'South Asian countries suffer from high lead time'
The South Asian Textiles and Clothing Industry was originated to the
global market and exporters should have access to supplies of raw
material at world prices, United Nations Conference on Trade and
Development (UNCTAD), said in a report.
The report also states that there were various factors associated
with competitiveness where regional supply chains could exert beneficial
effects. It is evident that transport costs reduce tradeable volumes. In
ideal circumstances, supplies procured within the region would involve
lower transport costs and thereby improve individual South Asian
countries' competitiveness. With regard to exports of textiles and
apparel, most South Asian countries suffer from high lead time. Regional
sourcing of raw materials, particularly apparel, could greatly help to
mitigate this problem. The existing scope for exploiting supply chains
largely depends on the progress made on overall co-operative efforts
among South Asian nations.
The existence of bi-lateral political differences had affected the
progress of the regional economic co-operation.
It has been found that South Asian countries have more restrictive
trade regimes with their regional partners than with the rest of the
world. Together with tariff barriers, a plethora of non-tariff measures
seriously constrain intra- regional trade and investment flows. Due to
lack of political will, the region also suffers from relatively poor
trade facilitation and high transaction costs associated with
All this has serious implications for promoting regional supply
chains. These countries need to identify potential supply chains that
could be formed within the region if the south Asian countries intend to
emerge as globally more competitive suppliers of textiles and clothing .
However, the region has the supply capacity for exports and in many
cases, the region already had lower -cost suppliers.