Textile Sector – second largest employer after agriculture,accounts 2% of the GDP

The textile sector, which is second largest employer after agriculture and accounts for 2% of the GDP, is a powerful means of inclusive growth in the country.  Its vision is to develop this sector into a modern, vibrant and internationally competitive sector generating income and employment for millions.  The major thrust of the Ministry has been ensuring increased investment in world class infrastructure, technology upgradation, HRD initiatives like skill development programmes, design development and marketing support leading to the welfare of artisans and weavers.

Industry Sector
The Schemes formulated to give a boost to technology upgradation and better infrastructure in the textile sector continued to achieve and in many cases overshot the target sets in the past years.  The Technology Upgradation Fund Scheme (TUFS), devised to encourage investment in textile units in technology upgradation by availing bank credits for subsidising a part of interest cost, has propelled investment of more than Rs. 2,11,000 crores of which an amount of Rs. 15277.17 crore has been released on June 30, 2011.

To ensure focus on interventions on the hitherto slow growing sectors like weaving, encouragement to forward integration and tighter administrative controls and monitoring, the scheme was restructured.  The restructured TUFS was implemented from April 28, 2011 with an enhanced 11th Plan allocation from Rs. 8000 crores to Rs. 15404 crores. The restructured TUFS is expected to trigger additional investments of over Rs. 46,900 crores during the balance period of the 11th Five Year Plan.

Strategic intervention by way of providing world class infrastructure support in industrial clusters of high growth potential continued under the  Scheme of Integrated Textile Parks (SITP). The Parks are an extremely successful model of a Public Private Partnership where Government investment of Rs 1420 crores in 40 Parks will create a multiplier effect, generating private investment of Rs 19500 crore and create employment for about 8 lakh persons.

Commercial production has commenced in 24 out of 40 parks sanctioned till date with an amount of Rs. 992.16 crore having been released so far. Taking into consideration the scale of private investment the Scheme has been able to leverage, the Cabinet Committee on Economic Affairs agreed to take forward the success story of the SITP by approving the setting up of more parks with an outlay of Rs. 200 crores in the current plan and with permission to carry forward liability of Rs. 200 crores for these parks into the 12th Plan.

The Ministry continued  the emphasis on clusterisation and aggregation with the approval of setting up of 12 Megaclusters. Of these, 4 are handloom megaclusters at Varanasi, Sibsagar, Mushidabad and Virudhnagar; 5 are handicrafts megaclusters at Moradabad, Narsapur, Bhadhoi-Mirzapur, Srinagar and Jodhpur and 3 are powerloom megaclusters at Bhiwandi, Erode and Bhilwara.

The scheme provides for development of all facets of selected clusters like raw material support, design inputs, upgradation of technology, infrastructure development, marketing support and welfare of artisans and weavers.   An amount of Rs. 87.71 crores has been released till date for the development of these megaclusters.

No sector can grow unless the skills of the existing manpower are upgraded and new trained manpower is available. The Textiles Ministry has launched an ambitious Integrated Skill Development Scheme in July, 2011 with the budget of Rs. 272 crores.

The Scheme will address trained manpower needs of the textiles and related segments like Handicrafts, Handlooms, Sericulture, Jute, Technical Textiles etc., by developing a cohesive and integrated framework of training based on industry needs.  A total grant of Rs. 246.44 crores has been approved to provide training to 3.4 lakh persons.

Technical Textiles -The Sunrise Sector
Technical textiles, the textiles of the future, are critical for the thrust areas of the Government like infrastructure development, security of the nation, food security and social responsibility.   Several initiatives have been taken up by the Ministry to give an impetus to the growth of this sector like Scheme for Growth and Development of Technical Textiles (SGDTT), inclusion of major machinery for technical textiles under the modified TUFS for 10% capital subsidy.

To tackle the major problems inhibiting the growth of this sector like lack of basic infrastructure in terms of testing facilities, market development support, skilled manpower, R&D, absence of regulatory measures and absence of specifications and standards for technical textiles, a Technology Mission on Technical Textiles (TMTT) with two Mini Missions spread over 5 years and an outlay of Rs.200 crores was launched by the Ministry.

Four Centres of Excellence (CoEs) have been   set up for standardisation, creating common testing facilities with national/international accreditations, indigenous development of prototypes and resource centres, supporting domestic and export market development of technical textiles through various Government interventions like support of business start ups, fund support for organising national, international conferences etc.

Jute Industry
Jute industry is an important part of the Ministry.  The only Public Sector Undertaking in the jute sector, the National Jute Manufacturers Corporation (NJMC) is to be revived for which revival package of Rs.1562.98 crores has been approved.  A Modernisation Committee has been constituted by the Ministry to start  revival process of those mills where production was stopped 7 to 8 years ago.  This will induct new life into the jute sector.

National Textiles Corporation
In the organised textiles sector, the National Textiles Corporation (NTC), a PSU under the Ministry consolidate its performance in 2010-11 in 18 modernised mills.  Cash profit was generated in 14 of the modernised mills during the year.  Trial production has begun in 3 composite units in Hassan SEZ area, Achalpur in the backward Vidharba region and at Ahmedabad.  NTC has obtained ISO certification respect of 11 mills.  With improved quality, NTC has been able to export yarn/fabric to the tune of Rs. 1698 crores during the year.  NTC evolved an e-auction technique for the sale of its land through which it fetched record returns of Rs. 1979 crores.

