New textiles policy could help India emerge as manufacturing and exporting hub

The textile industry has been one of the leading employment generators in our country. It plays a significant role in Indian economy by providing direct employment to an estimated 35 million people, by contributing 4 per cent of GDP and accounting for 35 per cent of gross export earnings.

The crisis that the industry was facing for the past four years has finally been acknowledged and significant reforms have been made to help the sector see its true glory. The outlay of ₹1,480 crore for technical textiles will help the sector develop skills in technological development, boost exports and ensure cost effective ways of production.

The abolition of anti-dumping duty on PTA will immensely benefit synthetic yarn spinners and downstream segments like fabrics and garments including furnishing fabrics made from polyester and blended yarns.

With easing up business operations and aiding technological developments, government is opening other avenues for indigenous manufacturers. Simpler procedures will enable textile companies to invest in product extensions. 

Finance Minister has announced a decision to rearrange customs duty on 300 products to promote domestic manufacturing. On raw materials customs duty has been hiked from 15 per cent to 20 per cent to protect labour intensive MSME sectors.

With imports being drastically cut down, there is less opportunity for new entrants and that strengthens the position of local players. Therefore, there are good tidings expected for the textile industry from a consumption, employment generation and boosting demand standpoint.