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Increase in Textile sector exports

  • IAS NEXT, Lucknow
  • 14, Jan 2022
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Reference News:-  Textile sector exports increase by 41% in April- December 2021 as compared to last year.

Background: Textile sector has continuously maintained trade surplus with exports manifold higher than imports. 

  • FY 2020-21: Deceleration in textile exports due to pandemic disrupting the supply chain and demand.
  • 2021-22: US$ 29.8 billion as compared to US$ 21.2 billion for the same period last year. This implies robust growth of approximately 41% over last year. Growth signals an economic rebound.

Significance of the Textiles Sector

  • It contributes 2.3% to Indian GDP, 7% of Industrial Output, 12% to the export earnings of India and employs more than 21% of total employment (second to agriculture).
  • India is the 6th largest producer of Technical Textiles with 6% Global Share, largest producer of cotton & jute in the world.
    • Technical textiles are functional fabrics that have applications in industries such as automobiles, civil engineering and construction, 
  • India is also the second largest producer of silk in the world and 95% of the world’s hand woven fabric comes from India.

What are Major Initiatives by India in textile sector?

  • Amended Technology Upgradation Fund Scheme (ATUFS): For technology upgradation of the textiles industry (2015)
  • Scheme for Integrated Textile Parks (SITP): To assist small and medium entrepreneurs in the textile industry to clusterize investments in textile parks by providing financial support for world class infrastructure in the parks.
  • SAMARTH (Scheme For Capacity Building In Textile Sector): To address the shortage of skilled workers. 
  • North East Region Textile Promotion Scheme (NERTPS): This is a scheme for promoting textiles industry in the NER by providing infrastructure, capacity building and marketing support to all segments of the textile industry.
  • Power-Tex India: It comprises new research and development in power loom textiles, new markets, branding, subsidies and welfare schemes for the workers.
  • Silk Samagra Scheme: It focuses on improving the quality and productivity of domestic silk thereby reducing the country’s dependence on imported silk.
  • Jute ICARE: This pilot project launched in 2015 is aimed at addressing the difficulties faced by the jute cultivators by providing them certified seeds at subsidized rates, and by popularizing several newly developed retting technologies under water limiting conditions.
  • National Technical Textile Mission: It aims to position the country as a global leader in technical textiles and increase the use of technical textiles in the domestic market. It aims to take the domestic market size to USD 40 billion to USD 50 billion by 2024.
  • PLI plan for India’s textile sector: To help India regain its historical dominant status in global textiles trade, Government has approved a Rs. 10,683 crore Production Linked Incentive (PLI) scheme for the textile sector.
  • PM MITRA Parks: Government has approved setting up of 7 Mega Integrated Textile Region and Apparel (PM MITRA) Parks with a total outlay of Rs. 4,445 crore in a period of 5 years. ‘5F’ Formula encompasses – Farm to fibre; fibre to factory; factory to fashion; fashion to foreign