The Indian textile industry has been calling for government help and appears to have got its wish. The government ministry for textiles has altered the Technology Upgradation Fund Scheme (TUFS), so it will now be effective for the duration of the Eleventh Five Year plan (2007-12). It will particularly focus on the added-value areas such as garment making, technical textiles and processing segments as well as looking to boost employment. It is hoped this will help the sector achieve its 16% growth rate target.

Under the scheme there will be an upfront capital subsidy of 10% as well as a 5% interest reimbursement across most textile and apparel sectors.

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