What did textile industry get?

Category: General

Country: India

HIGHLIGHTS
As most of the international level developments are in India’s favour, next couple of years are highly important for textile industry

By BizzBuzz 6 June 2022 11:21 PM IST

The positive export result, good growth of many companies, and IPO by various textile and garment, and retail companies shows that textile industry is now growing. After a struggle of two years, now the industry has got momentum and the next two years have the potential to give it a shape for the long run Our Union government has completed eight years and celebrating it in various ways. When it comes to the economy and especially to our textile and garment industry, I was able to count eight major steps of the government.

But before coming to these points, I must say that the most important point is that the government has realised the importance of the industry and perhaps it was the first time in the history of India, especially in the last few decades one Prime Minister invited the delegation from textile and garment industry, listened to them. Similarly, in the last one year, the Ministry of Textiles and Industry both have a different level of understanding with each other.

How much have these steps benefitted the industry and what are the visible results, one may say that it depends that how you take it, and how much you believe in the government. But, we must agree that such steps were required for the industry and have benefitted to create good sentiments. During these eight years, we witnessed milestone steps like GST implementation and demonetisation. No doubt, the industry from top to bottom witnessed a lot of challenges initially and but in long run, the economy got benefited from GST and it benefitted the industry also.

The government's core job for the industry is to support by policies and provide support as and when required. And government has done it well.

Almost six years ago, the Union government announced the package of Rs 6,000 crore for the industry with the aim to create jobs and to attract fresh investment. Now Production Linked Incentive (PLI) scheme is worth appreciating as it gives a push to manmade fibre and technical textiles. And the industry's overwhelming response to this scheme shows how the industry has welcomed it. Similarly, PM Mega Integrated Textile Region and Apparel (PM MITRA) has pushed States to go for massive infrastructure. Nearly all big States or States having a good size of textile industry have not only applied for the park, and they are actively working also to get at least one park under this scheme. Technical textiles is another segment, which is focused by the government and the thing taking shape on the ground level shows that India has a better future in this domain.

Labour law reforms, various steps for ease of doing business and a package for MSMEs to save them from Covid-19 pandemic impact are also some of the initiatives that prove that government has a pro-industry mindset and understands the importance as well as the potential of the textile industry.

Recent FTAs with the United Arab Emirates and Australia will also benefit the Indian textile and garment export along with the other industries.

Startups is a major focus for government and cover from e-commerce to fintech, D2C brands, there are many good startups in our industry that have grown well in the last few years and have the scope to grow further. The government deserve full appreciation for the startup revolution.

There are many small and big schemes related to India's traditional crafts from handloom to handicrafts and the celebration of Handloom day every year on August 7 is also a milestone initiative as it directly strengthens India's grass route textile.

There are many more decisions taken by the government but without going into the detail, I must say that the positive export result, good growth of many companies, and initial public offering (IPO) by various textile and garment, and retail companies also shows that the industry is now growing. 

The next two years are highly important for the industry as well as the government as things at the international level are taking shape differently and so far China to Sri Lanka, most of the developments are in India's favour. After a struggle of two years, now the industry has got momentum and the next two years have the potential to give it a shape for the long run.

Time and again, the various Ministers have said on the public platform that Industry should not look to the government for support, subsidies etc. But government steps show that it has supported the industry completely. And in the next two years, if the policy implementation especially, PLI and MITRA scheme takes place properly then it will benefit the whole industry and it will open many paths to further growth.

(The author owns a garment manufacturing setup in a rural area, which employs mostly women workers)

https://www.thehansindia.com/business/tn-plans-for-cashless-ticketing-system-747894?infinitescroll=1