Banks should play a major role in attaining USD 350 billion target for textile sector, says Ms Roop Rashi
“Banks should play an important role in meeting the credit needs of textile sector, which supports 5.4 crore jobs and whose market size is targeted to grow from USD 172 billion now to USD 350 billion by 2030. I am confident we can reach this target before 2030; But the sector needs bank funding for product standardisation, capacity building, international branding and exports. Textile value chain from spinning to weaving is a capital intensive sector, which needs bank funding. While banks give priority to big ticket loans and project finance, I hope they will also give equal importance to funding needs of textile units. This will truly promote financial inclusion as 70% of handloom units are operated by women. Out of 100 handmade textiles in the world, 95 comes from India,” said Ms Roop Rashi, (IA&AS), Textile Commissioner at the keynote address during Export Conclave organised by All India Association of Industries (AIAI), WTC Mumbai and YES Bank.
Ms. Roop Rashi mentioned that India, with a 16% share in world population, should take lead in adopting sustainable and circular economy principles. Indian banks should provide funding to textile units for technology adoption, R&D initiatives, product differentiation, branding and labelling initiatives.
Ms. Roop Rashi highlighted various initiatives taken by the government to promote sustainable textile clusters. Government has supported more than 47 patents across textile value chain, which needs to be commercialised.
Ms. Roop Rashi suggested textile units to explore potential export opportunities in South East Asia, Japan and South Korea. She specifically informed that Japan has showed renewed interest in Indian textile products in recent years.
During the event, Ms. Priya Pansare, Director, Trade & Investment Promotion, WTC Mumbai moderated a panel session with senior officials of DGFT, ECGC and also with the Textile Commissioner.
Mr. Praveen Kumar, Joint DGFT, Directorate General of Foreign Trade, Mumbai suggested MSMEs to benefit from the digitisation initiatives such as online self-generation of E-BRC, digital applications for certificate of origin, Advance Authorisation, EPCG and export licenses for restricted items.
Mr. Kumar suggested exporters to make use of the DGFT’s weekly video conferencing sessions to communicate any grievances related to exports, including non tariff barriers faced in foreign countries for timely resolution.
Ms. Arpita Sen, General Manager, ECGC suggested exporters to protect their profits by covering export related risks through insurance and also advised exporters to be aware of the import regulations in foreign countries before shipping goods so that their goods are not detained in customs.
Indian exporters have untapped business potential in Latin America and other emerging markets, she informed.
Ms. Sen suggested banks and exporters to avail of ECGC services, which insures exports to 239 countries with 100% cover subject to terms and conditions.
Exporters should cover payment risks arising out of default by the LC opening bank, insolvency of the importer, non-acceptance of goods by the importer and political crisis.
A key highlight of the event was the signing of MoU between WTC Mumbai and Yes Bank to support each other’s MSME clients/members with access to credit and trade facilitation services.
In his remarks, Dr. Vijay Kalantri, President, All India Association of Industries (AIAI) and Chairman, WTC Mumbai emphasised that India’s annual goods exports is USD 440 billion and in order to attain USD 1 trillion exports, we need to address key challenges of MSME exporters.
He pointed out, “Lack of access to collateral free credit is a major challenge faced by MSMEs and I hope with our collaboration with YES Bank, All India Association of Industries (AIAI) and WTC Mumbai facilitate easy access to capital for our MSME members. I am happy to learn that YES Bank offers 25% of its credit to MSMEs. Many private banks offer higher share of their credit to MSME sector. I hope public sector banks will also increase share of MSME lending, which is very low in their portfolio currently.”
Dr. Kalantri highlighted the role of AIAI and WTC Mumbai in empowering MSMEs. He said, we organises more than 60 trade events annually, which includes interactive meetings with foreign business delegations. I invite all MSMEs to participate in these events and grow their business in foreign markets.
Dr. Kalantri complimented Textile Commissioner for taking various measures to support the sector and suggested the department to organise regular meetings with Customs, DGFT, bankers, RBI and other agencies to resolve issues of trade and industry.
Dr. Kalantri suggested MSMEs to submit their issues and grievances to AIAI and WTC Mumbai so that it can bring them to the attention of government and regulatory agencies for timely resolution.
Speaking on this occasion, Ms Rupa Naik, Executive Director, WTC Mumbai explained how WTC Mumbai assists MSME exports by leveraging 320 WTCs across 90 countries. Ms Naik invited the delegates for the meetings with high level business delegations from Congo, Turkey and Russia in the coming week at WTC Mumbai.
Ms. Naik also clarified all the queries raised by the audience during the event.
In her remarks, Ms. Aakruti Bagwe, Director – Operations, WTC Mumbai emphasised that WTC Mumbai is not just a popular venue for trade shows, as commonly known, but it is a stepping stone for MSMEs and exporters to grow their business globally. Ms. Bagwe explained how WTC Mumbai empowers MSMEs through trade research, trade information and Impactful education programs, besides imparting vocational skills for women entrepreneurs and youth.
The event was also addressed by Mr. Percy Adajania, Head, Product and Program Management, SME Banking, YES Bank, Mr. Dhavan Shah, Country Head, SME Banking, YES Bank, Mr. Indranil PAN, Chief Economist, YES Bank and Mr. Nirav Dalal, Country Head, Financial Markets, YES Bank.
Mr. Indranil PAN pointed out that India’s exports to GDP ratio has been falling in recent years and it is down from 13.4% in FY23 to 11.4% FY25 (expected).
Mr. PAN explained various scenarios under which US government’s tariff policy may affect Indian exports and manufacturing.
In conclusion, he said he expects RBI to cut repo rate by 25 basis points in April and another 25 basis points in June assuming 4.3% CPI inflation for FY26 and a normal monsoon forecast.
In his address, Mr. Nirav Dalal suggested exporters to hedge their currency risks by entering into option contracts as they are always better that forward contracts.
Dr. Vijay Kalantri, President, All India Association of Industries (AIAI) and Chairman of MVIRDC WTC Mumbai (3rd from right) exchanging MoU with Mr. Dhavan Shah, Country Head, SME Banking, YES Bank (2nd from right) at the Export Conclave. Also seen in the photograph are (from left to right): Mr. Percy Adajania, Head, Product and Program Management, SME Banking, YES Bank, Ms. Aloka Rajan, SME Program Lead & Association Business Leader – MMR & ROMG Yes Bank, Ms Aakruti Bagwe, Director, Operations, WTC Mumbai, Ms. Rupa Naik, Executive Director, WTC Mumbai, Ms. Priya Pansare, Director, Trade & Investment Promotion, WTC Mumbai