Initiatives of the New Government in the Textiles Sector
The new government, under the leadership of Prime Minister Shri Narendra Modi has stressed an economic vision based on increasing production, export and generating employment giving particular attention to:
· Generate productive employment opportunity for the youth
· Inclusive and participative growth
· Skill, Scale and Speed
· Make in India brand.
· Zero defect – Zero Effect (on environment)
· Adarsh Gram
India’s textiles and clothing industry is one of the mainstays of the national economy. It is also one of the largest contributing sectors of India’s exports contributing nearly 13.25% of the country’s total exports basket. The textiles industry is labour intensive and is one of the largest employers. Textile industry has realized export earnings worth of 41.57 billion USD in 2013-14
The Textile industry has two broad segments, namely handloom, handicrafts, sericulture, powerlooms in the unorganized sector and spinning, apparel, garmenting, made ups in the organised sector.
New Government has taken many initiatives for the development of the textiles sector. Some of the initiatives are as follows.
Setting up Integrated Textile Parks
The Scheme of Integrated Textile Parks is one of the flagship schemes of the Ministry of Textiles. It aims to assist small and medium entrepreneurs in the textile industry to clusterize investments in textile parks by providing financial support for world class infrastructure in the parks.
The implementation of the scheme was held up during the last one year due to administrative bottlenecks and no sanction was given for new parks. The new government moved swiftly to resolve the issues and 13 new textiles parks were approved by the Project Approval Committee (PAC) chaired by the Minister of State for Textiles (independent Charge) Shri Santosh Kumar Gangwar. While these 13 textile parks will receive a grant to the extent of Rs 520 crores from government for infrastructure development, they are estimated to bring in private sector investment of about Rs 3240 crores into the sector and generate direct employment for about 35,000 persons over the next three years. Besides, a fresh advertisement would be issued calling for proposals for more ITPs for utilization of the balance provision during the 12th plan period.
During April-Aug 2014, the textile exports registered a growth of 9.5% against the corresponding period of last year, while RMG exports grew 17.7% and carpets 22.2%,
With a vision to create an export friendly economy the government introduced several initiatives –
· Duty free entitlement to garment exporters for import of trimmings, embellishments and other specified items increased from 3% to 5%. This initiative is expected to generate an additional RMG exports estimated at Rs.10,000 Crore.
· The government has also proposed to extend 24/7 customs clearance facility at 13 airports and 14 sea ports resulting in faster clearance of import and export cargo.
· The proposal for imposing duty on branded items was dropped providing relief to the entire value chain.
Development of Handloom:
Specific steps have been initiated for revival of handloom industry based on its inherent strength for production of high value items. Focus is on assisting weavers with designs, marketing and improved wages. National Institute of Fashion Technology and leading members of the fashion industry have been roped in for design support to weavers. At the same time equipment and raw material for producing clothes for the high end customers and niche market are also being provided. Higher wage coming from high value production and reducing level of transactions in marketing would enhance the wage of the handloom weavers substantially.
In order to provide better marketing reach, the Ministry has launched an E-commerce initiative Flipkart. This will strengthen the existing Primary Weaver Cooperative Society by assisting entrepreneur from the weavers families for taking up production and supply directly to the customers. Proposed Trade Facilitation Centre and a Craft Museum will also provide much needed visibility to handloom products. Lakme fashion week this year dedicated a day showcasing the vibrancy and magic of Indian weavers and crafts.
Synergy of handloom, handicraft with tourism has been worked out in consultation with Ministry of Tourism. State Chief Secretaries have been requested for identifying traditional handloom weavers/handicraft artisans villages for development as “Adarsh Gram” as tourists destination.
Development of Tassar handloom products like sarees, dress material and wide range of home furnishing fabric for exports typical to Bhagalpur in Bihar has been initiated under Handloom Mega Cluster Scheme. Another mega cluster is being developed at Trichy, Tamilnadu. Over 15,000 handloom weavers will be directly benefited under each these two clusters. The remaining new megaclusters at Surat, Bareilly, Lucknow, Kutch and Mysore announced in the Budget Speech are at various stages of implementation.
Promotion of major crafts of Varanasi namely wood carving, carpet and durry weaving, meenakari and zardozi and pottery etc. have been taken up by providing assistance to the artisans with better skill, design and supply of toolkits etc. This was formally launched by the Textiles Minister on 26.9.2014. A Skill Development Programme for training 5000 carpet weavers has been taken up through the Carpet Export Promotion Council (CEPC). An Integrated Design Project of 5 months duration for wooden toys would be organized by National Centre for Design and Product Development (NCDPD). Electric wheels were given to potters under the Design and Technological Upgradation Scheme of Handicrafts in Delhi and later at Bareilly.
Silk and Pashmina
India is the 2nd largest producer of Silk in the world and employs large number of skilled and unskilled tribal women. During his recent visit to Jammu & Kashmir the Hon’ble Prime minister declared a scheme for the development of nomads.
Provision of Rs. 30 crore for same was made in the 2014-15 Budget, which would be utilized for
· Promotion of Pashmina in Leh, ladakh region of Jammu and Kashmir
· Setting up a dehairing plant in Ladakh to increase productivity
· Setting up Solar Powered Community Centers, Sheds for animals and Pucca shelters for nomads.
Recognizing their contribution and efforts the Textiles Minister felicitated 54 women engaged in sericulture.
With a vision to encourage and train the youth of Jammu and Kashmir for fashion design and thereby generate employment opportunities the Government has increased its Financial Support for setting up NIFT center from 50% to 90%.