The warp and weft of the handlooms continued to weave their  colourful story  and enjoyed widespread appreciation in different events/exhibitions organised during the year.  One such event was a two day cultural festival fittingly called “TANA BANA” organised at the Lal Bahadur Shastri National Academy of Administration at Mussoorie in July, 2011 to give exposure to the young probationers about the rich heritage of Indian Crafts and Weaves.  A panel discussion on “Handlooms and Handicrafts in 21st Century” with   eminent experts drawn from public and private sector was held in the presence of probationers to discuss the need and importance of conserving and preserving our traditional heritage and the contribution of such products in the national economy.    The highlight of the event was a fashion show which showcased the rich heritage of Indian handlooms and handicrafts with exclusive fabrics, designs and product range sourced from the clusters of all over the country.

The experiment of clusterisation and agglomeration continued its successful run.  Sales worth Rs. 2941 lakh were generated through 375 exhibitions and 86 Buyer Seller Meets (BSM) of the products of Pilot Clusters, Rs. 3640 lakh through Cottage Emporium, Rs. 102.90 lakh through Handloom House and Rs. 3642.93 lakh from other buyers.  More than 3300 new designs were developed generating sales worth Rs. 339.27 lakh.

New product catalogue was developed by 20 clusters and 16 clusters have prepared a documentary film on cluster interventions.  A total of 2276 Self Help Groups (SHGs) have been formed covering around 28532 weavers in 20 clusters.  Bank accounts have been opened by more than 2000 SHGs.  Several clusters like Chanderi, Varanasi, Sonpur, Bijnaur, Bhagalpur and Bardhwan have formed Producer Company Limited and have been registered under Producers’ Company Act.

Improvement in dyeing processes was achieved by organising of 201 dyers’ workshops with the participation of 2947 dyers.  Common Facility Centres (CFCs) is operational in 11 clusters and 18 dye houses are functional.To provide a marketing platform to the handloom weavers 680 marketing events were organised with an expected sales of Rs 350 crore.

Several initiatives have been taken up for the welfare of the handloom weavers. To ensure that weavers can avail of benefits of various schemes, photo identity cards have been issued to 16.68 lakh weavers after a National Handloom Census was conducted.  A Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) has been  set up.

More than 58 lakh weavers have benefitted under the Integrated Handloom Development Scheme where they have been provided upgraded/new looms, infrastructure support and skill upgradation training. A new Indian Institute of handloom technology at Kannur in kerela has been approver in 2010-11. Health and life insurance coverage has been provided to the weavers and ancillary workers under the Handloom Weavers’ Comprehensive Welfare Scheme. A financial package of Rs 3000 crore has been announced in the Budget of 2011-12 for waiver of loans and interest. This is likely to benefit about 3 lakh weavers in the country.

The success story of the handicrafts sector is equally engaging.  To facilitate a marketing platform to the artisans, 371 marketing events were organised in 2010-11 resulting in a turnover of  Rs. 135 crores.  In order to promote artisans of Jammu and Kashmir, a special theme show was organised at Shilpi Haat, New Delhi where approximately 50 artisans participated.  The Handicrafts Sector too has experimented successfully with clusterisation.  Around 140 new clusters were adopted for development, pan India, in 2010-11 and an equal number in 2011-12 which will benefit around 50000 artisans.

Design Development & Marketing
Understanding the need to create new designs to cater to new markets and new trends, the Ministry of Textiles has played a major role in ensuring that expertise is available to weavers in clusters, Weavers’ Service Centres, availability of free designs in 11 languages on the website. Equal emphasis has been given to providing marketing platform for products of our artisans and weavers by way of exhibitions, crafts bazaars, shilp bazaars, sourcing shows and thematic fairs and festivals for marketing handloom and handicraft products directly by the weavers and artisans.

To provide for a sourcing show of all textile products, the Ministry of Textiles organised Tex-Trends India 2011 in February, 2011.  The Fair emerged as one of Asia’s largest sourcing textile shows with 734 exhibitors and participation of around 2500 buyers and buying agents.  The Fair had a focussed theme pavilion, Seminar on India Sourcing-A Buyers Perspective.  Business worth of Rs.836 crores was negotiated during the fair.  The success of the show has resulted in Tex Trends becoming an annual event and a prominent fixture on the trade calendars all over the world.  Shri Pranab Mukherjee, Union Minister of Finance, inaugurated the show.

Knitwear Technology Mission
Knitwear Technology MissionA Knitwear technology Mission has been established at Tirupur at a cost of Rs 5 crore for enhancing capacity and expertise in knitwear.

Common Compliance Code
Understanding that better compliance of social,environmental and safety related issues can give Inda the required edge over its competitors in the global markets,a Common Compliance Scheme has been formulated. The Scheme ,to be implemented by AEPC, is based on ILO guidelines and aims at streamlining the plethora of audits and compliance programmes running in India.The Rs 805 crore project will impart capacity building and training to 400 small and medium apparel exporting units in the first year to be replicated in subsequent years.

Focus On North East
Complying with the Government focus on the North Eastern region the Ministry has earmarked 10% of its annual plan outlay for Schemes in that region with more than 20% of the outlays of the VSE sector for Schemes in the North East.  In pursuance of giving emphasis to programmes in the North East and making the Schemes more effective in that region a Seminar-cum-Workshop on “Schemes of the Ministry of Textiles and their impact on North Eastern region”, an exhibition of handicrafts and artistic textiles and a fashion show showcasing the rich handlooms of North East was organised by DC (HL)/DC (HC) through NEHHDC in Shillong, Meghalaya on May 25, 2011.

(PIB Features)

*Inputs from the Ministry of Textiles



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