India’s Textile And Clothing Industry Needs To Capitalise On Global Opportunities, Says SIMA


The Indian textile and clothing industry needs to adopt a holistic approach with a long-term vision to capitalise on the opportunity in the global market, industry officials said on Saturday. The Southern India Mills Association (SIMA) Chairman S K Sundararaman noted that the industry in recent times has been facing challenges related to structural issues on the raw materials front, increasing production costs, and operation scale issues among other things. 

Talking about these challenges, the association head stated that the industry body will provide support to address these issues and enhance global competitiveness, reported PTI. Further, officials pointed out that the textile and clothing industry is the second largest employment provider in the country after agriculture. They also stated that the industry generated Goods and Services Tax revenue of Rs 30,000 crore and foreign exchange earnings of around $44 billion. 

The association officials added that the current NDA government has provided the textiles and clothing industry with a significant boost to enhance competitiveness and resolve problems faced by the industry. 

However, Sundararaman noted, “The policy pitfalls in certain areas and delay in strengthening the raw material base, refunding government dues have been affecting the industry to achieve a sustained growth rate.” He pointed out that the state governments offer lucrative incentives, however, there is an undue delay in allocating the promised benefits on time leading to severe financial stress for the industry. 

Elaborating on the issues, he said, “Under this scenario, it has become essential to have a holistic approach with long-term vision not only to grab the space vacated by China in the textile trade but also to achieve a sustained growth rate.”

The association head called on the Union Minister of Textiles, Piyush Goyal, to provide exemptions to VSF (viscose staple fibre) imported under the Advance Authorisation scheme and ‘ all the special and value-added fibres and filaments are not manufactured in the country immediately’. 

The SIMA Chairman expressed optimism and noted that the free trade agreement with the United Kingdom and the European Union should help India in doubling it’s exports. Sundararaman was chosen unanimously to head SIMA for the year 2023-24. He is also the managing director of Shiva Texyarn Ltd. in Coimbatore, Tamil Nadu.

Also Read : Russia Imposes Indefinite Ban On Diesel Exports, Analysts Voice Concern Over Global Shortage


Source link

Leave a Reply