The rating agency said India is currently on the cusp of a potential growth cycle in the global textile market. Apart from the trade war issues between the US and China, the China Plus One sourcing policy endorsed by several major consuming regions around the world, to reduce risk during events such as the Covid-19 pandemic , and growing concerns about the use of Xinjiang cotton are fueling this situation. opportunity.
While China is currently the leader in the global textile market and is likely to lose share in the short to medium term, India remains one of the potential beneficiaries of this change. Nonetheless, challenges remain intense in the form of competition from other low-cost/more efficient peer nations, the changing landscape of free trade agreements with some peers already enjoying duty-free access to some of the major markets, as well as national issues such as infrastructure bottlenecks.
He added: “The focus is probably more on the synthetic fiber (MMF) value chain, the apparel and technical textiles segments, which offer immense growth opportunities in global trade, and where India has been lagging behind so far. Doing India for the World, the government has adopted several policy initiatives including the announcement of the PLI scheme, the extension of the Reimbursement Scheme for State and Central Taxes and Levies (RoSCTL) for garments and garments for three years, the announcement of the Duty and Tax Rebate Rates on Exported Products (RoDTEP) for other textile segments and notification of seven textile parks under the PM-MITRA program, in the past year Although the policy initiatives are all steps in the right direction, effective implementation remains crucial, for which adequate provisioning in the budget is necessary.”
Furthermore, since the implementation period of the ATUFS ends in March 2022, its extension or the announcement of a new system, in particular for the downstream segments and/or for the captive capacities of renewable energy, could encourage investment and allow companies to reduce their carbon footprint while being more profitable”