Apparel April 2019 Apparel April 2019 issue | Page 38

INDUSTRY INSIGHTS
THE POLICY ALSO ADDRESSES
DOMESTIC AND INTERNATIONAL
FINANCING BY ADDRESSING
VARIOUS DIGITAL TECHNOLOGIES
IN FINANCE SUCH AS A PLATFORM
FOR PEER-TO-PEER LENDING.
despite the goal of lower cost of power, there
are also incentives to drive renewable energy,
which further acts to create a sustainable industry
sector. The policy also addresses domestic and
international financing by addressing various
digital technologies in finance such as a platform
for peer-to-peer lending.
Brexit in Europe.
On a broad scale, the draft industrial policy
is aimed towards directing industrial production
towards three primary goals: to create domestic
jobs at higher rates over the next 20 years; to
promote the transfer of technology from overseas,
and to attract over US$100 billion in foreign direct
investment annually. Moreover, in order to support
these goals, the policy also proposes significant
regulatory reforms directed at making business in
India more competitive. This evolution addresses
every aspect of industrial operations such as the
cost of power and land reform. All these aspects
directly impact the apparel industry as it is a
labour-intensive industry that requires global funds
and technology to expand and grow. Moreover,
32
I APPAREL I
April 2019
GROWTH IN STABILITY
In essence, the overall goal of the New Industrial
Policy is to not simply set up guidelines for
investments and regulations, but to also reinvent
the nature of how industry operates in India.
The policy proposes a framework that brings
together long-term growth that can take India’s
29 per cent GDP industrial share and push it to
China’s 44 per cent level in the next 20 years. A
large part of this is also proposed to be based on
encouraging research and development within
the country that connects academia and industry.
This form of networked innovation is expected to
be backed up by a revision of intellectual property
rights which further secures India’s intellectual
capital over the next 50 years.
It’s important to note that India exists as the
third largest economic power in the world but
is surrounded by challenges that stem from our
social and political climate. The only way for India
to achieve a US$10 trillion economy in the next
15 years is to secure an equitable, peaceful and
socially harmonious marketplace where human
capital and innovation can be nurtured. Under
the ideal scenario, the proposed industrial policy
has the potential to take India’s manufacturing
sector to US$1 trillion that enables the Indian
apparel industry to take on a US$300 billion
export opportunity in the next few years. In this
respect, the apparel industry can expect the New
Industrial Policy of 2019-20 to radically change
the business landscape and bring it one step
closer to achieving its full potential.