India has released Rs. 6,717.18 crore under the Amended Technology Upgradation Fund Scheme (ATUFS) between fiscals 2015-16 and 2019-20, textiles minister Smriti Irani informed parliament upper house recently. “A total of 9,641 applications, covering employment of 2.86 lakh persons and investment of Rs. 40,026.5 crore submitted by textile units, have been issued till January 2020,” she said.
ATUFS, implemented with effect from January 13, 2016, has a provision to meet the committed liabilities of its previous scheme versions in addition to the new sanctions.
Irani said the Indian textile sector faces competition from Bangladesh and Vietnam, which enjoy duty free access to key markets like the European Union, while India’s exports face a duty disadvantage, according to Indian media reports.
Besides, Bangladesh and Vietnam have the benefit of economies of scale in textile manufacturing and a large and productive labour force, she added.