Advantage India
Robust
Demand
* Cotton production in India is projected to reach 7.2 million tonnes (~43 million bales of 170 kg each) by 2030, driven by increasing demand from consumers.
* India’s textile and apparel exports (including handicrafts) stood at US$ 44.4 billion in FY22, a 41% increase YoY. Exports of readymade garments including cotton accessories stood at US$ 6.19 billion in FY22.
Competitive
Advantage
* India enjoys a comparative advantage in terms of skilled manpower and in cost of production, relative to major textile producers.
* In March 2021, Minister of Textiles, Ms. Smriti Irani announced that India will be fully self-reliant in silk production in the next two years.
Policy
support
* 100% FDI (automatic route) is allowed in textiles.
* Production-linked Incentive (PLI) Scheme worth Rs. 10,683 crore (US$ 1.44 billion) for manmade fibre and technical textiles over a five-year period.
* The Indian government has notified uniform goods and services tax rate at 12% on man-made fabrics (MMF), MMF yarns and apparel, which came into effect from January 1, 2022.
Increasing
Investments
* Huge funds in schemes such as Integrated Textile Parks (SITP) (US$ 184.98 million) and Technology Upgradation Fund Scheme (US$ 961.11 million) released by the Government during 2015-16 to 2019-20 to encourage more private equity and provide employment.
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