As India's finance minister Nirmala Sitharaman prepares to present the Union Budget on February 1, 2024, for fiscal year 2024-25 (FY25), all eyes are on the fashion industry. Despite this being an interim budget, there's a palpable sense of optimism among industry leaders who eagerly await significant policy initiatives from the government. These initiatives are anticipated to catalyze the industry's expansion and reinforce its position on the global fashion stage.

Shivendra Nigam, Chief Financial Officer of Cantabil Retail India, expressed confidence in India's retail industry as he says, “As India's retail industry gears up to reach a remarkable $4.5 trillion by the decade's end, Cantabil stands as a testament to the unwavering government support, emerging as champions of self-reliance and fervent supporters of the 'Make in India' brand.  Achieving new heights alongside renowned international brands is a milestone that reflects our commitment to excellence. However, amidst our remarkable success, there is a recognition of the need for further improvement, particularly in attaining parity for lifestyle products. Whether it's footwear or apparel, the importance of a uniform GST rate cannot be overstated for ensuring fairness. Our appeal for a standardized GST rate transcends a mere plea for equality; it signifies a crucial step towards fostering a level playing field for all industry participants. As we eagerly anticipate the Union Budget, we look forward to measures that will further support and promote fairness within the dynamic landscape of the retail sector."

Meanwhile, Deepak Aggarwal, Founder & CEO of KAZO, highlighted the industry's resilience amid challenges as he quotes, “We’ve successfully navigated significant challenges in the past year, adeptly adapting to supply chain disruptions, fluctuating raw material prices, and evolving consumer behaviours. Despite these hurdles, our steadfast focus on innovation and customer-centric strategies has upheld our resilience. In these economic conditions, we hold an optimistic outlook regarding potential government support. Stimulus packages aimed at supply chain optimization, R&D, and sustainability would be highly advantageous to our industry. To fortify resilience, we advocate for policies that foster regional production, diverse sourcing, and the integration of logistics technologies to avert future disruptions. Encouraging consumer spending in the fashion sector could benefit from fiscal policies that promote disposable income, such as tax breaks for fashion retail purchases. E-commerce's post-pandemic role remains significant. With this, we recommend implementing policies like tax incentives and bolstering digital infrastructure to augment both online and offline channels."

Prince Shah, Founder of BOMAACHI, anticipated proactive measures to foster a conducive environment for local manufacturers as he expresses, “We anticipate proactive measures from the government aimed at fostering a more productive environment for local manufacturers, ensuring stability and sustainability in the production ecosystem. The increased popularity of streetwear is making a significant impact on the economy in India. In anticipation of the upcoming fiscal year's budget, we hope for initiatives that recognize the crucial role of startups led by young individuals in reshaping our economy, catalysing growth, and innovation. At BOMAACHI, our optimism extends to policies that empower local manufacturers, embrace the spirit of entrepreneurship, and set the stage for sustainable growth in the streetwear sector and beyond.”

As anticipation mounts, stakeholders in the fashion industry await the Union Budget's announcements, hoping for policies that will drive growth, innovation, and sustainability across the sector.