Industry And Cluster | News & Insights

Emphasis on cutting-edge textiles, Plan to increase output; exports should include MSMEs as well

Published: September 14, 2021
Author: Manali bhanushali
The Centre’s initiative to enhance local manufacturing of in-demand man-made fibres, clothing, and technological textiles is being viewed as a mixed bag. Over the next five years, incentives totaling Rs 10,683 crore will be provided, with the goal of creating 7.5 lakh jobs with private investment worth Rs 19,000 crore. It is unquestionably helpful for corporations and large-scale companies, and it is intended to contribute to economies of scale, but it does not provide much to micro, small, and medium enterprises, which are at the heart of textile clusters in several states, including Ludhiana in Punjab.
Man-made fibres, such as viscose, polyester and acrylic, are made from chemicals. Technical textiles are used for the production of personal protective equipment, airbags, bulletproof vests, and in the aviation, defence and infrastructure sectors. Two-thirds of the international trade today is of synthetic and specialty textiles. However, man-made fibre apparel accounts for only a fifth of India’s overall exports.
The budgetary outlay may prove to be inadequate as the scheme gathers steam, but the intended positives are many. The success depends on simplified procedures to claim benefits and having an open outlook on roping in smaller units. The realignment of the export strategy seeks to make Indian companies more competitive after ceding ground to countries such as Bangladesh and Vietnam.

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