Economic Survey 2022: PLI scheme for textile industry to attract investments in next 5 years
01 February 2022, Mumbai:
Further in a major support to enhance the competitiveness of the sector, the government notified the setting up of 7 PM mega integrated textiles region and apparel park (MITRA) parks in October 2021 with a total outlay of Rs. 4,445 crore.
Economic Survey 2002 has estimated the production-linked incentive (PLI) scheme will result in fresh investment of Rs 19,000 crore in the textile sector over the next five years. This could result in a cumulative turnover of over Rs 3 lakh crore and create over 7.5 lakh additional job opportunities in this sector.
The textile industry is the second largest employment generator in the country, next only to agriculture. “In the last decade, close to Rs 203,000 crore have been invested in this industry with direct and indirect employment of about 105 million people, a major part of which is women,” the survey said.
Despite being deeply affected by the lockdowns, the industry has shown remarkable recovery, as reflected by the Index of Industrial Production of 3.6 percent during April-October 2020.
“Production-Linked Incentive (PLI) Scheme for Man-Made Fiber (MMF) segment and technical textiles, notified in September 2021, for enhancing India’s manufacturing capabilities and enhancing exports will focus on promotion of 40 MMF apparel and 10 technical textiles lines and create global champions,” the survey said.
“Further in a major support to enhance the competitiveness of the sector, the government notified the setting up of 7 PM mega integrated textiles region and apparel park (MITRA) parks in October 2021 with a total outlay of Rs. 4,445 crore.
The scheme is expected to further the vision of Atmanirbhar Bharat and to position India strongly on the global textiles map,” the survey said.
It added that PM MITRA, inspired by 5Fs—farm to fibre to factory to fashion to foreign—will strengthen the textile sector by developing integrated large-scale and modern industrial infrastructure facilities for the entire value chain of the textile industry.
It is expected to reduce the logistics cost and will help India in attracting investments, and boosting employment generation, it said.
CREDITS: Money Control
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