Textile Industry in India and growth of MSME

The Indian Textile Industry is perhaps the most established in the Indian economy, tracing back to a few centuries. With hand-spun and hand-woven textiles toward one side of the range and the capital-intensive spinning mills on the opposite end, the business is prevalent. The decentralized power looms/hosiery, and the knitting sector shape the most significant segment of the textile industry.

In terms of market size, the domestic textiles and apparel market stood at an estimated US$ 100 billion in FY19. The Indian Textile Industry is a massive source of employment – there are around 4.5 crore employed workers, including 35.22 lakh handloom workers across the country.

Government support for MSME:

The Union Budget 2021 reported India would set up seven Mega-Integrated Textile Region and Apparel (MITRA) parks. This move is relied upon to twofold the business size to US$ 300 billion by attracting significant investments and boosting employment. Thereby, make the country’s textile sector a globally competitive manufacturing and export hub. 

Other than MITRA advancement, extra advantages like GST reduction will help the SME-MSMEs let loose money to put resources into key development drivers like technological advancements, modern marketing, latest infrastructure facilities, and more.

Role of OfBusiness in this sector:

Since the market demand is increasing with the government bringing in new schemes to promote the textile industry, it is the right time for the manufacturing units to expand their businesses and enhance their production facilities. However, to grow a business and increase production, the MSME lacks working capital. This is where companies like OfBusiness come into the picture.

OfBusiness helps these MSME by financing them with raw materials and providing the companies with sufficient credit period to ensure the smooth running of their businesses. 

With the help of the company’s financing arm, OfBusiness intends to supply raw materials to many fabric manufacturers. The company makes an advance payment to the supplier’s account and looks forward to providing credit to the buyer with desired credit terms. In this deal, the benefits for yarn manufacturers/suppliers include large volume consumption, advance payments, and getting new customers from PAN India.

To enhance growth in this sector, OfBusiness becomes a reliable supplier partner to major material buyers supplying them with intended high-quality material at suitable credit terms. The company ensures supply from the suppliers of the buyer’s knowledge to maintain confidence in the working. The benefits for the customers/fabric manufacturers include aggregate demand, competitive rates, and high-quality material on credit terms.

The Road Ahead for Textile Industry in India:

The future for the Indian textile industry looks encouraging, floated by strong domestic and international consumption. With commercialization and disposable income on the ascent, the retail area has encountered a fast development in the previous decade with the passage of a few global players like Marks and Spencer, Guess and Next into the Indian market. 

High financial development has brought about higher disposable income. This has led to a rise in demand for products creating a vast domestic market.

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