Published on October 14, 2013
The Indian textile industry is having good presence in the economic life of the country. Textile industry is providing one of the basic necessities of life, apart from that this industry plays a vital role by contributing to industrial output, export earnings for country and employment generation. There was textile trade in India during the early centuries.
Textile industry contributes around 14% to industrial production, 4% to GDP (Gross Domestic Product), and 11% to country’s export earnings. Textile sector is the second largest employment provider after agriculture for India. So, growth of this industry directly improves the economy of the nation. Indian textile industry is growing at healthy rate because of strong domestic consumption as well as export demand. Having good availability of raw material such as cotton, wool, silk and jute with skilled workforce has made India a sourcing hub. As per Technopak’s Textile & Apparel Compendium 2012 Indian Textile and apparel industry is expected to reach the size of US $221 billion by 2021. Cloth production by handloom and hosiery has increased by 3% and 12% respectively during June 2013. Approx 35 million people are directly getting job by textile manufacturing activities. Indirect employment from textile includes manpower engaged in agricultural based raw-material production like cotton and related trade and handling could be stated to be around another 60 million.
The Government of India has promoted a number of export promotion policies for the Textile sector in the Union Budget 2011-12 and the Foreign Trade Policy 2009-14. Government has allowed 100% FDI in textile under the automatic route. Due to policy measures initiated by the Government in the recent past, this industry is growing better that it was in the last six decades. Textile Industry which was growing by 3-4 % from last six decades is now growing at the annual rate of 8-9%. This week India’s Minister of Textiles K Sambasiva Rao said that a new textile policy aimed at providing stability and covering a wide range of issue would be cleared in a couple of months. He said that his Ministry would set up a single window clearance division that will help for quick approvals for new units. Mr. Rao said that at present, those who want to start a new unit need to take 50 approvals from various departments that would ease this process by getting the requisites clearances. He also informed that information regarding continuation of Technology Fund Schemes (TUSF) during the 12th Five-year plan will announced in next few days. Such schemes provides interest subsidy for purchase of machinery and upgrading technology. For this Govt. has endorsed Rs.119.5 billion during 12th plan period. He suggested that textile entrepreneurs should set up their own Research & Development (R&D) institution; also Textile Ministry will contribute 50% of the total capital for setting up such institution. He added that in case of need of skilled manpower his Ministry is ready to grant Rs.100 million if textile industry prepares a plan to train new recruits. Such policies will help Indian Textile producers to expand their business as well as to make new improvements in the manufacturing processes. Haryana government announced the deduction in VAT (Value Added Tax) rate for textile, including woolen and home textile, from 12.5% to 5%. In Rajasthan the textile industry is expecting about 100 billion new investment in next seven years, due to several policies made by Rajasthan government. New policies will include interest subsidy for setting up new industries and reimbursements.
