04 September 2023, Mumbai
The Indian textile and apparel industry is grappling with a decline in exports and a significant loss of jobs.
Exports of textiles and apparel fell by 13.55% from April to July 2023, amounting to $10,154.83 million. This has led to the loss of millions of jobs in the sector.
Indian textile and apparel industry facing a decline in exports, government considering fiscal incentives.
Government response
The Indian government is considering providing fiscal incentives to the industry by the end of the year.
These incentives could be channeled through the production-linked incentive (PLI) program, which has been designed to inject financial support into various manufacturing sectors.
PLI program
The PLI program offers incentives to companies that invest in and produce goods in specific sectors. In the case of the textile and apparel industry, the PLI program could be used to incentivize companies to set up new factories or expand existing ones. This would create jobs and help to boost exports.
Industry request
The industry has requested that the government provide incentives specifically aimed at smaller manufacturers. They have also asked the government to reconsider the 11% import duty on certain varieties of cotton. This duty makes it more expensive for Indian manufacturers to produce textiles, which makes them less competitive in the global market.
Concerns
The industry is concerned about potential job losses and is urging the government to take comprehensive measures to support the sector. They are also concerned about the impact of the decline in exports on the overall economy.
The textile and apparel industry is a major employer in India, providing jobs to millions of people. The decline in the industry is having a significant impact on the economy and the livelihood of many people.
The government needs to take urgent steps to support the industry and prevent further job losses.
In addition to the fiscal incentives and the PLI program, the government could also take other measures to support the textile and apparel industry.
These measures could include:
- Providing infrastructure support, such as roads, ports, and power, to make it easier for companies to operate in the sector.
- Facilitating access to credit for small and medium-sized enterprises.
- Promoting research and development in the sector.
- Investing in skills training for workers.
By taking these measures, the government can help to revive the textile and apparel industry and create jobs for millions of people.
