Textile industry promises to march ahead in 2014
The Indian Textile Industry counts among the leading textile industries in the world. Textile is one of the oldest, largest and significant industrial sectors in India. The Indian textile industry is in a stronger position now, than it was in the past few decades.
A B Joshi, Textile Commissioner
The Indian Textile Industry counts among the leading textile industries in the world. Textile is one of the oldest, largest and significant industrial sectors in India. The Indian textile industry is in a stronger position now, than it was in the past few decades. The industrial growth for textiles has now accelerated to 9-10 per cent annually. Role of Indian textiles sector is manifold. It not only provides a basic necessity, but is an important contributor to the GDP, employment, industrial output and exports of India.
All the segments of the textiles value chain are doing well at present both in the domestic and global markets. During the year 2013, the country textile and garment industry may witness an increase of 15-20 per cent in exports. The industry is expected to touch US $220 billion by 2020. The advancement of the textiles industry can be seen from the increased production of spun yarn which registered an increase of about 10 per cent during April-Oct 2013 and cloth production which grew by 2 per cent during April-Oct 2013 in comparison to the same period of last year. Garment exports from India grew by 19 per cent in the period July 2012 – July 2013 to touch US $1.27 billion, on the back of increasing demand in developed economies such as the US, according to data released by the Apparel Export Promotion Council (AEPC).
The flow of expansion of orders in India is expected to fetch additional Euro 2.19 billion businesses in the country because world-renowned chain stores and international brands have preferred expanding their sourcing of the merchandise from India. As a result, factory compliant manufacturing in India has surged with new and unprecedented export orders in the current season. Recently, a meeting of the High Level Committee on Manufacturing (HLCM) led by Prime Minister Dr Manmohan Singh decided to facilitate the rapid scaling of competitiveness of the garment sector in the country through a comprehensive package of measures. The textile and garment makers of India are eyeing 15-20 per cent growth in exports this year as the Textiles Minister Dr K Sambasiva Rao has assured full support to the industry and the Indian Government is planning to implement some new measures to boost exports.
Some of initiatives taken by the government to further promote the industry are as under:The Government of India plans to set up a Rs 100 crore venture capital fund to provide equity support to start-ups in the textile sector, in order to encourage innovative ideas.
The Government has allowed 100 per cent FDI in the sector through the automatic route. In order to make textile processing units more environment-friendly and globally competitive, the Cabinet Committee on Economic Affairs (CCEA) has approved an Integrated Processing Development Scheme (IPDS) with an investment of Rs 500 crore.
Under the Technology Upgradation Fund Scheme (TUFS), the textile industry of India will receive subsidy on the capital expenditure done on Hi-tech approved machinery. The industry is also expected to attract Rs 40,000 crore in the form of investments over the next six months. Government Resolution on Revised Restructured TUFS has been issued for operation of scheme in the 12th Five Year Plan (2012-17).
The Government of India has launched The Integrated Skill Development Scheme (ISDS) as a pilot scheme in 2010 to cater to skilled manpower needs of the Textile and related sectors. With the successful implementation of the Pilot Scheme, Government has extended the scheme in the 12th Five Year Plan with the objective of training 15 lakh workers with an outlay of Rs 1,900 crore. The scheme for the 12th Plan envisages participation of training institutes associated with the Ministry, State Government agencies and the private sector as implementing agencies. The scheme has three Components – Component-I f