Industry And Cluster | News & Insights


Published: July 5, 2019


Budget Highlights for Textiles

  • Decrease in Budget allocation for Textiles from Rs 6943.26 crores (Revised 2018-19) to Rs 4831.48 crores (Budget 2019-2020)
  • Total Textile Infrastructure like SITP reduces from Rs 3729.83 crores to Rs 58.55 crores
  • Reduction in custom duty from 5% to 2.5% on imports of raw material under 5101 & 5105 (Wool fibre & Wool tops).
  • Increase in custom duty from 0 to 20% for HS code 56039400 (Water blocking tapes for manufacture of optical fiber cables)
  • Plus no allocation for pending ROSL – scheme closed but some payments are due

Some benefits for Textile Industry:

  • The formation of National Research Foundation
  • 2% interest subvention for MSME
  • Labour law simplification
  • Power distribution restructuring proposed
  • Corporate tax reduction to MSMEs upto Rs 400 crore
  • There has been an increase in allocation for development of handloom, handicraft, wool, silk, jute and powerloom sector
  • Also allocation has increased for skilling in Textiles

1. Secretariat:..Provides for the secretariat expenditure of the Ministry.

2. Textile Commissioner:..Textile Commissioner implements the regulatory orders, administers Powerloom Service Centres, monitors the implementation of important schemes like Amended NHDC. Technology Upgradation Fund Scheme (ATUFS) and Technology Mission on Cotton (TMC), maintains database for textiles etc.

3. Jute Commissioner:..Jute Commissioner looks after the development of Jute Industry in India and also administers the Jute Textile (Control) Order,1956 and the Jute (Licensing and Control) Order,1961, which have now been amalgamated and is known as Jute and Jute Textile (Control) Order, 2000.

4. Amended Technology Upgradation Fund Scheme(ATUFS):..The Scheme provides for Amended Technology Upgradation of the Textiles Industry with one time capital subsidy for eligible machinery.

5. Procurement of Cotton by Cotton Corporation under Price Support Scheme:..The Cotton Corporation of India (CCI) is mandated to undertake Support Price Operation. Whenever the market price of Kappas falls below/touches the minimum support price (MSP), the CCI is to undertake Support Price Operation and purchase Kappas at MSP. The loss, if any, incurred on account of Support Price Operation is reimbursed to CCI by the Government.

6. National Handloom Development Programme:..The schemes consisting National Handloom Development Programme, Handloom Weavers Comprehensive Welfare Scheme, Yarn Supply Scheme, Trade Facilitation Centre and Craft Museum, CHCDS – Handloom Mega Cluster, Weavers Service Centre and Others Handloom Programme.

7. Handloom Weaver Comprehensive Welfare Scheme (HWCWS):..i) To provide health insurance to handloom weavers (ii) to provide life insurance cover to handloom weavers.
of handlooms of Varanasi.

8. Yarn Supply Scheme:..To provide all types of yarn to handloom weavers through NHDC

9.Trade Facilitation Centre and Crafts Museum:..To develop and promote rich tradition  of handlooms of Varanasi.

10. Handloom Cluster Development Program – Handloom Mega Cluster:..To assist the entrepreneur/weavers to set up facilities with modern infrastructure, enhance the competitiveness of the clusters in terms of increased market share and ensuring increased productivity by higher unit value realization of the products. To meet the discerning and changing market demands both at domestic and at the international level and raise living standards of the weavers.

11. Weavers Service Centre:..To provide skill, upgradation, design and technological support to handloom weavers and liaison with State Governments.

12. Other Handloom Schemes:..The expenditure relates to establishment, office expenses, travel expenses and other Miscellaneous expenses relating to office of Development Commissioner (Handloom), Museum, Institute of Handloom Technology, Implementation of Handloom (Reservation) of Article of Production Act 1985 and Development Commissioner Handloom (Enforcement).

13. Training and Extension:..These are administrative expenditure which are to be met for closed departmental training centres.

14. Design and Technical Upgradation Scheme:..The scheme aims at upgradation of artisans skill through development of new design and supply of prototypes of improved/modern equipment to the craft persons, revival of rare crafts to preserve the Traditional Heritage.

15. Ambedkar Hasthshilp Vikas Yojana:..The scheme aims at promoting Indian handicrafts by developing artisans clusters into professionally managed and self reliant community enterprises on the principles of effective member participation and mutual cooperation.

16. Marketing Support and Services:..To develop, expand and sustain Marketing of Handicrafts with the objective of augmenting the employment and income of Crafts persons & to provide assistance to Council and Handicrafts Development Corporation For enhancement of Market share of Handicrafts in global markets,conducting Market research, workshops and seminar in India and abroad.

17. Handicrafts Artisans comprehensive welfare scheme:..The objective of the scheme is to provide life insurance protection to the Handicraft Artisans between the age group of 18-60 years.

18. Research and Development – Handicrafts:..To conduct studies for feedback on economic and social and aesthetic and promotional aspect of Handicrafts.

19. Human Resource Development- Handicrafts:..To provide training in special fields to staff working in O/o DC(H) and NGOs in Admn. IT, Financial Management and implementation of the projects.

20. Infrastructure and Technology Development Scheme:..The provision is for Infrastructure and Technology Development Scheme.

