As India’s finance minister Nirmala Sitharaman gears up to unveil the Union Budget on February 1, 2024, for fiscal 2024-25 (FY25), the spotlight turns to the fashion industry. Despite it being an interim budget, there is a palpable sense of optimism among industry leaders who are looking forward to significant policy initiatives from the government. These initiatives are expected to catalyse the industry’s expansion and solidify its presence on the global fashion stage.
Jasveen Kaur, senior director of merchandising for garment sourcing at New Times Group, expects the budget to contribute to advancing the growth momentum of Indian textile and apparel industry. Sharing her expectations from it, Kaur told Fibre2Fashion, “We have seen a drop in cotton yarn pricing lately, and I would urge to keep a cap on this and try to keep it stable. Cotton has a significant percentage of the total business we do and cannot afford to lose this business due to yarn cost fluctuation.”
To promote the textile sector and foster job creation, Kaur suggested considering the expansion of the coverage of the Production Linked Incentive (PLI) schemes. “The idea is to attract investments in the textile sector, cutting edge technology and promoting more man-made fibre (MMF) fabrics. we are still not able to compete with mills out of China, Taiwan and Korea both on pricing and quality.” She recommended considering a reduction in import duty on textile machinery, citing the need for significant technological upgrades.
Addressing the issue of traceability, Kaur questioned what measures are being taken to make Better Cotton traceable and whether the government is planning to use AI, technology, and robotics to enhance this critical segment to fulfil the needs of brands. She concluded by emphasising the importance of continuing the commitment towards sustainability and green growth in the industry.
Nishant Poddar, chief marketing officer of retail brand WROGN, expressed his anticipation for the upcoming interim budget on February 1. He highlighted the mood in the Indian fashion retail sector, saying, “As we eagerly await the budget, there’s a blend of hope and anticipation in the air, especially for us in the Indian fashion retail sector. It feels like standing at the threshold of what could be a new dawn.” Poddar also emphasised the importance of the ‘Made in India’ label, stating, “There’s a sense of pride in our craftsmanship and designs. We’re looking forward to any support that can amplify our ‘Made in India’ label, which is not just a tag but a testament to our rich heritage and skill.”
He further told Fibre2Fashion, “In our hearts, we know the future is sustainable fashion. Any encouragement from the budget in this realm would be like nurturing the seeds of a greener future.” Poddar also mentioned the growing role of digitisation in the fashion industry, noting, “The digital world is our new runway, and any move to strengthen this space would be like adding spotlights to the ramp. It’s essential for connecting with our customers, who are increasingly moving online.”
Regarding the ease of doing business, he likened improvements in this area to “clearing the clutter,” which would make room for creativity and efficiency. Poddar highlighted the importance of skill development, “Our sector is all about skills – from the weaver to the designer. Skill development initiatives are like nurturing the roots of this industry. More skilled hands mean more beautiful creations.” Lastly, he stressed the need for better retail infrastructure, particularly in smaller cities, likening it to “expanding our canvas” and reaching out to more people with their creations.
Ashish Gupta, head of legal and government relations at eBay, stated, “At eBay, we eagerly anticipate the Union Budget 2024–2025, foreseeing a transformative era for India’s e-commerce sector, particularly in enhancing e-commerce exports. We’re looking forward to a budget that streamlines business operations, promotes innovation in digital payments, and strengthens the logistics infrastructure, all while keeping a focus on supporting MSMEs through tax benefits and regulatory ease.”
Gupta further highlighted the importance of building on the previous year’s Foreign Trade Policy, saying, “Building on the success of the previous year’s impactful Foreign Trade Policy, we’re optimistic about a budget that will position India prominently in the global e-commerce exports arena. Envisioning the budget as a catalyst, we aim for export-oriented policies to propel India’s e-commerce onto the global stage, fostering sustainable growth and international competitiveness.”
Sharing his insights and expectations for the upcoming budget in relation to the fashion industry, Anand Aiyer, CEO of Arrow, told F2F: “At Arrow, envisioning a budget that encourages innovation and elevates the shopping experience is crucial. We anticipate the upcoming budget to resonate with evolving industry dynamics, ensuring resilience and meeting the refined preferences of the contemporary Arrow man.
“As the purchasing power of Indian consumers rises, there’s a strategic need for the budget to recognise and support this shift, particularly in the evolving role of branded goods in both professional and leisure lifestyles. Our vision is a budget that fosters the growth of premium menswear under the Arrow brand.”
The upcoming Indian Budget 2024-25 is generating optimism among the fashion industry leaders.
Expectations from the budget include stable raw material pricing, expanded incentive schemes, and support for domestic branding and sustainability.
There’s also a focus on boosting e-commerce exports, digital advancements, and nurturing skill development.
Fibre2Fashion News Desk (KUL)
