The city’s garment exporters and manufacturers recently praised the Haryana cabinet’s recent approval of a new textile strategy, saying the industry will benefit from increased government support in the form of simple financing, R&D funding, and access to new technology. They claimed that in order to support garment makers, the policy also needs to have a distinct export-oriented element.
According to industry observers, Gurugram has more than 1,500 small and large enterprises producing and exporting clothing, with a turnover of more than Rs. 20,000 cr. In addition, it generates more than 200,000 jobs for the city’s workforce.
The State Government of Haryana recently launched the Haryana Aatma Nirbhar Textile Policy 2022–25, which aims to emphasise man-made fibres and secure increased investments in weaving and knitting. The policy’s anticipated budget is Rs. 1,500 crores, with a cap for capital incentive situations. The policy, according to a government official, intends to bring in investments worth Rs. 4,000 crore and create 200,000 jobs in the state.
The initiative aims to stimulate the expansion of Haryana’s textile sector into the economically underdeveloped B, C, and D category blocks. According to the administration, it would also emphasise the promotion of technical textiles and provide assistance for the establishment of textile parks in the state.
While increased investment and research are to be welcomed, more actions are required to provide financial incentives and subsidies to the manufacturers in the short and long terms, according to HKL Maggu, Managing Director, Jyoti Apparels, who has extensive experience working with industry bodies in the textile industry.
“The government must focus on financial incentives such as increasing duty drawback, increasing interest subvention. There should be more focus on natural fibres as the garment industry in north India is more cotton centric,” he said.
The textile policy should emphasise local worker training, skill development, and providing workers with affordable accommodation in industrial regions like Manesar and throughout the state, according to the garment exporters. They added that as Haryana is one of the top cotton-producing states in the nation, the textile strategy should place an equal emphasis on utilising this raw material.
A new textile policy, according to Manmohan Gaind, vice president of Manesar Industries Welfare Association and a garment exporter, should also concentrate on luring labour and offering them reasonably priced housing to encourage them to come and work in the state. “Skill centres must be opened to teach stitching and related trades to local people,” he said.
Industry participants also claimed that tax breaks on samples manufactured by them and subsidies for yarn will benefit garment exporters.
The vice president of the apparel export promotion council and a garment exporter, Sudhir Sikri, added that policies must alter the way the local population thinks and give them the necessary education and training. “Most of the state’s personnel are from outside the country. In addition to giving the industry various advantages, there is a need to concentrate on growing the local labour force,” he stated.