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Will mega textile parks help boost the sector?

GS Paper 3

 Syllabus: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment

 

Source: TH

 Context: The central government announced that 7 mega textile parks would be set up under the ₹4,445-crore PM Mega Integrated Textile Regions and Apparel (PM MITRA) scheme in the first phase.

Textile and Apparel Sector in India:

BackgroundPM MITRASignificance of PM MITRA
Challenges:

●       The MSME sector controls ~80% of the textiles and apparel currently made in India

●       Indian textile products and export (~65%) are cotton-based

●       Exports have stagnated at around the $40-billion mark (target – $100 billion by 2030)

●       Price competitiveness

●       Sustainability

 

Govt. schemes to support the development of common infrastructure:

●       Apparel Park Scheme (2002)

●       Scheme for Integrated Textile Parks (2005)

●       Launched by the Ministry of Textiles in 2021 to streamline the textile value chain (by setting up mega textile parks) into one ecosystem, taking in spinning, weaving and dyeing to printing and garment manufacturing.

●       The parks will be established in two stages – The selection of Sites, Development of the Park.

●       Proposals to set up such parks are prepared by the State Governments.

●       States must have contiguous parcels of a minimum of 1000 acres → transfer land to the Special Purpose Vehicle (SPV with 51% equity shareholding of the State and 49% of Central Government).

●       A unique initiative with differentiating factors

○       Large-scale production, provision of plug-and-play manufacturing centres, joint implementation Central-State governments, located in States that have inherent strengths, etc.

○       Each park will have effluent treatment plants, skill training centres, etc.

●       Enable scale of operations

●       Reduce logistics costs by housing the entire value chain at one location

●       Attracting investment worth ₹70,000 crore

●       Generating employment (~20 lakh) and augmenting export potential.

●       Leverage the PPP model.

●       In line with the 5F vision Farm to Fibre to Factory to Fashion to Foreign

 

Way ahead:

  • Expanding the fibre and product line from the current 5%.
  • Taking a cue from countries such as Turkey where integrated textile parks are highly efficient.
  • Encouraging MSME units to invest in the PM MITRA parks and scale up. The government can combine PLI scheme II with PM MITRA to support the MSME players.
  • Giving thrust to the PM MITRA parks for sustainable and cost-effective solutions for pollution control.

 

Insta Links:

PM MITRA scheme