July 13, 2024

PLI Scheme Expanded to Boost Garment Sector, Announces Union Minister

Union Textiles Minister Giriraj Singh announced the expansion of the Rs 10,000 crore Production Linked Incentive (PLI) scheme to the garment sector, aiming to boost domestic manufacturing and exports. This announcement was made during his inaugural address at the India International Garment Fair (IIGF) at the Yashobhoomi Convention Centre.

Singh emphasized the government’s commitment to reviving the Scheme for Integrated Textile Parks (SITP) to create parks that meet international standards. The focus will also be on promoting green textiles and revamping existing textile parks. Additionally, plans are in place to develop small clusters to support smaller players in the ready-made garment industry and boost exports.

The PLI scheme has been highly successful in the electronics sector, significantly increasing India’s production and export of electronic goods, such as smartphones. Singh urged the textile industry to adopt the ‘hub and spoke’ model to enhance domestic manufacturing and emphasized the importance of establishing strong Indian brands.

“Developing world-class manufacturing facilities is crucial to realizing the Prime Minister’s vision of ‘Make in India’ with ‘Zero Effect; Zero Defect’ at every level of the value chain,” Singh stated.

The International Garment Fair provides a unique marketing platform for micro, small, and medium exporters to showcase India’s latest trends and diverse offerings to the global market.

“Today, India is one of the fastest-growing economies in the world with a GDP growth rate of 7.2 percent, and it is expected to become the third-largest economy by 2027-28,” Singh noted. He attributed this growth to a positive domestic outlook and a growth-oriented political establishment, which has created a conducive ecosystem for business in India.

The minister highlighted several measures taken by the government to enhance infrastructure and ease of doing business. He stated that the Indian apparel and textiles market, currently valued at $165 billion, aims to reach $350 billion. “I urge you to achieve $50 billion by 2030,” he added. Singh also mentioned the Prime Minister’s roadmap to promote technical fibers and geotextiles, offering significant growth opportunities.

“I see our competition not as Bangladesh but ahead of China in the future,” he remarked.

Sudhir Sekhri, Chairman of AEPC, acknowledged the impact of global headwinds on Indian apparel exports but noted that the industry managed to contain the damage to a great extent. Mithileshwar Thakur, Secretary General, expressed optimism about Indian apparel exporters expanding their footprint in developed countries in the coming years.

The Indian apparel industry is encouraged to seize this opportunity and aim for substantial growth. Knowledge sessions on topics like navigating global trade are being organized on the sidelines of the event on June 25 and 26. The 71st Edition of the fair, running from June 25 to 27, 2024, will feature more than 600 buyers from 50 countries and host two fashion shows each day, showcasing the best collections exhibited during the event.

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