Mumbai: There is a saying that the status of a person is understood by the clothes. That’s why everyone wants to wear good clothes to enhance their personality. Due to this desire of every person, the textile business is making an evergreen business, but in this era of globalization for the last few decades, due to many reasons like cheap imports, tough competition from competing countries, neglectful government policies, the textile industry is heavily employed. (Textile Industry) was going through a bad phase. But after the corona epidemic, the situation has changed and now the Modi government has also become serious to increase the growth of the textile industry. And ever since Piyush Goyal has taken over the command of the Ministry of Textiles, since then the special focus of the government has started showing on this industry. Piyush Goyal has started promoting the growth of the textile industry by giving incentives on both the domestic trade and export fronts.
For this, he came up with the Production Linked Incentive (PLI) scheme to increase production and reduce imports in the country, under which approval has been given for the construction of 7 Mega Textile Parks in the country. Due to which about 7.50 lakh new jobs are expected to be created. The Textiles Minister has also played a key role in postponing the 7% GST hike that will come into effect from January 1, 2022, to provide protection to the domestic textile trade.
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Exports reaching new heights
Due to the efforts of the government and the favorable situation at the global level, India’s textile exports have started increasing rapidly. During the 9 months (April-December 2021) in the financial year 2021-22, India’s textile exports have grown by 31% to a value of $ 30 billion. There is also a big advantage for India that raw material is cheaper in India as compared to competing countries. Exports worth $ 44 billion are expected in the current fiscal year 2021-22, which will be the highest after exports of $37.7 billion in 2014-15. Now Piyush Goyal has set a target of taking India’s textile exports to $100 billion. Although this goal is not easy, but it is not impossible either. After the US imposed restrictions on imports from China’s textile hub Xingzheng area last month, there are good opportunities for India to increase exports. The US President has taken this decision after reports of workers being exploited in Xingzheng. The Xingzheng region accounts for 20% of the global cotton market. India can get a major part of this, as the US alone accounts for 15% of the textile and apparel purchases globally.
Investors attracted in shares of textile companies
After the US sanctions, now Indian cotton and cotton yarn exports are expected to increase rapidly. According to a report by research firm Spark Capital, India’s cotton and cotton yarn (spinning companies) and made-ups segment i.e. home textile companies are expected to get the most benefit from the US ban. For this reason, investors are also getting more attracted towards the shares of companies of these segments.
Silver for cotton farmers of Maharashtra
Cotton prices in the global market have risen to new highs in 10 years and have risen by more than 40% in the past one year due to increasing worldwide demand. India is the second largest producer of cotton in the world with a share of 25%. So it is beneficial for India. The farmers of Maharashtra, Gujarat and Telangana are getting the maximum benefit from rising cotton prices. Together these three states contribute 65% of the total cotton production of the country. Maharashtra is also the largest cotton producing state with 25% contribution. Therefore, the state is also getting the maximum benefit of the boom.
Global environment favorable for India: Rahul Mehta
Rahul Mehta, Chief Mentor of the Clothing Manufacturers Association of India (CMAI), the industry body, says that due to the creation of a favorable environment for India in the global market and the priority given by the government on the development of the industry, ‘Acche Din’ for the Indian textile industry is visible. are. The government has taken very good steps, especially the PLI scheme to promote quality production of man made fiber and technical textiles and the introduction of 7 Mega Textile Parks for garment manufacturing on a large scale. Both these steps will remove two major weaknesses of India’s garment export sector and will go a long way in increasing export potential in the global market. Factors such as US import ban from China’s Xinjiang, rising demand in the US market and Bangladesh ending 10% export facility from Europe in 2024 are encouraging. Due to which India’s exports will shine further.
Worrying record rise in cotton yarn
However, one of the major concerns is due to the record jump of up to 60% in cotton yarn prices, said Rahul Mehta. The government has to pay immediate attention to this. India’s garment and home textile exports are growing less than expected due to costlier cotton yarn. Therefore, in order to increase exports and employment, the government has to make a policy to promote the export of finished products (garment, home textile) instead of raw material (cotton and cotton yarn), because the garment sector accounts for more than 50% of the entire textile industry. That is, it gives 1.20 crore jobs.
Government’s steps brought new enthusiasm in the industry: Harshvardhan Bassi
Harshvardhan Bassi, textile industrialist and Managing Director of Pioneer Embroideries Ltd, says that for the first time after many decades, the government has focused on making the textile industry an important industry from the point of view of employment and exports. As the Minister of Textiles and Commerce, Piyush Goyal is taking commendable steps to increase investment, employment, production and exports in the industry. Due to the meaningful steps of the government, new enthusiasm has been infused in the industry. This is the reason why companies are also making new investments to increase production capacity and do technology upgradation. Pioneer Embroideries is also increasing its polyester yarn capacity from 18,000 tonnes to 26,000 tonnes.
$100 billion export target possible
Harshvardhan Bassi said that due to the anti-China environment in the global market after the COVID epidemic, textile companies of America and Europe are increasing their purchases from other countries like India, Vietnam, Bangladesh, Pakistan instead of China. India is getting more benefit from this, because here the government is giving full cooperation to the industry. Due to which Indian companies are being successful in increasing exports. In the coming years, with the concerted efforts of the government and industry, India will surely be able to achieve the target of 100 billion dollars of textile exports.