FDI brought investment of US $ 1522.23 million in the textile sector from 2017-2022
The Union Minister of State for Textiles, Smt. Darshana Jardosh in a written reply to a question in Lok Sabha today shared that, as per Economic Survey 2021-22, the employment in unorganized sector in 2019-20 was 43.99 Crore.
The Government has taken following steps to modernize the textile industry, enhance export and to promote FDI in textile sector on pan-India basis:
i) Government has approved setting up of Seven PradhanMantri Mega Integrated Textile Region and Apparel (PM MITRA) Parks in Greenfield/Brownfield sites with an outlay of Rs. 4,445 crore for a period of seven years upto 2027-28. These parks will enable the textile industry to become globally competitive, attract large investment and boost employment generation.
ii) Government has approved the Production Linked Incentive (PLI) Scheme for Textiles, with an approved outlay of Rs 10,683 crore, to promote production of Man Made Fibre (MMF) Apparel, MMF Fabrics and Products of Technical Textiles in the country to enable Textile sector to achieve size and scale and to become competitive.
iii) Government has allocated an outlay of Rs 1480 crore for the National Technical Textiles Mission (NTTM) to promote and develop technical textiles sector in India.
iv) Silk Samagra-2 scheme is being implemented from the year 2021-22 to 2025-26 for development of sericulture industry in the country.
v) Government is also implementing various schemes/ programmes such as SAMARTH- Scheme for Capacity Building in Textile Sector, National Handloom Development Programme, Raw Material Supply Scheme, National Handicraft Development Programme, Comprehensive Handicrafts Cluster Development Scheme, Integrated Wool Development Programme etc. to promote and develop indigenous textile sector.
vi) India has so far signed 13 Free Trade Agreements (FTAs) including recently concluded Comprehensive Economic Partnership Agreement with UAE and Economic Cooperation and Trade Agreement with Australia; and 6 Preferential Trade Agreements with various trading partners. Government has entered into negotiations for FTA with trading partners such as the United Kingdom, European Union, Canada for enhancing market access of Indian products, including textiles, keeping in mind the national interest and domestic sensitivities.
vii) Market Access Initiative scheme provides financial support to various Export Promotion Councils and Trade Bodies engaged in promotion of textiles and garments exports, for organising and participating in trade fairs, exhibitions, buyer-seller meets etc.
viii) Government has put in place liberal and transparent investor-friendly Foreign Direct Investment (FDI) policy. 100% FDI is allowed in the textile sector under the automatic route. The amount of investment brought through FDI in the textile sector from 2017-2022 was US $ 1522.23 million.
Following MoUs have been signed with other countries to boost textile industry in the country:
- MoU with National Agriculture Food Research Organization, Japan to promote collaborative research in the field of silkworm and silk industry.
- MoU signed between Central Silk Board and “Uzbekipaksanoat”, Uzbekistan on cooperation in Sericulture and Silk industry.
- MoU signed between M/o Textiles, Govt. of India and Department of Agriculture, Fisheries and Forestry, Govt. of Australia for establishing a Joint Working Group on cooperation in the field of Wool and Woolen products.
- MoU between India and Sri Lanka on procedural arrangements for import of apparel articles from Sri Lanka to India on Tariff Rate Quota under India Sri Lanka Free Trade Agreement.
- MoU between India and Sri Lanka on cooperation in the development of Small and Medium-sized Enterprises in handloom, powerloom and textiles.
- MoU signed between Textiles Committee, Govt. of India and M/s Nissenken Quality Evaluation Centre, Japan.
Government is implementing various schemes such as PM-MITRA, PLI, NTTM etc. for undertaking numerous technology centric approaches for increasing production in the textile sector all over the country.
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AD/NS