Garment sector hopeful of achieving growth in 2021, says industry body

Garment sector hopeful of achieving growth in 2021, says industry body

With COVID-19 making the year 2020 a year of learning and turbulence, the textile and sector is confident of achieving the much needed growth in 2021.

The sector can make 2021 a year of progress by focusing on USA for apparels, as the had benefited from the volumes in the market in the first 10 months of 2020, Indian Texpreneurs Federation (ITF) convenor Prabhu Dhamodharan said on Saturday.

“Now, its time to step up the efforts to repeat the same success in the US market for our products,” he said.

Vietnams Free Trade Agreement (FTA) with the European Union would intensify competition for India, and at the same time a level-playing field with top competing nations for the US market in terms of duty combined with quick economic recovery make a compelling case for Indian sector for immediate growth, he said.

“We need to intensify efforts and focus on all levels, including those at the government, cluster and companies to grab our share in the US markets,” he said.

Stressing on value addition with new capex, he said using the low-interest and easy liquidity combined with robust demand during post-COVID-19 times, the sector can hit the target of 20 per cent increase in per product revenue.

The sector should use the forthcoming production- linked incentive scheme as the stepping stone for much-needed product diversification and innovation to attract global buyers, the convenor said.

Stating that all manufacturing units need to invest in technology adoption and digital initiatives, he said to equip the industry and eco system, culture-building of having an agile mindset is the forward to institutionalise the success.

The industry is currently managing the trade well with sufficient liquidity due to infusion of funds in the system with Central governments Emergency Credit Line Guaranteed Scheme, he said.

The sector needs to utilise the opportunity to maintain the financial discipline to work on shorter credit terms across the value chain to improve the business performance and sustain the recovery momentum, he said.

As a dynamic textile association, ITF would enable the strategies in line with these focus areas with its member companies and work towards the theme and goal of 2021 ‘A Year of Progress for the Textile and Apparel Sector’, he said.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor