Mr. Karan Singh, CEO and Founder of Aristobrat, says, “Under the leadership of the newly sworn-in government, there is potential for a pick-up in investment in the apparel sector. However, for this to happen, several key reforms and policy changes are necessary.
Over the past decade, the apparel industry has seen significant growth, but it has faced challenges that have prevented it from reaching its full potential. Many export businesses have moved to other countries like Vietnam, Cambodia, Bangladesh, and parts of Portugal, which offer advanced technology and favorable conditions. India, while having many supportive government schemes for the textile sector and encouraging foreign direct investment, still struggles with high import taxes on machinery for specialized fabrics. This makes it difficult for Indian manufacturers to acquire the technology needed to produce innovative fabrics and garments.
Mr. Singh highlights, “To boost the apparel sector, it would be beneficial for the government to consider lowering import duties on machinery for specialized fabrics. This will enable Indian manufacturers to access the necessary technology, improving their capabilities and competitiveness both domestically and internationally. By studying neighbouring nations, which invest in machinery to produce top-quality fabrics, India could enhance its textile industry and reclaim business lost to other nations.
Additionally, the government needs to address environmental concerns. The garment industry is a major contributor to global waste, and India, with its large manufacturing base and population, is a significant part of this issue. Stricter regulations, improved traceability, and better support for farmers could enhance sustainability in the sector.”
He adds, “The current government has been in power for 10 years, and while significant changes in the textile sector have been limited, there have been positive developments. The domestic market has seen good growth, largely driven by the D2C wave and investments from major conglomerates like TATA and Reliance, but exports have not fared as well. In key manufacturing hubs like Tirupur, many factories are struggling, with labor unions posing additional challenges to efficiency and productivity.
The “Make in India” initiative has set a very positive direction for the industry. By promoting domestic manufacturing, it has helped create a supportive environment for businesses. This initiative has the potential to transform India into a global manufacturing hub, boosting job creation and economic growth. With further improvements in policies and infrastructure, the apparel sector can benefit significantly from this movement.
For India to compete with larger countries and fully realize its potential in the apparel industry, the government must implement policies that address these core issues. This includes not only financial support but also ensuring access to advanced technology and creating a more conducive environment for manufacturing. The “Make in India” movement, combined with concrete steps at both policy and ground levels, can lead to long-term growth and competitiveness for the apparel sector
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