Like 2022, 2023 will be a good year for Indian textile industry

We should be thankful as 2022 was a successful year for the Indian textile industry and I have no doubt that 2023 will be even more beneficial for our trade.

There were headwinds like global recessionary trends, Russia-Ukraine war, volatility in raw material prices, high inflation and now again increasing Covid-19 cases and that too in many countries.

But we got FTAs with significant markets like UAE, Australia; schemes like Production linked Incentive (PLI), and significant development has been done with regard to PM Mega Integrated Textile Region and Apparel (PM MITRA) scheme.

Similar steps will be growth engines in 2023 as we can have FTA with the UK and hopefully with Canada also. PLI 2.0 will be unveiled in 2023 an under PM MITRA scheme, state-wise allocation of all 7 parks is also to be announced. So this year is also going to be a positive year for our trade.

We need to see these developments in a combination with FTAs are creating market opportunities for entire textile value chain, above mentioned Government schemes will help to create capacity, scale of production. And as the Government focus is to promote competitive manufacturing, with volume production, cost will naturally come down.

It is not that these development are going to benefit only the industry at the export front, Indian market will also receiving the benefits of these like that allowing the import of 51,000 metric tons of duty-free cotton from January 2023 and 419 metric tons of duty-free cotton from December 29-31, 2022, from Australia would benefit the cotton textiles value chain. It is significant as Indian textile industry has started facing the shortage of quality cotton with the increased demand.

New Year is knocking the door with high hope as well as the unpredictable factors as we can't be sure that how long and serious covid-19 will be at the global level but as world has learn a lot from previous experience and this time Governments are also proactive, it will not be wrong to anticipate that risk should be minimise. Especially in India, when we have the golden opportunity of G20 presidency. In fact this is an occasion to show the India's strengths in textile trade, right from our rich heritage of handloom and handicrafts to industry's stronghold on sustainable practices. Apart from the events or initiatives led by the Government during the G-20 presidency, Trade bodies, as well as companies, should come forward to use this opportunity with their overseas partners. This can be a good platform to convey India's capabilities to global brands and have better business relations, explore more business opportunities with new companies as well.

We must appreciate our leadership as this year has seen the maximum meetings of the industry with the Ministry of Textiles and this regular communication has helped the industry to get a confidence that Government is with them, supporting them not only with major policy-level matters but also as and when whatever interventions are required. With all these initiatives, steps and most important the resilience of our industry we are in right direction towards to achieve the envisaged exports of $100 billion and also the total textile business size of $350 billion in a span of five to six years.

But need of the hour is to continue to momentum and to get maximum advantage of current global conditions as our competitive countries are also aggressively working towards to increase their share in global textile trade. At the same time domestic market will be creating more demand as experts has said that India will perhaps emerge as the strongest major economy with 7 per cent growth rate in FY23 amid the fears of the world slipping into recession.

And this reflects in the with regard to textile value chain as global brands are continuously entering into Indian market and overseas manufacturers are also now coming forward to invest in India. From 2017-2022, Indian textile industry had FDI of $1.5 billion.

In 2023, India will launch its national retail policy and the upcoming budget will be the last full-year budget from the government ahead of the Lok Sabha elections due in early 2024 so, I don't see any reason that there will be any lack from the Government side to support the Indian market, consumer sentiments.

So we must see more capex and revenue for the industry in the year of optimism and opportunities. There can't be a better beginning of the New Year with the high hopes of growth.

(The author owns a garment manufacturing setup in a rural area, which employs mostly women workers)