Is it a good time to be a textile company in India? After several beneficial provisions in the Union Budget, industry experts certainly think so. Textile companies in India are bullish on new reforms announced in the Budget including proposed SEZ reforms, an increasing emphasis on exports along with reforms in the SEZ customs structures, thereby enabling easier business operations. Customs exemptions will be reviewed and simplification of tariffs will take place, making it easier for textiles.
In another possible boost for textile manufacturing companies, exemptions will be provided on things like trimming, embellishment, fasteners, zippers, buttons, lining materials, leather, packaging boxes, and furniture fittings required by exporters and producers of textiles, handicrafts, garments and leather footwear.
Textile companies in India to hit the next boom
Every leading textile company in the country will benefit from several pro-active reforms and other positive industry trends as per several reports. Textile manufacturing companies are steadily emerging from their COVID-19 induced slump while also overcoming issues like shortages of labor and increasing global prices of cotton. However, reports still forecast possibilities of the textile sector increasing exports to $100 billion from $40 billion in only five years. The apparel industry may also emphasize vertical integration for scaling up its overall size and also benefiting from the PLI (production-linked incentive) scheme as well.
Another reform that may help companies is the PM MITRA or the Prime Minister Mega Integrated Textile Region. Textiles have always been priorities for the Government. Demand continues to be high globally and industry experts feel that greater efficiency will help the sector move ahead. This increase in exports along with rising domestic consumption looks set to usher in an era of positive tidings for textile companies in India.
One of the foremost textile manufacturing companies in the country, Welspun India, is not just diversifying its offerings and ramping up scale, but also taking several innovative measures which promise to be the need of the hour. Welspun India has issued its firm commitment towards meeting the SBTi or Science Based Targets Initiative of net-zero standard and business ambition for 1.5 °C with a view towards combating GHG emission levels. The SBTi action statement calls for a global network of businesses and industry players to partner with agencies from the United Nations in aiming to achieve net-zero emissions. Welspun India is not only dedicated towards achieving this target, it is also laying out the blueprint for de-carbonization along with lowering overall emissions throughout the entire ecosystem.
This will cover greenhouse gas emission reduction methods through periodic inventory reviews, an increase in sourcing of renewable energy annually, identification of climate-linked business risks and reporting the same and more. The company has also garnered the ISO 14001 certifications for its production units while having established solid systems for environment management with a view towards ensuring environment-friendly functionality. Welspun India is one of the world's biggest exporters and manufacturers of bed and bath textile products with the portfolio covering bed linen, terry towels, bathrobes, rugs, and a lot more.