Growth of Indian textiles relies on domestic market, infrastructure
29 December 2021, Mumbai:
India’s growth as a manufacturing hub for textiles will depend on the attractiveness of its domestic market and on investments in high-end textile machinery in emerging areas like technical textiles and manmade fiber. Various initiatives were taken in 2021 including approving the setting up of seven Pradhan Mantri Mega Integrated Textile Region and Apparel Parks (MITRA).
Under this scheme world-class industrial infrastructure is aimed at attracting cutting edge technology and foreign and local investment in the sector. The parks are aimed at generating around one lakh direct and two lakh indirect employment per park. A uniform goods and services tax rate at 12 per cent has been levied on manmade fiber, yarn, fabrics and apparel that has addressed the inverted tax structure in the manmade fiber textile value chain.
This is expected to help the manmade fiber segment grow and emerge as a big job provider in the country. The production linked incentive scheme for textiles is especially focused at high value and expanding manmade fiber and technical textile segments of the textile value chain. The textile and apparel industry in India contributed two per cent to the overall GDP of India in 2019 and 11 per cent to total manufacturing.
