Indian Textile industry and MSME Development
The Indian Textile Industry, which dates back several centuries, is possibly the most well-established in the Indian economy. The business is popular, with hand-spun and hand-woven textiles on one end of the spectrum and capital-intensive spinning mills on the other. The most important section of the textile industry is formed by decentralizing power looms/hosiery and the knitting sector.
In terms of market size, the domestic textiles and apparel market in FY19 is predicting to be worth US$ 100 billion. Around 4.5 crore people are employed in India’s textile sector, including 35.22 lakh handloom workers.
Support from the government for small and medium-sized businesses (SMBs):
India plans to build seven Mega-Integrated Textile Region and Apparel (MITRA) parks, according to the Union Budget 2021. This approach is expected to double the company’s size to $300 billion by attracting large investments and increasing employment. As a result, the textile sector in the nation will become an internationally competitive production and export center.
Aside from MITRA progress, additional benefits such as GST reduction would enable SME-MSMEs to free up funds to invest in important development drivers such as technical developments, modern marketing, modern infrastructure, and more.
The role of OfBusiness in this area is as follows:
The perfect moment for manufacturing companies to develop their operations and improve their production facilities is now since the market demand is expanding and the government is introducing new strategies to help the textile sector. The MSME, on the other hand, lacks working capital to expand its company and enhance output. This is where businesses like OfBusiness come into play.
OfBusiness assists these MSME by providing raw material finance and a suitable credit duration to enable the smooth operation of their enterprises.
OfBusiness plans to offer raw materials to a number of fabric manufacturers with the support of the company’s finance arm. The corporation makes an advance payment to the supplier’s account and expects extending credit to the customer on the agreed-upon conditions. Large volume consumption, advance payments, and new clients from PAN India. PAN India is among the perks for yarn manufacturers/suppliers in this arrangement.
To boost this sector’s growth, OfBusiness establishes itself as a dependable supplier partner to big material purchasers. Offering them high-quality material on favorable financing terms. To preserve faith in the functioning, the firm provides supply from suppliers who are aware of the buyer’s information. Customers/fabric producers gain from aggregate demand, competitive pricing, and high-quality material available on credit terms.
India’s Textile Industry Has a Long Road Ahead:
The Indian textile sector appears to have a bright future, buoyed by strong local and foreign demand. With the rise of commercialization and disposable money, the retail sector has seen rapid growth in the last decade, with the entry of a few multinational firms like Marks & Spencer, Guess, and Next are among the brands that have entered the Indian market.
Higher buying power has resulted from increased financial development. As a result, product demand has increased, resulting in a large domestic market.