Industry officials have emphasized the need for the Indian textile and clothing sector to adopt a comprehensive, long-term strategy to seize opportunities in the global market. The Chairman of the Southern India Mills Association (SIMA), S K Sundararaman, pointed out that the industry has recently grappled with challenges related to structural issues in raw materials, rising production costs, and operational scale concerns, among others.
Addressing these challenges, Sundararaman stated that the industry association is committed to providing support to tackle these issues and enhance global competitiveness. He highlighted that the textile and clothing sector is the second-largest employment provider in India, following agriculture. Additionally, the industry has contributed significantly to the country’s economy, generating Goods and Services Tax revenue of Rs 30,000 crore and foreign exchange earnings of approximately $44 billion.
Officials from the association also acknowledged that the current NDA government has taken steps to boost the competitiveness of the textiles and clothing industry and address its challenges.
However, Sundararaman noted, “Policy challenges in certain areas and delays in strengthening the raw material base, as well as delayed government dues refunds, have hindered the industry’s ability to achieve sustained growth.” He emphasized that while state governments offer attractive incentives, there is often a significant delay in delivering promised benefits, causing severe financial stress for the industry.
Expanding on these issues, he emphasized the necessity of adopting a holistic, long-term approach to not only fill the void left by China in the textile trade but also to achieve sustained growth.
Sundararaman called on the Union Minister of Textiles, Piyush Goyal, to consider exemptions for viscose staple fibre (VSF) imported under the Advance Authorisation scheme, particularly for fibers that are not currently manufactured in the country.
He expressed optimism regarding the free trade agreement with the United Kingdom and the European Union, believing it could help India double its textile exports. Sundararaman was unanimously chosen to lead SIMA for the year 2023-24. He also serves as the managing director of Shiva Texyarn Ltd. in Coimbatore, Tamil Nadu.
