Sarees, suits, man-made fiber (MMF) garments as well as premium cotton garments are set to get cheaper shades with nominal price cuts. With the introduction of incentives for textile manufacturing, textile and apparel makers are expected to feel some relief in textile and apparel prices, although the impact is unlikely to be immediate.“These announcements will enable improvement in technology and quality for domestic and export markets. Efficiently managed costs will help manufacturers offer better prices to customers for apparel and textile products,” said Nikhil Madari, President, South Gujarat Chamber of Commerce and Industry.
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At the same time, the continued duty exemption on long-staple cotton will keep premium cotton clothing affordable.
Logistical efficiency is also expected to play a role in easing pricing pressures, albeit in the long term. The proposed dedicated freight corridor linking Dankuni in West Bengal to Surat will help reduce transportation costs and improve market access for the MMF hub, benefits that could gradually be reflected in consumer prices.Major announcements such as the Samarth 2.0 scheme to modernize the textile skills ecosystem; Establishment of mega textile parks in Mission Mode and National Fiber Scheme will help improve manufacturing efficiency.
The Textile Sector Expansion and Employment Program and the Eco-Tex initiative will help absorb cost pressures.“The package will help modernize the sector and improve efficiency across the value chain. The enhanced scale and productivity can give consumers access to better quality textiles at stable prices over time,” said Rahul Mehta, chief mentor, Association of Apparel Manufacturers of India.Supporting small players and weavers will also indirectly benefit consumers.
