Home / Knowledge / News / Union Budget / FDI in Indian textile sector to grow 5-7%: Experts
FDI in Indian textile sector to grow 5-7%: Experts
04
Mar '13
Several international retail brands are planning to invest in Indian textile sector as the Central Government has announced many incentives, including tax exemptions, to the textile and garment industry in the Union Budget 2013-14. According to the textile industry experts, there will be 5-7 percent increase in foreign direct investment (FDI) with global brands such as Walmart, Hennes and Mauritz group (H&M), IKEA and Tesco planning to invest in Indian retail segment.
 
Mr. Prashant Agarwal, joint managing director of Wazir Advisors Pvt Ltd, told fibre2fashion, “With several incentives and tax exemption announced by the Finance Minister P Chidambaram in the Union Budget 2013-14, several multi-brand retail companies including Walmart, H&M, Tesco and IKEA have shown interest to invest in the Indian textile and garment industry.”
 
“The removal of excise duty on branded garments would mean low manufacturing cost of labeled clothing, which will increase competition in the apparel industry and encourage foreign investments in the sector. So, the textile and garment sector can expect a 5-7 percent increase in FDI by next financial year,” he informs.
 
According to Mr. Ashish Dikshit, CEO of Madura Fashion and Lifestyle, the Indian clothing and textile industry has witnessed a significant slowdown in the last two years due to combined impact of inflation and excise duty. “The new excise regime proposed in this budget would significantly ease the cost pressures in the industry. It should also bring cheer to consumers and encourage greater consumer spending through stabilization of prices in the category,” he adds.
 
“It is great to see the focus coming back on clothing and food – the two sectors that have been the backbone of the Indian economy,” says Mr. Kishore Biyani, Group CEO of Future Group.
 
He mentions, “The much needed measure of restoring the ‘zero excise duty route’ for clothing industry will not just revive the industry but will also create huge job opportunities. Other measures like setting up of Apparel Parks and continuation of TUFS will further strengthen the sector.”
 

Fibre2fashion News Desk - India


Must ReadView All

Pic: Shutterstock

Textiles | On 23rd Nov 2020

Japan aims to expand CPTPP trade pact

Japanese Prime Minister Yoshihide Suga recently said his country...

Pic: Shutterstock

Textiles | On 23rd Nov 2020

Bangladesh gets $256.5 mn from Green Climate Fund

Bangladesh recently received $256.5 million from the UN Green Climate ...

Pic: Mulberry

Apparel/Garments | On 23rd Nov 2020

Frasers raises Mulberry stake to 37%, considers offer

The Frasers Group, formerly called Sports Direct, recently announced...

Interviews View All

Textile industry, Head honchos

Textile industry
Head honchos

South India has a very strong manufacturing base

Karel Williams, Dow Microbial Control

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Kaizad Hansotia, GetNatty

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Anupam Chakrabarty,

Anupam Chakrabarty

Headquartered in Finland, Helsinki, Lindström Group is a textile rental...

Shyam Gupta & Ravi Gupta,

Shyam Gupta & Ravi Gupta

Based out of South Delhi, Gargee Designer's provides bespoke formal and...

Rajesh Vig & Ritu Vig,

Rajesh Vig & Ritu Vig

Rajesh Vig and Ritu Vig, promoters of the kidswear brand Happy Feet,...

Chunyi Zhi, City University of Hong Kong

Chunyi Zhi
City University of Hong Kong

<div><b>Chunyi Zhi</b>, associate professor in the Department of Materials ...

Shlomzion Chen, Seevix

Shlomzion Chen
Seevix

Seevix Material Sciences Ltd, which develops and manufactures synthetic...

Silke Brand-Kirsch, Schlegel und Partner

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Cigdem Akin, Cigdem Akin

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

Jay Ramrakhiani, Occasions Elegance Wear

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Robert Brunner, Devereux

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


November 2020

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


Advanced Search