What is the news?
The government recently cleared the PM MITRA scheme to set up seven mega textile parks over five years.
|Read more: Government has approved setting up of 7 Mega Integrated Textile Region and Apparel (PM MITRA) Parks|
What does the scheme mean for the Textile industry?
Help to address the bottlenecks: The textile and apparel industry in India is deeply fragmented and due to past policies, including those meant for the protection of small-scale industries, could not scale up. The Scheme will break this bottleneck and help the textile sector grow and achieve global competitiveness.
Make the textile sector more competitive: One of the key factors affecting the global competitiveness of India’s textile and garment exports is the logistics cost. The logistics cost is high due to the fragmented nature of the sector. Mega integrated textile parks could be an answer to this.
Help in scaling up of textile sector: The scheme will also help businesses to scale up and to make value-added products leveraging the abundant raw material resources available in the country
Open to all segments of the textile and apparel industry: The government earlier announced a production-linked incentive (PLI) scheme. But this scheme is limited to the man-made fibre segment and technical textiles alone. PM MITRA scheme is open to all segments of the textile and apparel industry. This also includes technical textiles.
|Read more: Production-Linked Incentive or PLI Schemes and its challenges – Explained, pointwise|
Provide additional benefits to the sector: All benefits offered by states either under their textile policy or under their industrial policy will be available to the units coming up under PM MITRA.
Further, the benefit of tax refund will also be available under the Rebate of State and Central Taxes and Levies scheme. So, the benefits available under PM MITRA is an additional boost to the sector.
Source: This post is based on the article “How seven mega textile parks will help the industry” published in Livemint on 08th October 2021.