The allocated funds will be directed towards the company’s textiles, engineering, and real estate divisions in Ahmedabad.
Arvind, a textile conglomerate, has entered into a memorandum of understanding (MoU) valued at Rs 3,000 crore with the Gujarat Government, spanning across the conglomerate’s various business verticals. The allocated funds will be directed towards the company’s textiles, engineering, and real estate divisions in Ahmedabad.
Kulin Lalbhai, the Executive Director at Arvind, revealed, “These investments will be implemented over the next four years while maintaining our manufacturing operations in Ahmedabad. We aim to expand our technical textiles segment within Arvind and concentrate on real estate development in Ahmedabad.”
Despite calls from economists and experts urging India to shift focus towards research and development (R&D), engineering, and design, Kulin concurs, albeit with a caveat. “India should emphasise more on tech and R&D-driven manufacturing,” he remarked. “The primary challenge, however, lies in transitioning people from agriculture to manufacturing. Nevertheless, we must step up as the world distances itself from China.”
One approach suggested by Kulin is leveraging textile exports. “We already command 5 per of the world’s textile and apparel trade,” he stated. “If we double this, it would translate to $ 5 billion in exports.” However, the Arvind director believes that competing with China might hinge more on scale than expertise. “India needs to expand its garmenting sector, and Free Trade Agreements (FTAs) will play a pivotal role in achieving this,” he emphasised.
Commending Gujarat’s industrial policy, Kulin asserted that it serves as a benchmark for other states to potentially emulate, particularly in terms of policy consistency. “MOUs in renewables or conventional manufacturing are a testament to the state’s policy stability,” he added.
Indicating that private capital expenditure could be an imminent opportunity, Kulin expressed unwavering confidence in growth prospects surpassing 7 per cent. “The time is ripe for various elements to align and attract investments,” he asserted. “There’s no reason why India cannot achieve growth rates greater than 7 per cent.”
News source: Business Standard