September 24, 2022
  • September 24, 2022

What does the textile industry have?

By on June 14, 2022 0

Our unity government has completed its eight years and celebrates it in various ways. When it comes to the economy and specifically our textile and apparel industry, I was able to count eight major stages of government.

But before coming to these points, I must say the most important point is that the government realized the importance of the industry and this was perhaps the first time in the history of India , especially in the last decades, that a Prime Minister invited a delegation from the textile and clothing industry, listened to them. Similarly, over the past year, the ministries of textiles and industry have both shown a different level of understanding of each other.

To what extent have these measures benefited the industry and what are the visible results? Arguably it depends on how you take it and how much you trust the government. But, we must agree that such measures are necessary for the industry and have created good feelings.

During these eight years, we have witnessed important milestones such as the implementation and demonetization of GST. There is no doubt that the industry from top to bottom faced many challenges initially, but in the long run, the economy benefited from the GST and it also benefited the industry.

The government’s main task for the industry is to back it up with policies and provide support where needed. And the government did it well.

Almost six years ago, the Union government announced the Rs 6,000 crore package for the industry in a bid to create jobs and attract new investment. Today, the Production Linked Incentives (PLI) program deserves to be appreciated as it gives impetus to synthetic fibers and technical textiles. And the industry’s overwhelming response to this program shows how well they have welcomed it. Similarly, PM Mega Integrated Textile Region and Apparel (PM MITRA) has pushed states to opt for massive infrastructure. Almost every major state or state with a good size textile industry has not only applied for the park, but they are also actively working to get at least one park under this program. Technical textiles is another segment that the government is focusing on and what is emerging on the ground shows that India has a better future in this area.

Labor law reforms, various steps to make it easier to do business and a package for MSMEs to save them from the impact of the Covid-19 pandemic are also some of the initiatives that prove the government has a state industry-friendly and understands the importance and potential of the textile industry. Recent FTAs ​​with the United Arab Emirates and Australia will also benefit India’s textile and apparel exports, as well as other industries. Startups are a major focus for the government and span from e-commerce to fintech, D2C brands, there are many good startups in our industry that have grown well over the past few years and have the opportunity to grow further. The government deserves all its credit for the startup revolution.

There are many projects, big and small, related to traditional Indian craftsmanship, from hand weaving to handicrafts, and the celebration of Hand Weaving Day every year on August 7 is also a landmark initiative because it directly strengthens India’s basic textiles.

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

The next two years are very important for the industry as well as for the government as things internationally are shaping up differently and so far from China to Sri Lanka most of the developments are in favor of India. After a two-year struggle, the industry has now gained momentum and the next two years have the potential to shape it for the long haul.

Time and time again, the various ministers have said on the public platform that the industry should not look to the government for support, subsidies etc. But the actions taken by the government show that it has fully supported the industry. And over the next two years, if the implementation of the policy, especially the PLI and MITRA programs, goes well, it will benefit the entire industry and open many avenues for future growth.

(The author owns a clothing factory in a rural area, which mainly employs women)