Ministry of Textiles20-February, 2014 11:41 IST
Growth of Textile Industry

 

BACKGROUNDER

 

  The contribution of the textile industry in terms of percentage to industrial production and export earnings is constant at 12% during the last three years and current year. Textile Industry generated direct employment to over 35 million people.

    In order to increase the employment in the textile industry Government  has launched various schemes namely integrated Skill Development Scheme(ISDS) and Scheme for Integrated Textile Parks(SITP). The role of the Government is to ensure conducive policy environment and encourage investment. Government has taken various steps and launched schemes namely Technology Upgradation Fund Scheme(TUFS), SITP, ISDS, etc. In the direction of encouraging and catalyzing investment in Textile sector. For modernisaton  of weaving sector, subsidies (both interest reimbursement (IR) and Capital subsidy (CS)have been increased from 5% to 6% and 10% to 15% respectively. Margin money subsidy has been increased from 20% to 305 in TUFS. Integrated Processing Development Scheme (IPDS) with a budget outlay of Rs.500 crores has been approved for modernisation of Processing sector. The second quarter of the current financial year , Textile sector has added to 66,000 jobs . Infact,62% of total jobs created in the textile sector were contributed by the exporting units. Exporters gave jobs to 41,000 people. Textile sector was one of the few sector showing a growth in the index of the industrial production figures .  As per the latest official figure, while total industrial production contracted to 0.21% in Apr-Nov, Textile sector output rose to 3.7%.

 

     There is no shortage of cotton /yarn in the country to meet the requirement of domestic textile industry .For the current cotton season 2013-14(oct-sept) there is an estimated total availability of cotton at 427 lakh bales against the total estimated demand at 387 lakh bales which is adequate to meet the requirement of textile industry.

   To encourage exports including export of processed clothes, incentives are available under the Foreign Trade Policy namely Interest subvention , Market Access Initiative(MAI), Market Development Assistance(MDA)Schemes and Focus Market & Focus Product Schemes. The Ministry of Textiles has adopted four pronged strategy for Textiles exports namely larger textiles trade shows, skill development initiatives, compliance programes and duty drawback schemes. A provision of Rs.500 crore has been made in the 12th plan for introducing a scheme for Integrated Processing Development.

Source: Textile Ministry

DS/SJM

 


(Release ID :103983)