21. Development of other crafts in J and K:..To promote Handicrafts in Jammu and

22. Handicraft Cluster Development Program – Handicraft Mega Cluster:..To setup Handicrafts Mega Clusters.

23. Other Handicraft schemes:..The expenditure relates to establishment, office expenses, travel expenses and other Miscellaneous expenses relating office of DC (Handicraft), Indian Institute of Carpet Technology, Training & Extension, Marketing & Service Extension, Economic & Craft Research and Export Promotion.

24. Hast Kala Academy:..Building of Hastkala Academy in Delhi with necessary Infrastructure.

25. Integrated Wool Development Programme:..To provide support to Wool Industry and Wool Growers to qualitatively upgrade product and technology, providing wool processing facilities like scouring, carbonizing, carding, dying, spinning, knitting and to modernize existing machineries/plants, increase the production of Pashmina wool in Ladakh region, to provide remunerative returns to its wool growers and provide social security to wool growers and Administraive Expenses relating to Wool Development Board

26. Central Silk Board:..The Central Silk Board assists in the development of silk.

27. Silk Mega Cluster:..Setting up of Silk Mega Cluster.

28. Scheme for Development of Jute Sector:..The scheme provides for training/development, market promotion and development activities of National Jute Board. The expenses were earlier being met from payment against Jute Cess Collection.

29. Subsidy to Jute Corporation of India towards market operation:..To support JCI to conduct Minimum Support Price (MSP) operations.

30. Others (IJIRA, COP JC):..Administrative Expenses of Indian Jute Industries Research Association, Commissioner of payment of Jute Companies.

31. Power Tex India:..To modernize Powerloom sector, provide better technical service support to Powerloom industry/weavers, setting up new PSC, facilitation of marketing their products through buyer-seller meets, promoting awareness among the consumers about the latest designs, products and product diversification etc., establish Common Facility Center, yarn bank and Tex Venture Capital Fund in clusters and empower Powerloom industry. To facilitate the establishment of work sheds for modern looms in an existing or new cluster, which will provide required scale of economies for business operations.

35. Comprehensive Powerloom Cluster Development Program – Powerloom Mega Cluster:..This includes provision for setting up of Powerloom Mega Cluster.

36. Group Insurance Scheme:..To provide insurance cover to the Powerloom weavers in the case of natural death, accidental death as well as partial and permanent disability due to accident.

37. Integrated Processing Development Scheme:..To facilitate the textile industry to become globally competitive using environmentally friendly processing standards and technology.

38. Scheme for Integrated Textile Parks (SITP):..To facilitate development of world-class infrastructure for setting up of textile units.

39. Workers Hostel:..To promote availability of safe, adequate and conveniently located accommodation for textile and apparel industry workers in the form of workers hostels, within the proximity of areas of high concentration of textile or apparel industries.

40. Assistant to Textile Committee:..Its functions are promotion of exports, research in technical and economic fields, consultancy, establishing standards for textiles and textile machinery, setting up of laboratories, and data collection etc

41. Flatted Factory cum Incubators:..To create an integrated work space and linkages based entrepreneurial ecosystem for the start-ups.

42. Remission of State Levies (ROSL):..This scheme will provide a remittance of State Levies to garments exporters to make the garment industry more competitive in global market and also boosting Employment in this Sector.The Scheme has been discontinued w.e.f. 06.03.2019.

43. Pradhan Mantri Paridhan Rojgar Protsahan Yojna (PMPRPY):..Under this scheme, the Government would provide the Employee Pension Scheme contribution of 8.33% of the employers for all new employees enrolling in EPFO under PMRPY for the first three years of their employment. This will boost employment in Textile Sector by incentivizing the employers to recruit unemployed persons and also to bring into the books the informal employees.

44. Export Promotion Studies:..Encouraging Research Studies relating to steps and strategies for qualitative and quantitative important of textile exports.

45. Textile Labour Rehabilitation Scheme:..To provide interim relief to textiles workers rendered unemployed due to permanent closer of any particular portion or entire textile units.

46. Others (TRAs, COP):..To provide Grant-in-Aid towards recurring expenditure of Textiles Research Associations (TRAs) & Establishment of expenses of Commissioner of payments.

47. Integrated Scheme for Skill Development:..To train persons in Textiles and related sectors for skill development.

48. R and D Textiles:..To encourage research in the textiles and provide financial support to Textiles Research Associations (TRAs) Institutions etc.

49. National Institute of Fashion Technology (NIFT):..NIFT offers various full time degree/diploma and part-time certificate programme to develop professionals for Fashion Industry.

50. Technology Mission on Cotton:..To promote technology to Cotton Industries.

51. Technology Mission on Knitwear:..To promote technology to Knitwear Industries.

52. Technology Mission on Technical Textile:..To promote technology to technical Textiles Industries.

53. NER Textiles Promotion Scheme:..The objective of the North East Textile Promotion Scheme is to develop and modernize textile sector in the North East Region by providing the required Government support in terms of raw material seed banks, machinery, common facility centers, skill development, design and marketing support etc.

54. Scheme for Usage of Geotextiles in North East:..To utilize Geotextiles in development of the infrastructure of the NE States in general.

55. Scheme for Promoting Agro Textiles in North East:..To encourage utilization of Agrotextiles in improving the horticulture and floricultural produce of the NE states.

56. National Jute Manufacturers Corporation:..To carry on business of manufacturing of Jute Goods (Sacking) for supply to food processing agencies of the Government.

57. Bird Jute Export Corporation:..A processing unit of Jute Fabric.

58. British India Corporation Limited:..A BIFR referred Company under Ministry of Textiles.

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