Indian Textile Industry to reach new heights in 2 years

Vandita Jadeja

15 Jul 2017

The size of the Indian textile market is expected to reach $250 billion by the end of 2019, from $150 billion now. The textile commissioner mentioned that they see a tremendous potential of growth in the textile industry which is expected to reach new heights in the coming two years. The current domestic market is estimated at $110 billion while the exports at $40 billion.

A lot of buoyancy has been created in the past two years and various schemes have been launched that not only upgrade the technology but also allow ease of raising finance towards the sector. The center had announced a capital investment subsidy for segments like weaving, garment and technical textile and makeup, which has significantly helped the sector.

The center is also aiming to modernize the machines and add state of the art facilities which will help the sector grow. In addition, the government had announced Rs.6000 crore packages specially for this industry in 2016. Rebates on state levies have been introduced which will help encourage exports and there is an additional 10% subsidy for the garment and made up segments, which shows that the home textile industry will get a 25% capital investment subsidy on the purchase of new machines. This, in turn, will increase efficiency as well as modernize the sector. It will also provide an incentive to the industries, to use the latest technology and bring in new machines. Subsidies have proved to be beneficial in the past and have led to an increase in the employment as well as attracted huge investments.
 
With increased subsidies and various schemes offered by the Government, the textile industry can make the most of it and bring in new technology that will increase their production and also increase the cost efficiency. With constantly increasing exports, the industry will be able to cater to the growing domestic demand and generate new markets across the World. The textile industry should aim to utilize the schemes launched by the government for the benefit of the consumers. With the roll out of GST from this month, the government is aiming to bring in more merchants into the organized sector and to maintain an effective chain of input tax credit. Various merchants in the industry are still in the unorganized sector and GST will ensure that more individuals move towards the organized sector and ensure that the end user has to pay a lower price for the products. With input tax credit, the suppliers and the merchants will be able to gain credit on the tax paid and this will reduce the final cost for the consumer. GST aims to provide a strong hold to the textile industry in India.