Apparel April 2019 Apparel May 2019 issue | Page 31

FEATURE
votes with little or no long-term benefits. However,
before we analyse the impact of these offerings,
we need to set the context of their relevance in
the current economic scenario.
THE STATUS QUO
Despite the challenging few years faced by the
Indian apparel industry, the nation’s position
remains that of a world leader. By being a major
producer of raw materials, processed goods and
manufacturing units, India is still a trusted and
reliable part of the global apparel value chain.
For India, this position has always been critical
since the domestic textile and apparel trade
constitutes nearly two per cent of the national
Gross Domestic Product (GDP) and accounts for
about 14 per cent of all industrial production in
the nation, which contributes about nine per cent
of the global consumption of technical textiles.
Moreover, the industry is also responsible for
contributing 27 per cent of the nation’s foreign
exchange inflows that lead to 13 per cent of
the nation’s export earnings that is estimated to
reach US$300 billion by 2024. In addition, the
industry has continued to grow its foreign direct
investment and has doubled its FDI share to
DESPITE THE CHALLENGING FEW
YEARS FACED BY THE INDIAN
APPAREL INDUSTRY, THE NATION’S
POSITION REMAINS THAT OF A
WORLD LEADER.
US$618 million in 2017 from US$230 million in
2016. This global faith in India’s industry has
been instrumental in gainfully employing nearly
50 million people and working across a highly
diversified range of segments, from knitwear
and handicrafts to synthetic products. The
combination of capital and labour-intensive
requirements has made it a great place for
employment, growth, trade, and manufacturing.
Given this role of the industry, it’s clearly not
a coincidence that this year’s elections were
foreshadowed by major political parties, in power
and contesting for power, announcing numerous
schemes and benefits for the industry. The
Government in particular launched new schemes
such as the Rebate of State and Central Taxes
and Levies on the export of garments and made-
APPAREL
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May 2019
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