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Home News Indian Apparel Sector Seeks Policy Boost Amidst Global Shifts

Indian Apparel Sector Seeks Policy Boost Amidst Global Shifts

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Indian Apparel Sector Seeks Policy Boost Amidst Global Shifts

The Indian apparel and textile industry, a significant contributor to the nation’s economy and exports, is navigating a complex global landscape. Recent years have presented challenges, including supply chain disruptions and geopolitical instability. Industry leaders are advocating for increased government support to capitalize on emerging opportunities.

Key priorities include the expansion of the Production Linked Incentive (PLI) scheme to encompass all garment types with reduced investment thresholds. This initiative aims to stimulate investment and significantly increase production capacity. Recognizing the unique needs of micro-industries, a revival of the Amended Technology Upgradation Fund scheme is also sought to facilitate technological advancements.

Addressing fabric sourcing challenges, the industry is requesting greater flexibility, acknowledging the current reliance on imported man-made fibres. Labour support during peak seasons and alignment of domestic wages with international standards are also under discussion.

Budgetary requests include the continuation and enhancement of the interest equalization scheme to mitigate the high cost of capital. Extending concessional tax rates for new manufacturing units is also proposed to incentivize growth.

With increasing emphasis on Environmental, Social, and Governance (ESG) compliance in international markets, the industry is urging the government to support sustainable manufacturing practices. A proposed “Green Transformation Scheme” would provide access to long-term, low-interest loans for upgrading machinery and infrastructure.

Despite global headwinds, Indian apparel exports have demonstrated positive growth in recent months, particularly in Free Trade Agreement (FTA) markets. The industry remains optimistic about long-term prospects. The ongoing situation in Bangladesh has also presented opportunities for Indian manufacturers, with some global brands reportedly seeking alternative sourcing options. India is positioned to attract potential investments due to its relative stability.