Improving Cost Competencies by Legalized Software in Textile Industry
Ms. Shikha Sharma M.Sc. in Clothing and Textiles (Pursuing PhD) Ludhiana, India Email: prernakapi@gmail.com
How Fair Competition Laws Are Reshaping Global Manufacturing Standards
It started with some relatively simple-looking, fair-competition-focused laws in the U.S. states of Washington and Louisiana in 2011, but these laws are better understood as part of a broader policy effort aimed at ensuring that a level playing field is provided to manufacturers. It envisages that companies competing at an international level comply with the conditions prescribed in law and stay away from pirated or otherwise unlicensed software. This restriction not only aims at providing a healthy economic landscape and building respect for property rights by eliminating unfair competition, but it also encourages a culture of innovation for the benefit of individuals as well as society.
Why India’s Textile Industry Remains a Global Manufacturing Powerhouse
The textile industry in India holds a distinctive position because of its substantial contribution to employment generation, industrial production, and foreign-exchange earnings. Currently, the textile and apparel sector remains one of the country’s largest manufacturing industries, accounting for roughly 8–9% of India’s merchandise exports and remaining one of the largest sources of employment after agriculture. The main segments of the Indian textile industry are man-made fibre and filament textiles, cotton textiles including handlooms, silk textiles, woollen textiles, handicrafts, coir, readymade garments, and jute. Major progress is also being made in the field of technical textiles. Interestingly, textiles and clothing together constitute a significant share of global merchandise trade. It has the unique advantage of being a self-reliant industry, from the production of raw materials to the delivery of finished products, with substantial value addition at each stage of processing. Both organized and unorganized segments are major parts of the textile industry, with a large share still falling within decentralized and informal production systems. There are numerous textiles and clothing clusters functioning and growing at a steady pace in the country. In this diverse industry, the hand-spinning and hand-weaving (handloom) sector is flourishing with an intensity comparable to that of the highly mechanized and sophisticated mill sector. The decentralized power loom, hosiery, and knitting sector is a major section of the textiles industry. The competitiveness of the industry is extremely high in the spinning sector due to good technological developments and the timely adoption of modern machinery.
How Technology and Software Are Transforming the Apparel Industry
Today, modern techniques, electronics, and innovation have led to a competitive, cost-sensitive textile industry offering a diversified range of products. The industry must remain extremely competitive, and a quick response time is required in order to hold its position as a supplier of textile products around the globe. Order lead times have come down tremendously with the progress in the field of information technology, which provides better connectivity and real-time transfer of information. This technology has penetrated nearly every field and adds effective value through efficient processes, much better control over manufacturing processes, and the facilitation of healthy and sustainable growth. Various software applications are commonly used in all facets of the apparel industry, including back-office support, product design, production, and production management, and systems such as enterprise resource planning, computer-aided design, and product lifecycle management have greatly improved operational efficiency for manufacturers. However, information technology companies in the United States are concerned about the prevalence of pirated software in the apparel industry, as it distorts the market and undermines legitimate competition.
Pirated Software, Unfair Competition, and the Rising Compliance Risk
In this highly competitive scenario across the globe, where profit margins are drastically low and business risks have increased substantially, it is widely argued that apparel manufacturers who have not paid proper software licensing fees have a significant cost advantage in the low-margin business of apparel manufacturing, shipment, and sales. This sentiment has been a major factor in the re-evaluation of existing anti-piracy and unfair-competition laws in the United States. Such developments increase pressure on manufacturing companies to adopt properly licensed software for efficient operations and to prevent misuse. Those who support these laws are of the strong view that companies making use of pirated software have a very clear cost advantage, and this advantage can easily fall under the bracket of unfair competition. It is important that any Indian manufacturer exporting to the United States is aware of the intricacies involved in this law as well as the potential implications of non-adoption of the required criteria.
What the Washington UCL Means for Indian Exporters and Supply Chains
The Washington Unfair Competition Law (UCL) creates the potential for liability not only for companies that misappropriate proprietary IT and use that IT in manufacturing their products, but also for certain actors within the supply chain under specified conditions. This is of crucial importance for Indian manufacturers, for whom outsourcing is a common practice. A plaintiff must be a competitor of the direct violator that manufactures products that are in direct competition with the products alleged to have used misappropriated IT. The UCL requires the plaintiff to provide notice to the alleged direct violator and afford that violator an opportunity to cure the violation—such as by obtaining the necessary licenses.
Why Early Software Compliance Can Become a Competitive Advantage
Getting companies to agree to a transition to legitimate IT products when such a vast range of counterfeit products is so easily available could be a challenge initially. However, given the advantages it offers, Indian manufacturers that want to be globally competitive should make this transition at a very early stage. A fair basis for competition is always beneficial for the growth of companies, and manufacturers should review the software being used throughout their supply chains so that any risk arising from non-compliance can be avoided.
The Road Ahead for Indian Manufacturers in the Global Export Market
This legal framework should be viewed with optimism, and Indian manufacturers should seize this opportunity to increase their global competitiveness, as it gives India an opportunity to compete much better in the world market by strengthening compliance while ensuring the overall growth and well-being of the domestic economy. It therefore follows that rapid compliance can help India compete effectively against other developing economies and allow it to command a higher share of global exports. However, any disruption caused by lack of compliance will clearly damage its prospects in the global market.
Conclusion
Fair-competition and software-compliance requirements are becoming increasingly important for globally active manufacturers. For India’s textile and apparel sector, early adoption of licensed software, stronger supply-chain oversight, and greater legal awareness can reduce compliance risks and enhance international credibility. By aligning technological modernization with lawful business practices, Indian manufacturers can strengthen competitiveness, protect market access, and improve their long-term position in the global export economy.
Founder & Editor of Textile Learner. He is a Textile Consultant, Blogger & Entrepreneur. Mr. Kiron is working as a textile consultant in several local and international companies. He is also a contributor of Wikipedia.
