and modernization is not so feasible for such exporters. It incurs high investments to achieve expansion and modernization of units. The only left option is 'Consortium'. Consortium of a mid or small scale apparel exporter with other alike scale exporters can not only help them achieve economies of scale and hence lower cost per unit product, but also offering a wide product mix in terms of handling different product type or different design and create a very effective source for generating market i.e. sourcing orders.

The dissertation report will be focused on the above-mentioned problems being faced by the small and medium scale garment exporters in the post quota regime. After a well-done research by the means of primary and secondary data, the report will finally conclude whether consortium is the right option to choose for growth and success of small and medium scale exporters.

The report will help small and mid scale exporters understand the various advantages and benefits of consortium for their growth in the current competitive scenario.

Posted by: Jeffrey J. Thomson

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