Page 44 - Banking Finance July 2017

ARTICLE

CAGR of 9.6 per cent during FY14-23 to USD32 billion in FY23.
India is expected to be a key growth market for the techni-
cal textile sector due to cost-effectiveness, durability and
versatility of technical textiles. The government has sup-
ported the technical textile industry with an allotment of
USD1 billion for SMEs and an exemption in custom duty for
raw materials used by the sector

manpower and cost of production over major textile
Source: Ministry of Commerce and Industry, DIPP, TechSci producers across globe.
Research, 2015-16
Y Presence of entire value chain for textile production
* FY16 - Till Sep.'15
beginning from production of natural fibre to the pro-
duction of yarn, fabric and apparel within the country
Indian textile industry experienced noticeable growth in
which should prove a major asset in the years to come
FY15, as FDI increased to USD1587.83 million in FY15 from
over countries like Vietnam, Bangladesh etc.
USD1424.92 million in FY14. In addition, till September'15
FDI inflow in textile industry stood at USD1771.06 million. Y Readily available market which is poised to grow in fu-
During FY10-15, FDI in textiles and apparel industry grew ture with increased penetration of organized retail,
at a CAGR of 14.21 per cent the textiles industry in India is favourable demographics and rising income levels.
experiencing a significant increase in collaboration between Y Increasing investments, vertical integration, manufac-
global majors and domestic companies turing excellence, diversity in product mix, increasing

per capita income has made the Indian textile and ap-
Initiative undertaken by the Govern- parel sector start-ups competitive.
ment Y Diversification of Exports in terms of Products and Mar-
The Government of India aims to promote textiles, appar- kets and promoting innovation and Research and De-
els and handicrafts under various schemes by providing suit- velopment which will help to improve the quantity as
able fiscal incentives by giving tax rebates, interest subven- well as quality of production.
tion, capital subsidies and promotion of skill development.
Y Technology Upgradation Fund scheme (TUFS).
Challenges to be faced by the textile
Y Setting of Apparel Training and Design Centres (ATDCs).
start-ups in India
Y 100% FDI in textile sector under automatic route.
Despite the huge success and several opportunities, textile
Y Scheme of Integrated Textile Parks (SITP).
start-ups in India are not free from external and internal
hindrances which can put obstacles on the growth march.
Opportunities of the textile start-ups in
India The challenges -

Y Comparative advantage in terms of skilled low cost a) Unavailability or lack of proper infrastructure poor in-

44 | 2017 | JULY | BANKING FINANCE

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