Union Cabinet on Wednesday has approved the much-awaited scheme to set up mega investment textile parks (MITRA) in India, sources said. The textile ministry will build seven on over acres in the next three years. This move will help to attract foreign direct investments (FDI) into the textile sector and generate thousand of employments.
This will create world class infrastructure with plug and play facilities to enable create global champions in exports, Union finance minister Nirmala Sitharaman announced during Budget.
Unveiled in Budget 2021, the mega textile parks will have integrated facilities and quick turnaround time for minimising transportation losses. It will also help to position India as a fully in integrated, globally competitive manufacturing and exporting hub for the textile sector, the Union government said earlier.
“MITRA will be a game changer for the Indian textiles industry. Along with the Production Linked Incentive (PLI) scheme, MITRA will lead to increased investments and enhanced employment opportunities,” said Union minister for women & child development Smriti Z Irani.
The government is likely to invite expression of interest from states within next one month to start the process. Gujarat, Tamil Nadu and Maharashtra have shown interest in setting up textile parks, according to sources.
Union commerce and textiles minister Piyush Goyal earlier said that the sector will achieve $44 billion exports target in 2021-22. The industry aims for $100 billion outbound shipments in the next five years, Goyal added. “Delighted at the way the textiles sector has engaged with the idea of achieving bigger targets. We must aim for a $100 billion export target in the next five years,” he said.
These mega mega investment textile parks would play a crucial to attract foreign direct investment (FDI), experts believed.
Union Cabinet earlier approved a Rs 10,683-crore production-linked incentive (PLI) scheme for man-made fibre segment (MMF) apparel, MMF fabrics and ten products of technical textiles for five years. This scheme was expected boost domestic manufacturing and exports.
The scheme aimed to attract fresh investment of Rs 19,000 crore in the sector for production of in-demand textiles, and additional turnover of Rs 3 lakh crore over five years. This was part of a larger PLI scheme for 13 sectors, with a total budgetary outlay of 1.97 lakh crore.
The scheme would directly benefit the states of Gujarat, Uttar Pradesh, Maharashtra, Punjab, Tamil Nadu, Andhra Pradesh, Telangana and Odisha, as these were states where the textile sector is already growing, Union commerce and textiles minister Piyush Goyal said while unveiling the scheme last month.
The Indian textile sector is the sixth-largest exporter of textiles and apparels in the world.