Mumbai, Feb 24 : Banks must play a pivotal role in supporting the credit needs of India’s textile sector, which currently employs 5.4 crore people and is expected to grow from its current market size of $172 billion to $350 billion by 2030, according to Textile Commissioner Roop Rashi.
Speaking at the ‘Export Conclave’ organized by WTC Mumbai and YES Bank, Rashi expressed confidence that the sector could achieve this ambitious target ahead of schedule, provided it receives adequate financial backing. She underscored the importance of bank funding for key areas such as product standardization, capacity building, international branding, and export expansion.
“The textile value chain, from spinning to weaving, is highly capital-intensive and requires significant financial support. While banks often prioritize large-scale loans and project financing, I hope they will also recognize the importance of lending to textile units,” Rashi stated.
She emphasized that greater financial inclusion in the sector would benefit a vast number of small-scale textile businesses, particularly since 70% of handloom units are run by women. India remains a global leader in handmade textiles, contributing 95 out of every 100 such products worldwide.
Additionally, Rashi highlighted the need for India to lead in sustainable and circular economy practices, given that the country accounts for 16% of the world’s population. She urged banks to support textile firms in adopting new technologies, investing in R&D, and enhancing product differentiation through branding and labeling initiatives.
The government has also been actively promoting sustainable textile clusters, having supported over 47 patents in the textile value chain. However, Rashi stressed the need for commercializing these patents to maximize their impact.
Encouraging textile businesses to explore export opportunities in markets such as Southeast Asia, Japan, and South Korea, she pointed out that Japan, in particular, has shown renewed interest in Indian textile products in recent years.
Praveen Kumar, Joint DGFT at the Directorate General of Foreign Trade, Mumbai, urged MSMEs to leverage digitization efforts such as online self-generation of Electronic Bank Realization Certificates (E-BRCs), digital applications for certificates of origin, advance authorizations, EPCG, and export licenses for restricted items.
Dr. Vijay Kalantri, Chairman of WTC Mumbai, emphasized that with India’s annual goods exports currently standing at $440 billion, achieving the $1 trillion target will require addressing critical challenges faced by MSME exporters. He also highlighted WTC Mumbai’s role in empowering MSMEs and facilitating their growth in international markets. ( With inputs from IANS)