Ahead of the Budget, Union Finance Minister Nirmala Sitharaman has tabled the Economic Survey in Parliament. The Economic Survey is an important document that typically precedes the Union Budget presentation. It offers a forecast for the upcoming fiscal year in addition to an evaluation of the current economic year.
According to the economic survey, India’s GDP is expected to expand by 6.4 per cent in FY 25.
In order to counter the potential impact of upcoming global policy changes on the trade of industries like textiles, the industry should concentrate on expanding its market share in the medium term and diversifying its export markets in the short term, according to the survey.
In 2023, eight of the top ten textile exports (by value) were made up of cotton and cotton-based items, representing a lopsided export basket for India.
Complex procedures, such as the need to carefully account for each square centimetre of fabric, buttons, and zippers used, place restrictions on Indian exporters. Similar to this, imports of textiles must have pre-shipment inspection certifications, which slows down logistics and increases expenses for the textile industry. In addition, Indian clothing exports face a fair playing field when compared to rivals.
According to the report, a global structural shift towards sustainable sourcing would likely generate cost increases for the textile industry in the upcoming years. In the upcoming years, procurement officers intend to get more textiles from Bangladesh, Vietnam, and India.
Limited foreign direct investment has been drawn to India’s textile industry, impeding technological progress and increasing dependency on imported textile machinery. There is still a sizable talent gap that limits creativity and production.
The Man-Made Fibres (MMF) industry must transition to vertical integration and make large investments in R&D and sustainable production methods if it hopes to match the calibre of India’s competitors and benefit from MMF production.
The chairman of the AEPC, Sudhir Sekhri, commented on the economic survey that was delivered by Finance Minister Nirmala Sitharaman, saying that it is progressive, growth-oriented, and forward-looking. He added that the Economic Survey also outlines the country’s problems and offers a reform and growth strategy. Stability and trust are reflected in the industry’s anticipation of progressive reforms and policy consistency.
AEPC Secretary General Mithileshwar Thakur said the economic assessment reflects the government’s commitment to making India a developed country. A thorough, data-driven summary of the nation’s economic health, current state, and future course has been given by this year’s study. Policymakers will undoubtedly find the economic survey’s observations useful in developing equitable policies for our nation.
