While the National Textile Policy is yet to reach its final conclusion, various Indian states have announced policies to boost their respective textile sectors. In May, the Textiles Minister in a written reply to a question put up in the Rajya Sabha said, “The expert committee has since submitted a draft vision, strategy and action plan. The new National Textiles Policy is currently under finalisation.” The much awaited new policy aims to achieve $300 billion textiles exports by 2024-25 and expects to create 35 million jobs.
On the other hand, the state governments did their bit to support the segment by announcing policies. Andhra Pradesh, for instance, announced capital subsidy on the investment to the extent of Rs 10 crores to standalone garmenting and apparel units, financial assistance of up to 50 per cent of expenditure on common facilities in the case of textiles/apparel parks are among the other facilities. And for the employees working in these units, the government has announced extended training fee and the transport subsidies. It would provide a host of other incentives including 12.5 per cent interest subsidy and a power subsidy of Rs 1 per unit for spinning and Rs 1.50 per unit for ginning units. Refund of VAT on purchase of intermediate products and reimbursement of tax to the extent of 100 per cent of the eligible fixed capital investment in plant and machinery for a period of five years are also provisions provided for in the policy.
In May 2015, West Bengal Chief Minister, Mamata Banerjee also announced state’s plans to invest over Rs 26,000 crores to develop MSME and textiles sectors. A separate textiles policy of the state is also shaping up to encourage joint ventures and PPP model of garment factories to create employment opportunities for six lakh people in the state. Also, Karnataka government tweaked its Javali Neethi (Textile Policy) 2013-18 to strengthen textile value chain activities in October this year. Since Karnataka is very strong in garmenting; the policy centres on the dual approach of development, i.e. strengthening of existing value chain activities and filling the gaps in creating the facilities for value chain activities. The aim is to attract Rs 8,000 crores investment by 2018 and create four lakh employment opportunities in the state.
And the new Minister of Industries in Maharashtra, Subhash Desai announced plans to introduce a new textiles policy to boost the sector. Even the Government of Tamil Nadu, at a Global Investor’s conference in September this year, announced that the state would soon announce a new textiles policy, making the already successful industry a top destination for investment.
Texmin.nic.in
