The Indian government encourages private capital to enter the textile industry

by:JIYALI     2021-07-31
The Indian Chamber of Commerce and Industry (ASSOCHAM) strongly recommends that large global enterprises and private capital establish partnerships with small and medium-sized textile companies in India to promote the development of the textile industry, because the expansion of the Indian textile industry's production capacity, technological updates and installation of new machinery require new investment .   The sharp appreciation of the rupee has made the textile industry a victim. At the same time, strict labor laws, backward technology, imperfect technical facilities, and lack of iconic brands have caused the textile industry to lose growth potential and lose its competitiveness in the international market.   ASSOCHAM President Venugopal N Dhoot said that the government should provide appropriate financial incentives to investors who are interested in investing in textile and apparel companies to increase the attractiveness of the textile industry.   ASSOCHAM Research Bureau submitted to the government a report on the relationship between Indian textiles and the world. The report recommended that the government formulate a five-year plan to cooperate with the textile industry and trade unions to amend relevant laws to achieve the comprehensive development of the textile industry and human resources in stages.   The government recently announced that textile exports have been reduced by 22% since April this year, and job opportunities have been reduced by about 2 million, because textile companies cannot afford the appreciation of the rupee.   The appreciation of the rupee has led to a sharp drop in the exports of textile companies. The report stated that India’s textile and apparel exports are highly concentrated in the US and EU markets, while there are huge strategic expansion opportunities in the Middle East, North Africa, and Sub-Saharan Africa. However, it is currently a special period. New risk speculation requires a large amount of investment, special financial Monetary incentive policies.   Large textile companies are facing pressure from a lack of experts with technical knowledge and trade experts. They urged the government to establish a national textile education and training institution to train technical talents in accordance with the model of the National Institute of Fashion Technology.   The report revealed that the transaction costs of textile companies are too high because they lack sufficient air and sea transportation, electricity, and logistics conditions. The report warned that the removal of restrictions on Chinese exports in 2008 will intensify competition in the international market.
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