The Union Minister of Textiles recently disclosed details about the implementation of the Scheme for Integrated Textile Park (SITP) before the Rajya Sabha. Launched in 2005, SITP aims to provide the textile industry with high-quality infrastructure facilities and attract foreign investments in the domestic textile sector.
Scheme for Integrated Textile Parks: Key Features
The SITP’s primary feature is the development of infrastructure facilities for setting up textile units through a Public-Private-Partnership (PPP) model. The Indian Government provides funding for up to 40% of the project cost, with specific regions including North Eastern States, Himachal Pradesh, Uttarakhand and Union Territories of Jammu & Kashmir and Ladakh receiving up to 90% funding for the first two projects. However, support is capped at Rs. 40 crores for each textile park. Each Integrated Textile Park (ITP) under the scheme typically hosts 50 units, although the numbers may vary.
Status of Textile Parks Under SITP
As of now, 59 textile parks have been sanctioned under the SITP by the Textiles Ministry. Out of these, 22 have been completed. The proposal to establish Mega Textile Parks is currently under advanced discussion stages, with plans to set up 1,000-acre mega textile parks. The slow progress of SITP is attributed to factors such as delay in land acquisition, slow fund mobilisation and issues with obtaining clearances from state governments.
The Importance of the Textile Sector
The Indian textile sector contributes significantly to the country’s economy, accounting for 7% of its manufacturing output, 2% of GDP, 12% of exports, and employment of around 10 crore people both directly and indirectly. India is recognised as the largest producer of cotton, the second-largest producer of textiles and garments and man-made fibres including polyester and viscose after China. The sector currently stands at a size of $13 billion, demonstrating growth trends with a compounded annual growth rate (CAGR) of 8%.
Challenges Faced by the Textile Sector
Despite its massive potential, the textile sector faces challenges including fragmentation, dominance by the unorganised sector, increased costs due to GST, rising interest rates, labour wages, and worker salaries. The sector also faces competition from countries like China, Bangladesh, and Sri Lanka in low-cost garment markets. Social issues such as child labour and personal safety also pose considerable challenges.
Government Efforts Towards the Development of the Textile Sector
The Government has launched various initiatives aimed at boosting the textile sector. These include the Comprehensive Scheme for Development of Knitting and Knitwear Sector, North East Region Textile Promotion Scheme (NERTPS), SAMARTH (Scheme for Capacity Building in Textile Sector), Power-Tex India Silk Samagra Scheme, Amended Technology Upgradation Fund Scheme (ATUFS), National Handloom Day, Jute ICARE and National Technical Textile Mission.
Steps Towards Enhancing the Textile Sector’s Efficiency
India can enhance the sector’s efficiency by setting up mega apparel parks and common infrastructure, facilitating modernisation of obsolete machinery, and focusing on technology enhancement. These steps would not only improve production and productivity but also significantly increase exports.
