The majority of the businesses in Tiruppur (76%) that invested under the ATUFS programme had invested less than 2 crores, according to K.M. Subramanian, president of the Tiruppur Exporters’ Association, in a message to Trade Advisor in the Union Ministry of Textiles Shubhra. So, in order for sectors to profit from the PLI 2.0 scheme, the government must set a minimum investment cap of 10 crores and a triple-that-amount turnover target. When the Amended TUF scheme expired on March 31, 2022, the exporting units had believed that a new TUF scheme would be implemented. On the basis of this anticipation, numerous units made investments. A new programme to help the modernization of the textile industry, however, has not been announced. A new TUF should be released by the government. scheme as soon as possible, he said.
Meetings on the PLI 2.0 were held with stakeholders by the Textiles Secretary, and it appears that the programme will help small and medium-sized businesses and producers of cotton-based goods. The Association had proposed a minimum investment threshold of 10 crores for knitwear businesses.
The Technological Upgradation Fund (TUF) scheme, according to Mr. Subramanian, was a significant role in the development of the Tiruppur garment cluster. Buyers from other countries have high standards for quality, therefore businesses must invest in technology to satisfy them. More crucially, he said, “constant machinery modernization is required to survive in the extremely competitive worldwide export market.”
