Business & Policy | News & Insights | Textile Industry

UP Govt. to Set Up Textile Parks to Boost Local Production, Reduce China Dependency

Published: November 20, 2024
Author: TANVI_MUNJAL

In a significant move to bolster the state’s textile industry and reduce reliance on raw material imports from China, the Uttar Pradesh government is gearing up to establish nearly a dozen private textile parks across the state. These parks will be set up under the UP Textile and Garmenting Policy 2022.

The first of these parks, Lonex Textile Park in Shamli district, is set to be operational by December 2025 with an investment of Rs 726 crore. Spread across 27 acres, the park will create 5,000 direct and indirect jobs and house 17 production units for weaving, dyeing, printing, and garmenting.

Other districts slated for textile park development include Gorakhpur, Mau, Bhadohi, Aligarh, Baghpat, and Shamli.

Capitalising on Industry Growth and Global Disruptions

The move comes at a time when India’s textile industry is poised for significant growth. The industry is expected to grow at a compound annual growth rate (CAGR) of 8.9% during 2023-2032, with the domestic textile and apparel market projected to reach $350 billion by 2030.

Uttar Pradesh, with its rich textile heritage and existing hubs in Varanasi, Lucknow, Bhadohi, Gorakhpur, and Kanpur, is strategically positioned to capitalise on this growth. The state government aims to leverage recent disruptions in the global textile sector, particularly in Bangladesh, to further strengthen its position as a textile and garment hub in South Asia.

Government Initiatives and Industry Partnerships

To realise this vision, the Yogi Adityanath government is actively promoting the textile sector through various policy interventions. In addition to the private textile parks, the state is also participating in the central government’s PM Mega Integrated Textiles and Apparel (PM Mitra) scheme.

A mega textile park spanning 1,162 acres in Lucknow and Hardoi districts is under development, attracting investments of around Rs 10,000 crore and creating 300,000 jobs. Leading textile companies like Reliance Industries, Arvind Mills, Vardhman, and Ahuja Textile Mills are expected to establish units within this park.

By fostering a conducive environment for textile manufacturing and processing, the Uttar Pradesh government aims to not only reduce reliance on imports but also create significant employment opportunities and contribute to the state’s economic growth.

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