You must be aware that India is the having experience in garment business from ancient days. It is a fact that Indian garment sector has fascinated Western and Middle-Eastern societies throughout the history of the world. Today, textile exports account for nearly 11% of the country’s total exports, and the textile industry provides jobs for millions of people. About forty million people are directly involved in the industry but there are sixty million more who are indirectly involved.
This business comes under different segments including the manual looms, sericulture, and crafts. These work in small quantities and are often made using conventional methods. Then comes the segment that is largely structured and they include the production of yarn, spinning, and clothing for both foreign and local markets. The production of this sector is primarily dependent on the utilization of modern machines and techniques.
As far as the market size is concerned, the garment industry in India has a value of $ 108 billion, and this is forecasted to reach $ 223 billion before 2021. In addition to job creation for around a hundred million people, this sector accounts for nearly 5% of GDP and 14% of the index of industrial production. This industry is currently experiencing growth in venture activity. Also, this industry has attracted $ 1.85 billion in foreign direct investment in 6 financial years from 2000 to 2016. The Indian government has also implemented several measures to boost exports to the sector, allowing cent percent direct investment from foreigners in this sector using the automatic method. In addition, the creation of the first integrated textile city of India is planned to be set up in Andhra Pradesh.
The way of the future for Indian companies in the clothing sector.
The future looks very clear for the Indian textile business, for both large and medium-sized companies. Domestic consumption is rising sharply and demand in export is also steeply increasing and seems strong. As the consumption from the middle and lower class is increasing, several foreign players are eyeing in expanding their business in India. To name a few, example, Marks & Spencer, Next, and Guess have arrived in India 10 years before. It is expected that the organized garment sector in India will grow for 10 years, with an average yearly growth rate of more than 13%. The small and medium enterprises segment, which focuses on looms, crafts, and sericulture, also benefits from e-commerce. In recent years, the arrival of online business is emerging rapidly that promote domestic textiles. Also, it helps the expansion of their customers both locally and internationally.
Obtain a business loan for the textile sector
If you own small clothing business, you are at the advantageous edge of several government initiatives, including:
- The link between manual and textile weaving is made up of 9 players as well as 70 retailers to increase the coverage of hand-held textile products. This will create competitive price and offer a continued activity for small and medium business owners in the garment industry. Also, this will facilitate the direct access of small weavers to the consumers and the larger markets.
- Apart from the 5% interest discount for certain technical textile machines, the Revised Restructured Tech Upgradation Fund Scheme (RRTUFS) covers the production of large machinery as well recently at a 5% interest discount and a 10% capital grant.
- The Scheme for Integrated Textile Parks (SITP) offers 40% (with 40 crores as upper limit) of infrastructure support for parks.
- The most important technical equipment for textile production is subject to a preferential tariff of 5%.
- The specified technical textiles are included in the focused product range. Exporting of such products entitles a customs declaration equal to 2% of the value of the cargo on board.
- In addition to all these advantages, you can still avail a loan for small business if you require support financially. These days there are financial institutions apart from the banks like FlexiLoans to offer loan with the best interest rates. Finance offers promising loans to small and medium enterprises with instant loans of up to 10 million. Unlike loans offered by banks, these small loans do not require sanction by RBI and hence follow less process incorporating speedy approval. This is the main characteristic of these business loans for garment business.
How to establish the clothing business in India
Setting up and expanding garment business is easy if you follow these simple steps
- Social networks: With the growing presence of customers in various social network channels, you can stay connected with them online.
- Marketing operation: Planning a promotional drive will help reach more customers. You can borrow a loan for your textile industry and invest in such activities.
- Develop an e-commerce website: you can sell your clothes online or at Amazon. Online sales increase their reach leaving the limits of demography.
Business credit records requirement
- Bank account statement for the last 12 months.
- ITR filed copy for at least 2-3 years in the recent past
- PAN card
- Proof of business address
- Proof of residence
Our criteria for granting loans for the business include:
- Minimum 2 years you should have been in operations
- Minimum sales of 2 lakhs INR rupees in the last 12 months.
- The home or business premises must be available to set up a store. However, for an online business, this is not mandatory
- The workplace and place of residence should be two different address.
FlexiLoans special characteristics for a business loan for garment business
- Amortization period from one month to 2years.
- Extend the loan upon making full payment at an earlier date
- Fast processing time with a maximum of 2 days.
- Flexible reimbursements in monthly or biweekly installments.
- Know the monthly payment rates using our EMI calculator and that will make you stress-free as you can have clarity about the amount in advance.
- Personalized interest rates are offered to match your loan application based on the details provided.
- Prepaid zero rates.
- Processing fee from 1 to 2% without any other fee.
- The online process that includes filling the application, submitting documents and getting approval, as well as follow-up. All process online and no physical meeting required.
- The ticket size is up to one crore.
- You can apply for a loan in 100 cities in India to start a business that includes equipment purchases, inventory replenishment, managing working capital, and inventory expansion.
You can use a loan from us to perform some or all of the important business tasks that require instantaneous monetary consideration. The business loan application process is very simple and only takes 15 minutes.