27 September 2023, Mumbai
Industry officials highlight challenges of structural issues related to raw materials, high production costs, and operational scale.
The textile and clothing sectors, which play a significant role in India's economy, need a comprehensive, forward-thinking strategy to capitalize on global market opportunities, according to industry officials.
Contribution
The sectors contribute Rs 30,000 crore in GST revenue and generate USD 44 billion in foreign exchange earnings, but have faced challenges in recent times, including structural issues related to raw materials, high production costs, and operational scale.
SIMA Chairman SK Sundararaman highlighted these concerns as obstacles to their continued growth and success.
Holistic View; He called for a comprehensive strategy that addresses the structural issues in the sector, such as the high cost of raw materials and the need for scale. He also urged the government to provide more support to the sector in terms of infrastructure development, research and development, and export promotion.
Job creator
The textile and clothing sectors are among the largest employers in India, providing direct employment to over 45 million people. The sector also plays a significant role in the country's foreign exchange earnings.
However, the sector has been facing challenges in recent years due to a number of factors, including the rising cost of raw materials, competition from low-cost countries such as Bangladesh and Vietnam, and the lack of scale.
A comprehensive strategy that addresses these challenges is essential to ensure the continued growth and success of the textile and clothing sectors in India.
