Wednesday, January 19, 2022

India’s Textile Industry | Following the footprints of Growth and Success

The textiles and apparel industry in India has strengths across the entire value chain from fibre, yarn, fabric to apparel. Be it traditional handloom or the organized textile industry, the textile sector is highly diversified with a wide range of segments.

To weave a bright future ahead, the government has approved the PLI Scheme for textiles for MMF Apparel, MMF Fabrics and 10 segments/ products of Technical Textiles. The Scheme has a budgetary outlay of Rs. 10,683 crores.

Let’s learn more about the Production Linked Incentive (PLI) Scheme for Textiles.

PLI scheme for Textiles will promote the production of high-value MMF fabrics, garments and Technical Textiles across the country.

The incentive structure has been formulated in such a manner that the industry will be encouraged to invest in fresh capacities in these segments. This will provide a major push to the growing high-value MMF segment which will further complement the efforts of the cotton and other natural fibre-based textiles industry. It will also lead to the creation of new opportunities for employment and trade.

It is estimated that over the period of five years, the PLI Scheme for Textiles will lead to a fresh investment of more than Rs.19,000 crores. It is also expected to produce a cumulative turnover of over Rs.3 lakh crores and create additional employment opportunities of more than 7.5 lakh jobs in the sector. The Scheme will help in empowering women and increasing their participation in the formal economy.

PLI will also help in attracting investment in the Textile Sector. Let’s get to know, How?

The Technical Textiles segment is a new age textile. Its application in several sectors of the economy, including infrastructure, water, health and hygiene, defence, security, automobiles, aviation, will help in improving the efficiencies.

Also, there are two types of investment possible with different sets of incentive structures. Any entity willing to invest a minimum of ₹300 crores in plant, machinery, equipment and civil works to produce products like MMF Fabrics, Garment or the products of Technical Textiles, shall be eligible to apply for participation in the first part of the Scheme.

In the following part, any person, firm or company willing to invest a minimum of ₹100 crores shall be eligible to apply for participation in the 2nd part of the Scheme. In addition, priority will be given to investment in Aspirational Districts, Tier 3, Tier 4 towns, and rural areas. This will help in incentivizing the industry to move towards the backward areas.

Besides, the government has also launched a National Technical Textiles Mission in the sector for supporting Research & Development endeavours.

It is worth noting that the PLI scheme for Textiles is a part of the overall announcement of PLI Schemes for 13 sectors that have been made during the Union Budget 2021-22, with an outlay of Rs.1.97 lakh crore. With the announcement, the minimum production in India is expected to be around Rs.37.5 lakh crores over 5 years and the minimum expected employment over 5 years is nearly 1 crore.

PLI for Textiles along with Rebate of State and Central Taxes and Levies, Remission of Duties and Taxes on Exported Products and measures like providing raw material at competitive prices and skill development will herald a new age in textiles manufacturing, thus, helping India regain its historical dominant status in global textiles trade.

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