Question

Why is it important for us to improve our weaving sector instead of exporting yarn in large quantities?

Answer 1

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Hi,

Yarn is ultimately used for weaving/knitting. Yarn maybe exported due to over production capacity of the yarn spinners’ (assuming after exhausting buying capacity of domestic weaving units) or due under production capacity of weaving/knitting facilities.

India has a lot of manpower which can be used in the production (weaving) sector and related industries. To the best of my knowledge, India’s daily production of fabric is estimated to be over 3 million mtrs currently. Rapid imports of modern weaving machinery and gradual phasing out of old/slower machines is happening at the moment.

Increasing the weaving capacity will increase the GDP of the country, creating more jobs and at the same time create opportunity for development of ancillary industries like dyeing, processing and printing of woven fabrics, production of stitched garments.

This could also mean reduce in imports of fabrics and ready made garments thus saving foreign exchange reserves and reducing the fiscal deficit of the country and using it for other important products.

After every step mentioned above, value is added and more value addition means higher returns and more employment opportunities in the country.
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