“This will also catalyse another 35 million jobs and 200 billion dollars (over Rs 12,00,000 crores) of investments. The 500 billion dollars market figure consists of domestic sales of 315 billion dollars (over Rs 19,50,000 crores) and exports of 185 billion dollars (over Rs 11,45,000 crores). The current industry size comprises domestic market of 68 billion dollars and exports of 40 billion dollars,” said Prashant Agarwal, Joint Managing Director of Wazir Advisors. “We have belief that India is a goldmine for growth of textiles and apparel value chain, whose potential is yet to be fully tapped,” he added.
Agarwal further said that the government needs to give more support to the industry with specific focus on manmade fibre based textile value chain. According to him, immediate GST implementation to remove differential tax treatment to manmade fibres, creation of mega textile parks, single window system for FDIs, labour law reforms, extension of loan period in case of TUFS (Technology Upgradation Fund Scheme) and R&D promotion are some of the policy measures needed to boost the industry.
Indian market is also consuming more manmade fibre-based products as cotton prices are fluctuating unpredictably. Also global brands are setting up more shops here and market share of women's wear is increasing and private labels are gaining prominence in organised retail. India may start consuming more polyester than cotton in the next five years, which will increase the market size of polyester fibre by 1,500 thousand tonnes, the report said.
Wazir & PCI have decided to set up Polyester Textile Investment Promotion Cell, which will support Indian and overseas manufactures to know more about the sector, identify investment opportunities and form joint ventures.