Need to address structural issues and enhance global competitiveness - SIMAThe Indian textiles and clothing industry, the second largest employment provider next only to agriculture by providing jobs to over 110 million people, fetching over Rs.30,000 cr GST revenue and 44 billion USD forex earnings, has been facing challenges in the recent past mainly due to the structural issues on raw material front, tariff & non-tariff barriers, high cost of production, scale of operation, high transport and capital cost apart from the external factors. The NDA Government led by the Hon’ble Prime Minister, Narendra Modi has been giving major thrust for enhancing the global competitiveness of the Indian textiles and clothing industry and addressed several issues. However, the policy pitfalls in certain areas and delay in strengthening the raw material base, refunding government dues have been affecting the industry to achieve a sustain growth rate. The industry also has been adding capacity without looking at the long term needs and prospects of the industry due to attractive incentives given by various State Governments. Though several States provide attractive incentives, there is an undue delay in disbursing the committed benefits on time resulting in several financial stress for the new investments made under such policies. Under this scenario, it has become essential to have a holistic approach with long term vision not only to grab the space vacated by China in the textile trade, but also to achieve a sustained growth rate.