The foreign direct investment (FDI) policy of the Indian government could lead to a boom in textile and apparel sector as several global players, including Walmart and Hennes & Mauritz (H&M), plan to enter the country through FDI route.
According to industry analysts and experts, the entry of foreign brands into the Indian textile and clothing market will boost the sector and increase employment opportunities in the country.
In a conversation with fibre2fashion, senior manager of International Corporate Affairs of Walmart, Ms. Megan Murphy said, “We remain excited about the opportunity to grow our business in one of the world’s most vibrant economies, expand opportunities for farmers and help lower the cost of living for families in India.”
“India is one of many interesting markets we are looking for expanding our business,” remarks the spokesperson of H&M.
Talking about the benefits of FDI in retail to the textile and apparel industry, economist of Confederation of Indian Textile Industry (CITI), Mr. Ajay Kumar says, “The entry of foreign brands into the Indian market will generate more employment opportunities in the textile and apparel sector.”
According to Mr. Khurshid Vakil, co-founder and executive director of Dubai-based Merina Home, Indian textile industry has grown by leaps and bounds in the last few years and has been exporting to most of the major markets around the world.
“Merina Home intends to partly design and manufacture its home décor offerings, including soft furnishings like curtains, rugs, etc, in India,” says Mr. Vakil.
Explaining the reason for his company’s decision to design, manufacture and expand in India, he says, “Textiles and home fabrics is a way of life in India and over the next five years we see an investment of over Rs. 3 billion.”
“The shifting of manufacturing base by several international textile and apparel brands to India will not only boost the country’s textile and garment sector, but would also greatly contribute to India’s economic development,” Mr. Varun Vaid of management consulting firm-Wazir Advisors sums up.
