Home / Knowledge / News / Textiles / Govt support crucial for Indian textile-apparel industry

Govt support crucial for Indian textile-apparel industry

Apr '20
Pic: Shutterstock
Pic: Shutterstock
Support from the government would be crucial to revive the Indian textile and apparel industry during the current COVID-19 crisis and the post-lockdown phase, according to stakeholders. The industry, which mainly consists of micro, small and medium enterprises (MSMEs) faces working capital and other constraints due to unexpected order cancellations.
In response to Fibre2Fashion's email for recommendations to government for steps to be taken to support the textile-garment industry, Vardhman Textiles general manager Mukesh Bansal said, "The industry is under tremendous pressure owing to two major issues—constraint of working capital, and burden of fixed cost during the lockdown period."
The constraint of working capital is because payments are not being released by the brands, which are also facing working capital crunch. "To combat this, government can finance the industry for next 12-18 months via lower rate of interest and extra funds," suggested Bansal.
Speaking about the burden of fixed cost, Bansal said, "the major fixed cost for industry during the lockdown is wages of labour. Government can support the industry in this by enabling the employers to pay wages to the labour via financial assistance."
Government can provide financial assistance by bringing down borrowing cost from bank "down to 6 per cent from current level of 12 per cent," said Trigger Apparels Limited director-Marketing Rajagopalan.
Besides adhoc limits, the government and the RBI should instruct the banks "to liberalise repayment of loans, interest rates and debts, etc," said Rajiv Dewan, president, Garment Exporters Association of Rajasthan (GEAR).
According to Rajagopalan, the government can support the industry by making single GST slab of 5 per cent for all categories of products, removing income tax for the next 3 years, making all cash transactions legal with a 5 per cent cash tax on all such transactions, providing salary subsidy for lockdown period, making health and education free for all, and allowing industry to work in 3 shifts to boost employment.
GEAR's Dewan has already written to Prime Minister Narendra Modi sharing four basic mantras to revive the industry without providing any subsidy or compensation. First, through its good offices the government should initiate discussion with the domestic branded retailers, chain stores & buyers to support the garment industry.
Second, the government should immediately settle all claims pending and dues outstanding against government liabilities for GST / IGST / ROSL / MEIS / DBK and other schemes. And till the time all outstanding amount is released, adhoc limits to 90 per cent of value due against government receivables should be immediately made available with banks against simple application and statements of government dues.
Third, the government should instruct banks / RBI to extend complete liberalisation to the garment industry, as timely bank support will enable the industry to sustain during present and future COVID-19 impact.
Lastly, Dewan has suggested that the government give complete rebate on income tax for a period of three years, collect only 20 per cent in the fourth year, and gradually increase the collection percentage till the eighth year when it can collect 100 per cent income tax.

Fibre2Fashion News Desk (RKS)

Must ReadView All

UK Prime Minister Boris Johnson (Right) in virtual conversation with New Zealand PM Jacinda Ardern Pic: GOV.UK

Textiles | On 21st Oct 2021

UK, New Zealand agree to comprehensive trade agreement

The UK and New Zealand have agreed to a comprehensive trade agreement ...

Pic: Shutterstock

Textiles | On 21st Oct 2021

China's FDI inflow up by 19.6% in first 9 months of 2021

Foreign direct investment (FDI) into the Chinese mainland, in actual...

Pic: Shutterstock

Textiles | On 21st Oct 2021

India’s cotton consumption to rise in market year 2021-22

The highly competitive prices of Indian cotton fibres in the global...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Blockchains will be in heavy use by early adopters by 2025

Textile Industry, Head honchos

Textile Industry
Head honchos

Blockchain is not a silver bullet for each and every problem in supply...

Textile Industry, Head honchos

Textile Industry
Head honchos

Liquidity is a primary issue in Indian context

Daniele Uboldi,

Daniele Uboldi

EptaInks is the screen-printing division of Eptanova, a company that...

J Vargas,

J Vargas

With a vision to be the world's top tier textile manufacturer, Badjatex...

Kriti Kanodia,

Kriti Kanodia

A TV show in 2012 where actor Sonam Kapoor customises her own pair of...

Wolfgang Plasser, Lenzing AG

Wolfgang Plasser
Lenzing AG

The Lenzing Group is an international company headquartered in Austria...

Seth Casden, Hologenix

Seth Casden

Hologenix is a material sciences company dedicated to developing products...

Silverio Baranzano, Fitesa

Silverio Baranzano

Fitesa is a leader in the nonwoven fabrics industry, specialising in...

Anjali Bhaskar, Samatvam

Anjali Bhaskar

Samatvam, a womenswear brand that blends age-old craftsmanship with modern ...

Ramya Rao & Kavea R Chavali, Kalaneca

Ramya Rao & Kavea R Chavali

<div>The journey of Kalaneca (kala-Art, Neca- Nikaah) formally began in...

Archana Jaju, Label Archana Jaju

Archana Jaju
Label Archana Jaju

<b>Archana Jaju</b>’s Hyderabad-based eponymous label works with artisans...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

October 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

Advanced Search