The domestic textiles sector has attracted investments worth Rs1,800 cr approximately in response to the production-linked incentives (PLI) scheme. In the last two months alone, the sector received around Rs 275 cr of investment, official sources told.
On September 24, 2021, the government notified the PLI scheme for a few textile products, namely manmade fabric (MMF) apparels, MMF fabrics, and products of technical textiles. The objective was to enhance the country’s manufacturing capabilities and improve exports with an approved financial outlay of Rs10,683 cr over a five-year period. To further boost the growth of the sector, Centre also removed the import duty on cotton.
The government has already approved the setting up of seven PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks to develop world-class infrastructure, including the plug-and-play facility with an outlay of Rs 4,445 cr till 2027-28. The guidelines in respect of the scheme have been published and there have been multiple interactions with state governments for inviting proposals.
In response, 18 proposals from 13 States have been received. The government also notified uniform goods and services tax (GST) rate at 12 percent on MMF fabrics, MMF yarns and apparel, which came into effect from January 1, 2022. The Indian textile and apparel industry is expected to grow at 10 percent CAGR from 2019-20 to reach $190 bn by 2025-26. India has a four percent share of the global trade in textiles and apparel.
The technical textiles market for automotive textiles is projected to increase to $3.7 bn by 2027, from $2.4 bn in 2020. Similarly, the industrial textiles market is likely to increase at an eight percent CAGR from $2 bn in 2020 to $3.3 bn in 2027. The overall Indian textiles market is expected to be worth more than $209 bn by 2029, according to a government website.
