India produces about 25 of global yarn but only 4 of global garments What could be the possible reas...........

Geography Agriculture

India produces about 25% of global yarn but only 4% of global garments. What could be the possible reason behind this mismatch?

There is high demand of good quality Indian Yarn in global market.

There is a mismatch between the spinning and weaving capacities of Indian textile sector.

India does not possess the technology and skilled labour for garment manufacturing.

The labour cost for garment manufacturing is too high in India.

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Explanation:

The reason behind this is mismatch between spinning and weaving capacities of India. Textile manufacturing involves following steps-

The spinning is done in spindles and the spindle technology in India is advanced and second only to China in capacity. As a result India produces high quality Yarn.
But the weaving in India is concentrated in informal sector in a highly decentralized manner with individual Indian weavers operating on old handlooms and powerlooms. Modern centralized mills form only 3-4% of Fabric production in India and rest coming from small scale and individual weavers. The share of industrial/mill based fabric production is low in India due to these reasons-
• The weaving has been kept decentralized to incorporate traditional weaving skills like Zari, Phulkari etc. which are produced by mostly family based units.
• The mills are limited to save the weaving sector for small-scale and cottage industry.
As a result the weaving sector is unable to consume most of the high quality yarn produced in India and the yarn is exported in global market. India is unable to utilize the benefits of value addition in global market as yarn is way cheaper than garment.
So much so that several of our garment manufacturers have to import fabric.
Recently government of India has started focusing on weaving sector by providing assistance to garment manufacturers under the TUFS (technology upgradation funds scheme)