Wings to Boost Indian Textile Industry

Backgrounder

The Textile Industry in India occupies a unique place in our country. The Industry with its age-old heritage has redefined as fast emerging market with half a billion middle income population in its basket by 2030. One of the earliest to come into existence in India, it accounts for 14% of the total Industrial production, contributes to nearly 30% of the total exports and is the second largest employment generator after agriculture with the current work population of more than 35 million people . Though was predominantly unorganised industry even a few years back, the scenario started changing after the economic liberalisation of Indian economy in 1991. Realising the growing demand, the Ministry of Textiles has taken special initiative to nurture and encourage the industry with innovative schemes and lucrative incentives.

The fate of the small handloom weaver, Reena has suddenly changed when a financial assistance from the government has poured into after her long battle for survival. To save the debt-ridden handloom weavers, the government of India has introduced Revival, Reform and Restructuring Package for handloom sector. The scheme has been announced on February 28, 2011, and implemented from December 3, 2012. A financial package of 3000 crore rupees on acknowledging the financial distress faced by handloom sector has been sanctioned to implement the scheme.

The government has also taken special efforts to upgrade the technology alongwith the welfare of the handloom weavers. In order to facilitate modernisation and technology upgradation of Textiles Miles, government has launched technology Upgradation Fund Scheme for Textiles and Jute Industry. The objective of the scheme is to leverage investment in technology upgradation in the Textiles and Jute Industry. It is a credit linked scheme and provides reimbursement of 5% point on the interest charged by the lending agency of project of a technology upgradation in conformity with the scheme, fro spinning machinery, the scheme will provide 4% for new stand alone/replacement/modernisation of spinning machinery and 5% for spinning units with matching capacity in weaving/knitting/processing garmenting. Under TUFS (01.04.1999 to 28.06.2010) 28302 units with a project cost of Rs 207747 crore have been sanctioned term loan of Rs 85091 crore. In 2013-14, a total amount of 414.93 crore rupes was sanctioned under the scheme.

The Ministry of Textiles has initiated the Scheme for Integrated Textiles Parks (SITP) from August 2005, to provide infrastructure support to the textile industry. Under the scheme, 40 projects with the total project cost of Rs. 4121.23 crore were sanctioned in 2012-2013 and onother 21 projects of textile parks have been sanctioned till 2013. The objective of the Scheme is to establish integrated and hi-tech Textile Park with world-class infrastructure and manufacturing facilities based on Public-Private Partnership.

Several schemes have also been taken for the welfare of Powerloom workers though Group Insurance Scheme. As per the modified scheme, the total premium each Rs 470/- out of which Rs 290/- is to be borne by the office of the Textiles Commissioner and Rs 100/- is being paid by LIC. Only a premium of Rs 80 is to be paid by the Powerloom weavers for getting the benefits under the said scheme. The scheme is in operation since July 2003. Till the may 2013, altogether 35, 063 workers have been enrolled into the industry with the total share of Rs. 1,01,68,270/-

Government is also very much keen to provide modern powerloom sectors to compete with global market. A group workshed scheme for decentralized Powerloom Sector under the Xth five-year plan has been introduced with the aim to setting up of Powerloom Parks with modern weaving machinery to enhance their capabilities to compete with global market. Under the scheme, minimum four weavers should form a group with 48 modern looms of single width or 24 wider width looms and per person minimum four looms will be allowed to be installed. The maximum subsidy will be 12 lakhs per person under the scheme. The scheme does not envisage more than 500 looms under one project proposal.

The Ministry of Textiles has emphasised on the overall development of the powerloom sector and to achieve this, the Integrated Scheme for Powerloom Cluster Development is being implemented from 2007 with components like Marketing Development programme for Powerloom Sector, Exposer visit of Powerloom Weavers to other Clusters, Powerloom Cluster Development , Development and UPpgradation of skills and Survey of the Powerloom Sector.

The computer aided design system in the textile sector is playing much important role in the growing market trend. To facilitate creation of improved and new designs in the production of textiles, the Government has sanctioned and operationalised 17 CAD Centres in different clusters to provide dedicated design development and manufacturing support to the sectors. During the 11th plan, Government is allocating Rs.10 lakh per year towards expenditure of one CAD centre each. These CAD centre have been upgraded with latest software and hardware system.

With the continous and sustained efforts by the Government, the Indian textile sector will certainly have its share in the growth story buoyed by both strong domestic consumption as well as export demand.

DS/SJM