New Delhi, Feb 29 (KNN) The Clothing Manufacturers of India (CMAI) has called upon the Indian government to grant industry status to the retail sector and streamline the single brand Foreign Direct Investment (FDI) policy.

These recommendations were highlighted during a recent CEO roundtable discussion held at the Bharat Tex 2024 conference and exhibition, attended by key industry players and government officials.

CMAI emphasises the necessity of granting industry status to the retail sector to facilitate better access to organised financing and simplify regulatory compliance.

Currently, retail operations are subject to varying state regulations, creating a cumbersome environment for businesses.

Rahul Mehta, Chief Mentor of CMAI, stresses the need for unified regulations formulated by the Centre to alleviate this issue.

International brands operating in India advocate for a simplified single brand FDI policy.

Many such retailers, managing multiple brands, find the existing regulations complex.

They urge for regulatory adjustments to enable the launch of multiple brands within the country.

Against the backdrop of a projected USD 350 billion apparel and textile industry by 2030, the government underscores its commitment to fostering the sector's development and boosting exports.

However, the industry has experienced subdued growth following a surge in demand post-Covid, necessitating strategic interventions.

In addition to regulatory reforms, the apparel industry seeks the establishment of a retail expansion fund akin to the government's technology upgradation fund scheme.

This fund aims to facilitate expansion efforts in smaller towns and rural markets, requiring substantial capital investments.

The collaborative efforts between industry stakeholders and government bodies are crucial for unleashing the full potential of India's apparel retail sector.

By addressing regulatory complexities and providing financial support for expansion initiatives, the industry can navigate challenges and capitalise on emerging opportunities, contributing significantly to the nation's economic growth.

(KNN Bureau)