Govt to set up three textile parks in each state to promote industry

Deepak Kumar | The Dollar Business

Citing the development of textile parks as a key agenda, the government on Wednesday proposed to establish at least three such units in each state to encourage textile production and push exports. “The government has given an utmost importance to selecting ideal locations for these textile parks. We urge the state governments to participate in this mission and promote domestic production. We aim to establish at least three such units in each state to strengthen India’s textile industry,” said Santosh Kumar Gangwar, Minister of Textiles. Last year, the government agreed to establish 22 new textile parks in various states, taking the total number of such facilities to 72. Expressing concern over the challenges faced by the textile industry and issues related to environmental clearance, Gangwar asked states governments to take appropriate measures to ensure smooth functioning of textile producing units. The government has taken several initiatives to push India’s textiles industry. Last week, the Commerce Ministry included textile and apparel on the list of products for giving duty benefits under the Merchandise Exports from India Scheme (MEIS). Textile and apparel exporters have been facing competition in the international market due to lack of FTAs with EU and the US and higher cost of financing as compared to their counterparts in Vietnam and other countries. Industry leaders say that the duty benefits under the MEIS will enhance their competitiveness. The government has also increased the budget allocation for MEIS from Rs.18,000 crore to Rs.21,000 crore per annum. “The duty benefit amendments as part of the allocation have been increased from Rs.18,000 crore to Rs 21,000 crore for MEIS. Textile and apparel sector has emerged as one of the major beneficiaries of the latest amendments in MEIS,” Ministry of Textiles had said on Tuesday. In 2014-15, India overtook China to become the world’s largest cotton producer.  Overall domestic production this year is likely to touch last year’s figure despite massive damage of crops in northern part of the country. To encourage cotton production, the government has taken several initiatives such as establishing incubation centres in Orissa and Haryana, starting minimum support price for cotton and launching electronic mode of payment for cotton farmers. “We have constantly been working to overcome major challenges in the textile sector. Some of the issues that we are currently looking at include NTC modernisation, technology promotion and infrastructure up-gradation,” said S K Panda, Chief Secretary, Ministry of Textiles.  

November 04, 2015 | 6:06pm IST.