In India, the MSME (micro, small and medium enterprises) sector is a major contributor to the socio-economic development of the nation. In the country, the sector has gained significant importance due to its increasing contribution to the growth of the Gross Domestic Product (GDP) and exports.
During the pandemic, the MSME industry has shown great resilience, helping the economy recover faster from the market downturn caused by the lockdown. In particular, the sector created job and employment opportunities in India, in cooperation with the textile Ministry.
Anurag Singh Khangarot, the co-founder of Aachho, one of the most important Indian e-commerce brands of clothing, explained: “Textile ministry, along with the finance minister, announced several schemes and programmes to support and strengthen the industry.”
He adds: “There have been multiple driving forces behind the monumental growth of the industry, and realising the full potential of each of these dynamics can help the MSMEs to unlock greater employment opportunities for the Indian workforce.”
In addition, increased exports not only create foreign exchange reserves, but also pave the way to greater employment opportunities in the country. For these reasons, the government has undertaken multiple reforms and plans to introduce labour-friendly schemes.
An industry open to circularity
The Centre for Responsible Business (CRB) is calling on the Indian government to help the country’s textile industry and make the transition to circularity.
In a report entitled “Circular Textile and Apparel in India: Policy Intervention Priorities and Ideas”, CRB highlights key aspects of a circular economy and how policy interventions could support them.
Globally, the fashion industry, especially with its focus on fast fashion, is under immense scrutiny due to its adverse environmental and ecological impacts, in terms of materials used, chemicals and energy consumption.
“Indian suppliers and manufacturers stand to make considerable gains if they proactively adopt good practices and innovate through circular business models and practices and get ready to be part of the transformation that is happening globally,” says the report.
Circular economy can be a gamechanger for Indian suppliers and manufacturers. The sector, in fact, is rapidly growing.