National Schemes
- Nidhi Shegokar
- Aug 31, 2023
- 3 min read
The Indian Government has introduced a series of initiatives and programs aimed at bolstering the textile and apparel industry:
1. Enhancing Foreign Direct Investment:
Implementation of a special scheme with the objective of boosting exports by $31 billion, generating 10 million job opportunities, and attracting approximately $12 billion in foreign investment.
2. Upgrading Manufacturing Technology:
Revised Technology Upgradation Fund Scheme with a budget of $109 million.
3. Facilitating Training and Skill Development:
Introduction of the Scheme for Capacity Building in the Textile Sector.
4. Establishing Integrated Textile Parks:
Allocation of $106.6 million for the development and modernization of 21 readymade garment manufacturing units across seven states, aimed at enhancing the Indian textile sector.
5. Incentivizing Manufacturing Production:
Provision of $1.4 billion to incentivize the production of man-made fibres and technical textiles.
6. Advancing Technical Textiles:
Launch of the National Technical Textiles Mission with a budget of $211.8 million. This four-year initiative entails research, development, and innovation in fibres and applications, including biodegradable technical textiles. The mission also aims to promote and expand the market to a valuation of $50 billion by 2024, foster export growth at a 10% year-on-year rate, and provide support for education, training, and skills development.
7. Supporting Handloom Weaving:
Allocation of funds for the National Handloom Development Programme ($55.6 million) and the Integrated Processing Development Scheme ($7.2 million). Additionally, the Weaver MUDRA Scheme will provide loans to handloom weavers and entrepreneurs in the sector.
8. Improving Fibre Production:
Implementation of various schemes and incentives to support farmers engaged in the production of natural fibres such as cotton, wool, and silk.
9. Seven PM MITRA Parks: The Indian government has introduced various measures to stimulate the growth of the textile and apparel industry and boost exports. Notable initiatives include the creation of Mega Integrated Textile Region and Apparel (PM MITRA) Parks, aiming to establish textile ecosystems with core and support infrastructure. These parks align with the Prime Minister's vision for the industry, encompassing the entire value chain from farm to foreign markets.
10. Production-Linked Incentive (PLI) Scheme: Additionally, the Production-Linked Incentive (PLI) Scheme has been launched to revitalise the textile sector, projected to generate over 7.5 lakh jobs and elevate companies to global prominence. The scheme plans to offer incentives totaling Rs. 10,683 crore over five years, fostering substantial investments and increasing production turnover by more than Rs. 3 lakh crore in the same period.
Apart from these initiatives, the government has implemented financial incentives, subsidies, and tax reductions. Notably, anti-dumping duties on crucial raw materials like PTA and acrylic fibre were removed, bolstering the industry's competitiveness. Support is also extended through the Market Access Initiative Scheme to aid textile and apparel exporters.
The Indian textile and apparel industry holds a significant global position due to abundant raw materials, extensive manufacturing capabilities, diverse products, and rising demand. India is a leader in segments like silk, cotton, and jute production. The sector achieved record textile exports of US$ 44.4 billion in FY22, with readymade garments and cotton textiles driving the majority of exports. The government's ambitious target is to reach US$ 100 billion in textile exports by FY30. Initiatives such as PM MITRA Parks and the PLI scheme are poised to attract investments, fostering substantial growth in production, employment, and exports. These endeavours position India to become a prominent global leader in the textile and apparel market.
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