Home / Economy / India has managed inflation better than developed countries amid global headwinds: Goyal

TIRUPUR : India has managed to maintain its inflation at a reasonable level compared to developed countries at a time when global shortage of  certain commodities has push up the world inflation, said commerce and industry minister Piyush Goyal at an industry event in Tirupur in Tamil Nadu. 

He added that India's economy is growing at a healthy pace despite the ongoing geopolitical tension and Covid-19 pandemic. even in the current challenging times. 

"For most of the items, we have been able to maintain the prices much better even as compared to the developed world, " said Goyal during his interaction with textile exporters in Tirupur.  He added that the Indian economy is expected to touch $30 trillion in the coming 30 years. 

Goyal's remarks come at a time when the consumer price index based inflation is hovering at historical high levels at over 7%.

Talking about the textiles industry, he said the sector had the potential to double the production to 20 lakh crore in five years and triple exports to 10 lakh crore from 3.5 lakh crore now in the same period. 

Highlighting that  Tirupur has become a global apparel hub and is exporting goods worth over 30,000 crore from 15 crore, 37 years back, he said that there is a need to create 75 such textile cities in the country.

"Huge job and investment opportunities can be created in the textiles sector. There is immense potential in the sector," the minister said.

Tirupur is a major textile hub and is home to 10,000 garment manufacturing hub, employing over six lakh workers.

In 1985, Tirupur was exporting 15 crore worth of products. In the year ended March 2022, the estimated exports from here are 30,000 crore, that is two thousand times growth, Goyal highlighted.   He urged exporters to identify areas in local regions where entrepreneurs can go and set up textile units. “Can we identify 75 districts, and if possible backward districts, where out entrepreneurs can go and set up textile processing centre. Let us look for small clusters, where jobs can be provided in that area," he added.

A Sakthivel, president, Federation of Indian Export Organisations (FIEO) during his address urged the minister to link the export rebate schemes-RoSCTL and RoDTEP -with export realization for "better value " and expand the coverage of RoDTEP to left over sectors like pharma, iron and steel, chemicals, etc and to export oriented units (EoUs) and special economic zones (SEZs). He also pressed for a solution for exporters' payments stuck in Sri Lanka, and the implementation of rupee payment system for exports to Russia.

Dilasha Seth
" Dilasha Seth is a journalist reporting on macroeconomic policy for the last 11 years. She writes extensively on issues including international trade, macroeconomic data, fiscal policy, and taxation. At Mint, she reports on trade deals that India is signing besides key policy decisions of the Ministry of Finance. She closely tracked and covered the transition to the goods and services tax (GST) regime in 2017 and also writes on direct tax-related issues. In the past, she has worked with Business Standard and The Economic Times. She is based in Bangalore."
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