The effect of Piyush Goyal on the textile sector is already here as textile stocks soar, some hit 52 week high

One of the biggest gainers in the first major cabinet reshuffle undertaken by Prime Minister Narendra Modi since 2019 was Union Minister Piyush Goyal who was given the charge of Textile Ministry, along with the Ministry of Consumer Affairs, Food, and Public Distribution. Having already proven his mettle as the Rail Minister, the textile industry responded with positive sentiment to Goyal’s appointment.

According to a Business Standard report, the shares of textiles companies were in demand as Vardhman Textiles, Siyaram Silk Mills, RSWM, and Dollar Industries hit their respective 52-week highs on the BSE in intra-day trade on Friday. Trade analysts have attributed the spurt in the textiles shares as a direct impact of Goyal’s promotion.

And like I told you yesterday, it’s not a demotion, it’s PM Modi turning to his best minister to turn an industry around. The stock market agrees with Goyal’s talent, PM Modi’s trust and my analysis 😇 pic.twitter.com/Fa7x2q8UMo

— Atul Kumar Mishra (@TheAtulMishra) July 9, 2021

Siyaram Silk Mills rose 6 per cent to hit a fresh 52-week high of Rs 344, up 11 per cent in the past two trading days. Vardhman Textiles (VTL) too hit a fresh 52-week high of Rs 1,495.65, up 4.4 per cent.

Earlier this year, Piyush Goyal’s colleague in the NDA government and Finance Minister Nirmala Sitharaman had granted a comprehensive piece of pie to the textile industry which was well received by the stakeholders.

In the Union Budget 2021-22, Sitharaman granted Rs 3,614.64 crore, about 10 per cent higher than the revised Budget amount of Rs 3,300 crore in 2020-21 to the sector. The Budget also emphasized infrastructure development and research and capacity building as the grant for these sectors had been increased by about 43.7 per cent and 77.5 per cent, respectively, compared to last year.

Piyush Goyal – the miracle worker

Reported by TFI previously, after PM Modi turned to Piyush Goyal for the Railways Ministry, the minister was able to bring an innovative work culture, hitherto unseen in the sector, which had witnessed lackadaisical leaders like Lalu Prasad Yadav and Mamata Banerjee in the past.

As a result, the Indian Railways and its trains now are more punctual than ever. Unmanned crossings are history. From accidents amounting to as high as 1130 in 1980-81, the number of train accidents fell to 59 in 2018-19, a reduction of more than 94.8 per cent. Cleanliness in trains is now a stuff of legends. Train toilets that remained nothing more than a hole in the floor for 67 years transformed into well-equipped lavatories under Goyal’s leadership.

Similarly, when Goyal took charge of coal, power, and renewable energy in Modi Cabinet 1.0, the new minister of state knew what he was signing up for. However, by the time Goyal handed over the keys of the ministry to his successor RK Singh, the process of electrifying every village had been completed. Under his leadership, coal allocation through the e-auction method was working seamlessly and power generation had grown to record highs.

Read More: Piyush Goyal is PM Modi’s very own ‘rainmaker’ – Textile Ministry for him is not a demotion

With the introduction of Goyal in the Textile Ministry, one can be assured that the industry will only touch new heights. The minister surely has a knack for taking difficult challenges and overcoming them.