A recent meeting between Hemant Jain, Managing Director of KLJ Group and president of PHD Chamber of Commerce and Industry (PHDCCI), and Finance Minister Nirmala Sitharaman has brought textile industry concerns to the forefront of economic discussions. Jain advocated for strategic measures to bolster growth, with a particular emphasis on easing the burden on businesses, including those in the textile sector.
Jain stressed the importance of a simplified tax structure for individuals, businesses, and LLPs, which would directly benefit textile manufacturers and related enterprises. He also proposed expanding the Production Linked Incentive (PLI) scheme, a program designed to incentivize domestic manufacturing, beyond its current 14 sectors. This expansion could offer significant support to the textile industry, encouraging investment and boosting production.
“Lowering compliance costs and focusing on ease of doing business at the factory level are critical for growth,” Jain emphasized. This is particularly relevant to the textile industry, which often involves complex supply chains and intricate production processes. Streamlining regulations and reducing bureaucratic hurdles could significantly enhance the competitiveness of textile businesses.
Beyond tax and incentives, Jain highlighted the need for improvements directly impacting the textile sector:
- Workforce Upskilling: Investing in training and development programs to equip textile workers with the latest skills and technologies is crucial for modernization and efficiency.
- Infrastructure Development: Upgrading infrastructure, including transportation and logistics networks, is essential for the efficient movement of raw materials and finished textile products.
- Sustainable Practices: Jain advocated for aligning industry needs with environmental goals through public-private partnerships and green technologies. This includes promoting sustainable textile production methods, reducing waste, and minimizing environmental impact.
Jain further elaborated on the challenges faced by manufacturers, including high costs of capital, power, logistics, land, and compliance. He also highlighted the need to boost MSMEs, a significant segment within the textile industry, and ensure effective implementation of existing reforms at the ground level.
Regarding global competitiveness, Jain emphasized the importance of increased investment, employment creation, and accelerating export-oriented production within the textile sector. He also stressed the need for a robust logistics industry to support both exports and the reliable and affordable import of essential materials for textile production.
In conclusion, Jain’s recommendations offer a comprehensive roadmap for boosting economic growth, with a strong focus on addressing the specific needs and challenges of the textile industry. By simplifying regulations, investing in workforce development and infrastructure, and promoting sustainable practices, the Indian textile sector can enhance its competitiveness and contribute significantly to the nation’s economic growth.
