The textile industry in India is one of the largest employers after the agriculture sector and has been very significant to the country's GDP growth. However, for the last two years, the sector has faced some challenges due to GST, etc. The pandemic was another challenge. So, this year's festive season is important for the sector. Also, because the festive season is closely followed by the wedding season. The apparel industry usually witnesses a major boost this time every year, but, due to lockdowns, not many people bought apparel products. So, businesses are looking forward to this year's festive season. Additionally, the textile industry’s growth in this festive season will also help the country's struggling MSME sector.
However, there are challenges. Sanjay Jain, MD of T T Ltd. told the media, “Compared to last June 2020, the price of cotton has gone up by 50% in 2021. Farmers and traders have gained a lot. This is the trend internationally and in the domestic market too. Meanwhile, the yarn prices have gone up 50% keeping in tune with raw material price rise.” So, with a surge in the price of apparel products, it will certainly be a burden for the country's common citizens to buy more. But he is expecting the textile industry to gain better momentum in 2022.
The government has recently approved a Production-Linked Incentive (PLI) scheme for the man-made fibre-based apparel and 10 segments of technical textiles and allotted `10,683 crore to boost the textile industry. Additionally, the export-incentive schemes such as Remission of Duties and Taxes on Exported Products (RoDTEP) and Rebate of State and Central Taxes and Levies (RoSCTL) have helped the sector to grow throughout the year.
According to IBEF, the domestic textiles and apparel market's volume stood at around $100 billion in FY19, which is likely to grow to $190 billion by FY26. The festive season attributes much of it. Additionally, according to a recent report by the Investment Information and Credit Rating Agency (ICRA), “Textile exporters would experience 20-25% rise in business in the ongoing fiscal. Garments and textile industries account for the second-largest section of MSMEs in the state.”