Committee on Estimates presented “PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks Scheme and Revival Efforts for Sick Textile Units/ PSUs” Report

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Watch News Today

Posted 20 Feb 2024

2 min read

Indian textile industry is a key contributor to country’s economy with current contribution of around 1% of GDP.
- It contributes to over 15% of country’s total exports and employs over 45 million people.
- India is 3rd largest exporter of Textiles & Apparel in world.
- India targets $250 billion textile production and $100 billion exports by 2030.

Current challenges of Textile Industry
- Competition from cheaper imports from countries like Bangladesh, China, and Turkey.
- Highly fragmented industry. For instance, fabrics woven in Tamilnadu are processed in Gujarat, ending up in Bengaluru for garmenting.
- High input costs (power and capital), poor access to credit, and declining exports.
- Other Sickness: Lack of modernization by textile mill owner; technical obsolescence; unskilled labourers; poor productivity etc.

Recommendations
- Framing comprehensive National Textile Policy to enhance global competitiveness of Indian textile industry.
- Prepare a time-bound action plan involving all stakeholders for resolving issues related to sick textile units.
- Revival efforts for non-operational sick textile undertakings should involve private investment, potentially through establishment of PM MITRA PARKS.
- Vertical integration of powerloom sector beyond ambit of PM MITRA Parks to convert textile industry from fragmented to integrated.

PM MITRA Parks Scheme makes India globally competitive, attracting large investments, enhancing skills and reducing costs in sector.
Amended Technology Upgradation Fund Scheme (ATUFS) for technology upgradation and modernization.
Scheme for Capacity Building in Textile Sector (SAMARTH) to address skilled manpower requirement across textile sector.