The country’s textile industry, which is currently estimated at USD 108 billion, has potential to cross USD 500-billion mark by 2025 if the sector gets adequate support from the government, says a report.
“If the Indian textile industry takes the right steps and gets adequate policy support from the Government, it could cross USD 500 billion by 2025 from its present size of USD 108 billion.
This will also catalyse another 35 million jobs and USD 200 billion of investments,” according to a study report by leading textile and polyester consulting firms Wazir Advisors and PCI Xylenes & Polyesters. The USD 500 billion market figure consists of domestic sales of USD 315 billion and exports of USD 185 billion.
The current industry size comprises domestic market of USD 68 billion and exports of USD 40 billion, Wazir Advisors Joint Managing Director Prashant Agarwal told reporters here today.
“We have belief that India is a goldmine for growth of textiles and apparel value chain, whose potential is yet to be fully tapped,” he said.
Agarwal said the government needs to give more support to the industry with specific focus on manmade fibre based textile value chain.
Immediate GST implementation to remove differential tax treatment to manmade fibres, creation of mega textile parks, single window system for FDIs, labour law reforms, extension of loan period in case of TUFS (Technology Upgradation Fund Scheme) and R&D promotion are some of the policy measures needed to boost the industry, he said.
Implementation of these suggestions will help to attract investment, technology upgradation, innovation and healthy growth of the industry, Agarwal said.
With 5.2 per cent share of global trade, the Indian textile industry ranks second in the world, but far behind China. This is likely to change, with China’s share in global textile trade expected to go down by 5 per cent which will help India to push up its exports to USD 185 billion, the report said.
Indian textile industry needs to effect a major shift in its fibre mix, which is presently tilted towards cotton (55 per cent), while the fibre consumption of the world is tilted towards polyester fibre (50 per cent), it maintained.
Source:niticentral.com
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