Indian textile industry thrives with government support
It reveals that the textile industry has generated a considerable number of new jobs and has boosted export figures. Basic customs duty on various textile machinery and spare parts has been reduced, an additional capital subsidy for processing has been provided, duties on specified textile machinery items, raw materials and spare parts has been lowered, and excise duty on polyester filament yarn has been reduced.
The scope of schemes such as the Technology Upgradation Fund Scheme and the Technology Mission on Cotton has been augmented to help with modernisation and to ensure the availability of quality raw material at competitive prices. The Scheme for Integrated Textiles Parks has been launched to strengthen infrastructure and has proposed the construction of 30 integrated textiles parks by 2008, with an investment of over Rs13,000 crore ($3.2 billion). These parks should generate annual production of over Rs20,000 crore, as well as creating over half a million new jobs.
It is expected that by 2011/12 the textiles sector will have more than doubled to $115 billion. The estimated investment during this period will be approximately Rs1,50,000 crore, generating employment for approximately 17 million workers.
Weavers have also been helped through an increase in the number of cluster development centres and yarn depots, technology upgrades, health and life insurance cover and a new ‘Handloom Mark’ for branding handloom products.
A National Jute Policy has also been introduced for the first time to boost demand for jute and to protect the interests of jute growers. Steps are being taken to implement a Jute Technology Mission to develop the jute sector at an estimated cost of Rs355 crore. The National Jute Board Bill was introduced in 2006 to help improve the situation of the jute sector.
