It made me happy that our Finance Minister Nirmala Sitharaman announced in the budget that local sourcing norms will be eased for FDI in single brand retail sector. This statement brings in some sigh of relief to an otherwise struggling industry.
As of now, 30 per cent local sourcing is mandatory for single brands, when the FDI exceeds 51 per cent. Though so far it is not clear as to how much relaxation will be there and when, it will be notified soon. Our industry has raised concern that this ease will hamper the Indian apparel manufacturers who are supplying garments to such brands, but I must say that overall industry will be accommodated by the entry of more international brands in India.
This should also motivate Indian apparel manufacturers to provide the desired products in that price bracket and quality to the international brands, which these brands are using to get products imported from Bangladesh or Vietnam and selling in India. It is to be noted here that India is lucky to have fabric
support within the country unlike other global manufacturing countries like Bangladesh and Vietnam, but it is not able to uplift itself because of lack of quality, efficiency and timely delivery.
Time and again, I have reiterated that we have to stop looking towards Government and improve ourselves on all the levels that are very much within our capacity. And not to forget that Government is supporting too. The present budget is a testimony to this fact wherein the Government is proposing to streamline multiple labour laws into a set of four labour codes. This will ensure that the process of registration and filing of returns gets more systematic and streamlined. With various labour-related definitions becoming standardised, it is expected that there shall be less disputes.
All-round thrust on start-ups is again in focus… this truly needs appreciation in view of long-term goals of the country. Needless to mention here that achievement of start-ups across the industries and especially in e-commerce and technology has been remarkable till date. There is huge scope for start-ups even in fashion and the entire textile industry. Many unexplored areas can be converted to definite, productive business with the help and vision of these start-ups which can foretell big changes for future India.
The aforementioned factors are but just a few small efforts and initiatives which can bring in holistic growth not only for the industry but also for the country’s economy. The alarm bells are ringing loud and clear for the industry to wake up and fasten its endeavours to explore the plethora of opportunities never used before to bring in radical transformation in its mundane approach and system of doing business.