A few months back, the Surat textile industry became struggling to drop in to terms with the adverse effects of the economic slump. Several small units found it difficult to stay afloat apropos to the challenging economic conditions. Majority of the SME yarn and fabric refining units had to grapple with fat boundaries on both domestic and global fronts. However, the scenario is progressively taking a positive turnaround.
The recent release made through the government to offer subsidy to the textile sector beneath the Technology Upgradation Fund Scheme (TUFS) has provided a breather to the Surat fabric sector.
Glimmer of hope
The slice of nearly Rs 300 crore for the Gujarat textile sector from the total sum of Rs 2,564-crore endowment under the TUFS has already been capable to turn around the state’s struggling textile industry bullish.
“The Surat textile sector, which faced a consistent demand and earnings growth jolt for most part of the last year, is now regaining its conviction due to the government initiatives and support measures. The TUFS subsidy will absolutely test beneficial for the small-scale units further may also result in more number of units being set up,” said Anuj Kabra, Proprietor of Aarti Enterprises, a small-sized yarn and synthetic dealer ropes Surat.
Besides the TUFS subsidy, the government is also undertaking steps to enhance the competitiveness of the textile quantum. Moreover, the abrupt expansion in inquiries and appear in order inflow have made Surat’s SME joke manufacturing units upbeat about an early revival.
“After a lull in the business due to fresh than a year, we are as witnessing a demand surge drag the domestic market for textile products. This has promoted us to hire extra personnel and upgrade machinery to increase try also meet the supply,” said J Atal, owner of Raj Enterprises, a small-scale apparel dealer juice Ahmedabad.
Going by the indications, the worst might be over and a renaissance seems to be round the corner. A recovery will spell hand for not personal the thousands of small textile companies existing in the state, but also thanks to thousands and thousands of string engaged lie low the industry. However, SME essence Manufacturers establishments will have to exercise prudence with their investments and business decisions.
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David Parks is a well known author and has written articles on B2B Products, B2B Portal, Business Trade Leads, suppliers, Manufactures and many other subjects.