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  • The Indian Textile industry is one of the largest in the world with a large raw material base and manufacturing strength across the value chain
  • India is the largest producer and the second largest exporter of cotton in the world. India is also the leading consumer of cotton.
  • At 50% of world production, India is the largest producer of raw jute and jute goods in the world
  • India is also the second largest producer of silk in the world
  • The Mill sector, with 3,400 textile mills having installed capacity of more than 50 million spindles and 842,000 rotors is the second largest in the world
  • With 45 million people employed directly, the textile sector is one of the largest sources of employment generation in the country
  • The Textile sector in India is dominated by women workers, with 70% of the workforce being women.
  • Market access arrangements with Japan, South Korea, ASEAN, Chile while negotiations with EU, Australia, Regional Comprehensive Economic Partnership (RCEP) countries under process.
  • Readily available market which is poised to grow in future with increased penetration of organized retail, favorable demographics, rising income levels and shift in preference for quality and branded products
  • Favorable government policies and incentives for manufacturers.
  • Abundant availability of raw materials such as cotton, wool, silk, jute and manmade fibres.
  • Comparative advantage in terms of skilled manpower and cost of production over major textile producers across globe.
  • Focused and favorable policies instituted by the government will give the industry a fillip.
  • Presence of entire value chain for textile production beginning from production of natural fibre to the production of yarn, fabric and apparel within the country giving edge over countries like Vietnam, Bangladesh etc.
  • Presence of traditional skill sectors i.e. hand loom and handicraft
  • The Textile industry contributes to 7% of industry output in value terms, 2% of India’s GDP and to 15% of the Country’s export earnings
  • India has the largest acreage with 12.2 million hectares under cotton cultivation, which is around 42% of the World area of 29.3 million hectares. Producing an estimated 6.5 million tons during 2017-18
  • 100% FDI is allowed under the automatic route in the sector

Provisions of Budget 2018-19

  • The allocation to the Ministry of Textiles has increased by 14 per cent to USD 1.1 billion

Amended Technology Upgradation Fund Scheme

  • There is a provision of one-time capital subsidy for eligible benchmarked machinery at the rate of 15% for garmenting and technical textiles segments with a cap of USD 4.6 million and at the rate of 10% for weaving, processing, jute, silk and handloom segments with a cap of USD 3 million. An outlay of USD 2.7 billion has been approved for seven years to meet the committed liabilities of USD 1.9 billion and USD 800 million for new cases under ATUFS.

Integrated Skill Development Scheme

  • The Ministry of Textiles is implementing Integrated Processing Development Scheme (IPDS) to enable the textile processing sector in meeting environmental standards through appropriate technology including marine, riverine and Zero Liquid Discharge (ZLD). The Government of India provides financial assistance up to 50 % of project cost for Common Effluent Treatment Plants (CETPs) subject to a ceiling of USD 11.5 million. Ministry has approved 4 projects in Rajasthan and 2 projects in Tamil Nadu.

Infrastructure Development Schemes

  • Scheme for Integrated Textile Park (SITP)
  • Integrated Processing Development Scheme
  • Mega Textile Clusters Scheme
  • Manmade fibre and filament manufacturing
  • Value added and specialty fabrics manufacturing
  • Fabric processing set-ups for all kind of natural, synthetic and specialty textiles
  • Apparel
  • Retail brands
  • Rieter (Switzerland)
  • TrUtzschler (Germany)
  • Soktas (Turkey)
  • Zambiati (Italy)
  • Bilsar (Turkey)
  • Monti (Italy)
  • CMT (Mauritius)
  • E-land (S. Korea)
  • Nissinbo (Japan)
  • Marubeni (Japan)
  • Skaps (USA)
  • Ahlstorm (USA)
  • Terram (UK)
  • Strata Geosystems (USA)
  • Marks & Spencer (UK)
  • Zara (Spain)
  • Mango (Spain)
  • Promod (France)
  • Benetton (Italy)
  • Espirit (USA)
  • Levi’s (USA)
  • Forever 21 (USA)
  • FDI grew 2.5 times - from USD 0.5 billion (2010-14) to USD 1.5 billion (2014-18)
  • 8 Apparel and garment manufacturing centres set up North Eastern Region
  • Integrated Textile Office Complex set up at the Indian Institute of Handloom Technology (IIHT) in Varanasi
  • India Handloom Brand launched
  • Special Textile Package of INR 6000 crore approved, to attract investment of USD 11 billion and create one crore jobs
  • 200 new production units have come up in existing textile parks in the last two years generating jobs for 11,000 persons
  • 9.5 lakh people trained
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