Government urged to address structural issues faced by textile/apparel sector

The government should address the structural challenges faced by the Indian textile and apparel industry to achieve $100 billion in exports by 2030, according to stakeholders of the industry. At a meeting held in Coimbatore on Friday to discuss the challenges faced by the textile and apparel exporters, they discussed the reasons for the nil growth in textile and apparel exports for almost a decade. The exports are stagnant at $37 billion $42 billion in value. The volume of exports has shrunk, which is a matter of concern, they said. The exports should grow at 17% CAGR to achieve the target of $100 billion by 2030. The industry needs to invest $100 billion to achieve overall market size of $350 billion, including the $100 billion exports (10% of global textile and apparel trade). Since the return on investment is not viable, the industry is not ready to invest in expansion projects and build capacities. The meeting discussed about structural issues, including raw material prices and high labour costs, that are a major hurdle apart from cost of capital, power tariff, and relatively higher lead time to deliver orders. The fundamental issue is raw material prices and there should be no restriction on imports and exports. As an immediate measure, the import duty on cotton should be removed, they said. A report by AT Kearney Consulting and the Foundation for Economic Development said the government has introduced schemes such as the PM MITRA, PLI, advance authorisation, etc to address the cost issues. According to the stakeholders, for every ₹1 crore investment, the sector generates 60 direct jobs. It has achieved global scale in segments such as spinning, home textiles, technical textiles, and denim. For the industry to leverage the strengths, tap opportunities in the international market and register growth, the basic challenges need to be addressed, they said.