Indian Economy News

Government approved Setting up of 7 Pradhan Mantri Mega Integrated Textile Region and Apparel (MITRA) Parks with a total outlay of Rs. 4445 Crores

In comparison to rival nations that must import fibre, yarn, and fabric to meet their garment production requirements, India has the unique benefit of having the whole value chain for textile production existing within the country. India also has a big domestic market that is rapidly expanding due to the availability of low-cost labour. The domestic textile and garment production market is estimated to be worth US$ 140 billion, with textile and apparel exports expected to be at US$ 40 billion. In 2019, the textile and apparel industry contributed 2% to India's overall GDP and 11% to total manufacturing in GVA.

The availability of nearly all types of raw materials, the existence of a total value chain, India's young demography, the entrepreneurial mindset of industry leaders, the government's ongoing support, technology advancements, a strong focus on innovation, and the strong presence of support industries will all help this sector grow at a healthy rate in the coming decade. This industry alone has the capacity to generate roughly 70 jobs in garmenting and an average of 30 jobs overall for every Rs. 1 crore (USD 132,426) spent, roughly six times higher compared to 12 jobs on average in other industries. With about 105 million people employed directly and indirectly, textiles business is the second largest job creator in the country, second only to agriculture. More importantly, women make up 70% of the workers in the garment industry and 73% in the handloom industry.

The appeal of the home market, as well as investments in high-end textile machinery and goods in growing fields such as technical textiles and Man-Made Fibers (MMF), will determine India's future as a textile manufacturing powerhouse. In the post-COVID circumstances, India established a Rs. 7000 crore (US$ 930 million) worth of Personal Protection Equipment (PPE) sector in just three months, making it the world's second largest producer of PPE’s.

Recent key initiatives of the Ministry during the year are as under:

PM MITRA PARKS: The government has sanctioned the establishment of seven Pradhan Mantri Mega Integrated Textile Region and Apparel (MITRA) Parks during a five-year period, costing a total of Rs. 4445 crores (US$ 590 million). Cutting-edge technology and scale, as well as foreign direct and local investment, would be attracted to the industry by world-class industrial infrastructure. PM MITRA Park will include all five elements of the '5F' model: Farm to Fibre, Fibre to Factory, Factory to Fashion, and Fashion to Foreign. The park is planned to be built in areas that are naturally conducive to the growth of the textile industry. It will allow for the creation of an integrated textiles value chain, encompassing everything from spinning to weaving to processing/dyeing and printing to garment manufacture, all in one area, lowering industry logistics costs. It is expected that each park will generate roughly 1 lakh direct and 2 lakh indirect jobs.


The Textiles Production Linked Incentive (PLI) Scheme is aimed for the high-value and growing MMF and Technical Textiles areas of the Textiles Value Chain. Manufacturing recognised MMF Apparel, MMF Fabrics, and segments/products of Technical Textiles in India will receive incentives totalling Rs. 10,683 crores (US$ 1.43 billion) over five years. This will provide a significant boost to the high-value MMF segment, which will support the efforts of the cotton and other natural fiber-based textiles industries in creating new employment and trade prospects. It will assist in the creation of 50-60 global export champions.


To strengthen the export competitiveness of Indian garments and made-ups, the government has approved the extension of the RoSCTL scheme till March 2024. The government has announced a consistent 12% goods and services tax rate on MMF, MMF yarn, MMF fabrics, and MMF garments, addressing the inverted tax structure in the MMF textile value chain. The new prices will go into effect on January 1, 2022. This will assist the MMF sector in growing and becoming a significant job provider in the country.


The Technology Upgradation Fund Scheme (TUFS) is a credit-linked subsidy programme aimed at modernising and upgrading the Indian textile sector, as well as increasing ease of doing business, job creation, and exports. The ongoing ATUFS, which has been allocated Rs 5151 crore (US$ 690 million), has been implemented with the goal of enabling and supporting MSMEs.


The Technical Textiles category is a new generation of textiles that will increase efficiencies in a variety of industries, including infrastructure, water, health & hygiene, defence, security, vehicles, and aviation. A National Technical Textiles Mission has also been established by the government to promote R&D efforts in the sector.


Samarth is a job-oriented initiative that focuses on developing the skills of jobless youth in the textile value chain for meaningful employment in the organised sector and upgrading the skills of weavers and artisans in the traditional sector. After a thorough empanelment procedure, a total of 71 textile firms, 10 industry associations, 13 state government agencies, and four sectoral organisations have been included to the scheme, with a target of 3.45 lakh beneficiaries.


The availability of natural fibres for textiles is dominated by India.

Silk: India's traditional and culture-bound domestic market, as well as an incredible array of silk outfits, have helped the country to become a world leader in the silk business. After China, India is the world's second-largest silk producer. It accounts for around 32% of global silk production. The Indian silk industry is worth estimated Rs. 75,000 crore (US$ 10.01 billion). The government has taken a variety of actions around the country to encourage investment, production, exports, and job creation in the sericulture sector.

The "Silk Samagra" central sector initiative provides R&D/Seed support, as well as technical and financial help, to improve the quality and output of silk. The scheme's main goal is to create India Atma Nirbhar in terms of bivoltine silk production and to scale up the Automatic Reeling Machine. To meet the global market demand, the brand "Indian Silk" is pushed through Product Development and Diversification.

Cotton: Under MSP Operations, CCI was able to acquire around 2.6 million bales, with approximately 0.6 million cotton farmers benefiting from disbursement of Rs. 7,600 crores (US$ 1.01 billion) directly into their bank accounts.

Jute: To increase the quality and yield of raw jute production, the Jute-ICARE (Improved Cultivation and Advanced Retting Exercise) system was developed. The Jute Raw Material Bank (JRMB) Scheme provides MSME JDP firms with jute raw materials at mill gate prices for the manufacture of jute varied goods.

Wool: With a total cash allocation of Rs. 126 crores (US$ 17 million), the Ministry of Textiles has authorised the rationalisation and continuation of the Integrated Wool Development Programme (IWDP) from 2021-22 to 2025-26. The purpose of the 'Wool Processing Scheme' is to promote the woollen sector.


Handlooms and Handicrafts:

Across the country, the Ministry of Textiles is implementing initiatives for the development of handlooms, the welfare of weavers, and the rehabilitation and promotion of the handloom sector. Handloom Export Promotion Council (HEPC) has been arranging International Fairs and domestic marketing events for weavers to boost the selling of handloom products.

However, there is a link between textiles and tourism. Crafts Tourism Village is a contemporary concept that combines artisan marketing and tourism in one location. There have already been 13 crafts villages recognised.

Focusing on Direct market Access to Weavers/Artisans:

The Ministry of Textiles is creating an e-commerce platform with the Ministry of Electronics and Information Technology to provide direct marketing platforms to handicraft artisans/weavers. In the first phase, artisans/weavers from 205 handicrafts/handlooms clusters around the country will be chosen to submit handicrafts/handlooms items to the web. Additionally, artisans/weavers are being registered on the Government E-Market Portal (GeM) so that they can sell their products directly to government ministries and departments. Approximately 1.50 million weavers have been registered on the GeM portal so far.

Promotion of Indian Toys:

As the Prime Minister stated in his "Man ki Baat" programme, everyone should "team up for toys," with a focus on the topic of Atma Nirbhar Bharat to promote the Indian Toy Industry, which includes handicrafts and handmade toy products. With the help of 14 government ministries and departments, a National Action Plan for Indian Toy Story has been developed.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.