Export promotion policies can help India’s online textile industry create new global leaders
COVID-19 crisis has provided the Indian online apparels and textile industry with an opportunity to create global magnates. The crisis-led lockdowns have boosted online textile sales to such an extent that the sector was able to rid itself of its dependence on wholesalers, retailers and middlemen. Revenues of online retailers’ also spiked during the period.
As most shopping during the lockdown took place via the online route, customers got an opportunity to choose products at convenience. They could also easily return their products in favor of new ones with favorable returns policy on many online platforms. This trend of online textile retail is likely to persist and give birth to many online retail unicorns in future.
Demand to fuel growth in 2021
As per a DataQuest Report, India’s economic recovery in 2021 will be led by its growing e-tailers. India’s online apparel and textile industry is expected to mature on account of increased consumption in the domestic market and improved demand for exports. The government also plans to focus on the textile sector in its upcoming fiscal plans. In Budget 2021-22, the government proposed a plan to set up mega textile parks across the country. These parks will help India attract global investments and boost employment.
In all, the government plans to set up seven textile parks over three years. These parks will have integrated facilities and a quick turnaround time to reduce transportation losses. They will benefit e-retailers most by enabling them to provide an enhanced retail experience to online shoppers.
Industry to witness new development trends
Technology will also help online textile industry revive its past glory. Industry leaders will be able to explore new textile technologies across all operations, from sourcing raw materials to making finished products available to customers. The industry will also witness new development trends including an increased demand for natural fibers and a shift towards non-woven fabrics.
The second largest employment generating sector in India, the textiles industry has immense potential to contribute to its future growth and success. However, the sector’s success depends on the government’s ability to introduce development-friendly policies and curb red-tape in schemes introduced for the sector. In its latest Budget, the government has announced rationalization of duties on raw materials. However, it needs to introduce more sector specific export promotion policies. Support in the form of policies, promotions and incentives will help the online textile sector create new global leaders.
