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.
