2021- A Year of Game Changing Reforms for Ministry of Textiles

2021- A Year of Game Changing Reforms for Ministry of Textiles

Part of: Prelims 

India has the unique advantage of the entire value chain for textile production present within the country vis-à-vis other competing nations which have to import fibre, yarn and fabric to meet their requirement for garment production. It has a large market, which is growing rapidly with affordable manpower. 

• The domestic textile and apparel production is approx US$ 140 Bn including US$ 40 Bn of Textiles and Apparel export. 
• The textile and apparel industry contributed 2% in the overall GDP of India in 2019 and 11% to total manufacturing in GVA.
• Widely referred to as a change agent owing to its transformative powers, this industry alone has the capacity to generate around 70 jobs in garmenting and an average of 30 jobs overall for every INR 1 crore (USD 132,426) invested as compared to 12 jobs created on an average in other industries. 
• With direct and indirect employment of close to 105 million people, this industry is the second largest employment generator in the country, next only to agriculture.
• More significantly, women constitute 70% of the workforce in garment manufacturing and about 73% in Handloom.

Supporting Factors

• Availability of almost all types of raw materials
• Existence of total value chain
• Young demography of India
• Entrepreneurial mindset of industry leaders
• Continuous support of Government
• Technology up gradation
• Focus on innovation
• Strong presence of support industries will help this sector grow at a healthy pace in coming decade. 

Game changing Reforms

• Government approved setting up of 7 Pradhan Mantri Mega Integrated Textile Region and Apparel (MITRA) Parks with a total outlay of Rs. 4445 Crores
  • PM MITRA Park will encompass all ‘5F’ components: Farm to Fibre; Fibre to Factory; Factory to Fashion; Fashion to Foreign. 
  • Under PM MITRA Parks World-class Industrial infrastructure would attract cutting age technology/scale and FDI / local investment in the sector
  • PM MITRA Parks to generate around 1 Lakh direct and 2 lakh indirect employment per park
• Production Linked Incentive (PLI) Scheme for Textiles is specially focused at high value and expanding MMF and Technical Textiles segments of Textiles Value Chain
• Government approved continuation of RoSCTL scheme up to March 2024 to boost export competitiveness of Indian apparel and made-ups
• Under SAMARTH Scheme, a total of 71 textile manufacturers, 10 industry associations, 13 state government agencies and 4 sectoral organizations on-boarded with an allocated target of 3.45 lakh beneficiaries. Samarth is a placement oriented programme targeting skill development of unemployed youth in the value chain of textiles for gainful employment in organized sector and skill upgradation of weavers & artisans in traditional sector.
• Ministry of Textiles approved rationalization and continuance of Integrated Wool Development Programme (IWDP) from 2021-22 to 2025-26 with total financial allocation of Rs. 126 Crore
• A National Action Plan for Indian Toy Story has been made with collaboration of 14 Ministries/Departments of Government of India.

News Source: PIB