Ludhiana's textile industry wants govt to stitch up FTAs

Ludhiana's textile industry is navigating through a sea of challenges, adapting to a new normal of subdued demand, while pinning its hopes on governmental support for the establishment of a mega textile park and the signing of free trade agreements (FTAs) with developed economies.

-  SHREYA NANDI Ludhiana

The past eight years have been a rollercoaster ride for this labour-intensive industry. All this began with demonetisation in 2016, followed by the introduction of a revamped indirect tax regime goods and services tax - in 2017. The Covid-19 pandemic in 2020 added to the woes, and the geopolitical tensions since 2022 have led to high inflation and recessionary trends in the West, impacting demand.

Vinod Thapar, president of Knitwear Club, an apparel industry association, stresses the urgent need for a mega textile park in Ludhiana. He believes that such a park, akin to those in China, could be a game-changer, creating thousands of jobs and reviving the industry. "We need the government's intervention on this at the earliest. Discussions on setting up a textile park have been going for the past two-three years and there has been delay due to unavailability of adequate land," Thapar says.

However, the road to recovery won't be without obstacles. The Indian textile industry faces stiff competition from several countries in the region, such as China, Bangladesh, Sri Lanka, Vietnam, and even Pakistan.

The industry is eagerly awaiting the signing of FTAs with the United Kingdom and the European Union. India has been losing ground to competitors like Bangladesh and Vietnam, which enjoy lower duty benefits.