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States in $500-BN RAce!

Jul 01, 2015
States in $500-BN RAce!

Some States have upped their ante in textiles, declaring it a ´sunrise industry´ and by improving infrastructure and policies, they promise to lend a helping hand to the Indian Government´s efforts to carve out a bigger slice in global textile trade. Joseph S and Karthik M recount the story with details.

With computer and software industry reaching a saturation point, States are now turning their attention to a new ´sunrise´ industry ´ textiles. Software parks are passe, textile parks are in. The irresistible lure is the potential of the Indian textile industry to grow five-fold in the next 10 years to touch the $500 billion mark on the back of growing demand from the swelling rank of younger generation eyeing changing fashions. The newly-emerging technical textiles with its double-digit growth have added to the glamour. A study by management consultancy firm, Wazir Advisors and PCI Xylenes and Polyester says that the country´s textile industry, which is currently estimated at $108 billion, can grow to $500 billion by 2025.

The itch began two years ago and is continuing at a feverish pace with some States tripping over one another to woo investment in textiles. Quite recently, the Maharashtra Chief Minister Devendra Fadnavis, who has taken avid interest in textile projects, laid the foundation for a Rs 1,243-crore textile park at Amravati, which is expected to give direct employment to about 3,700 people. ´Similar parks would be established in eight other places in the state´s cotton-belt at Yavatmal, Buldana, Jalgaon, Aurangabad, Jalna, Parbhani, Beed and Nanded,´ declared the CM.

A few States have announced well-defined textile policies. At the forefront are Maharashtra and Gujarat. Says Chandrakant Patil, Maharashtra Textile Minister: ´After the declaration of State Textile Policy, a total of 769 projects with investment of Rs 6,690 crore have been established.´

He adds: ´ The State Government´to encourage investors in textile sector´has launched two important schemes: interest subsidy and capital subsidy scheme. These schemes are applicable to those units which are covered under the parameters of TUF scheme of the Government of India.´

Speaking on Maharashtra Industrial Development Corporation´s (MIDC) role towards the development of textile industry in Maharashtra, Subhash Desai, Minister of Industries, Government of Maharashtra, said, ´MIDC´s role is to support the textile industry more and more. We are ready with the infrastructure. We have already developed Nandgaonpeth textile park in Amravati. The concept is picking up. As many as eight prominent industries have already started setting up their units. Since those areas are cotton-growing areas, local farmers will get good price for their agricultural produce. Likewise, we are also encouraging textile parks near Ichalkaranji near Kolhapur, Bhiwandi and Malegaon. All these sectors will get active support from the State Government. Apart from the eight currently-planned textile parks in Yavatmal, Buldana, Jalgaon, Aurangabad, Jalna, Parbhani, Beed and Nanded, we are planning to launch 50 more textile parks, which will be scattered all around Maharashtra.´

On Maharashtra´s textile policy, Desai added: ´We also plan to introduce our new textile policy very soon. In this new textile policy, there will be more and more incentives for this sector. Again, we are trying to revitalise the old spinning mills. Maharashtra has many spinning mills, but most of them are not functioning well. Some have closed down, while some are trying to improve, but we will focus on this. We will provide a package of incentives for these text