In 1985, a small town, Tiruppur in Tamil Nadu exported INR 15 crores worth of textile products. 

In 2021, Tiruppur exported around INR 30,000 crores worth of textile products, a staggering growth of almost 23% annually every year for the past 37 years.

 

This growth story is so astounding that Tiruppur now contributes over 50% of India’s textile exports.

 

 

Yet over the few years, India’s textile exports were seeing a fall. The government of India decided to do something drastic to bolster the diminishing textile exports.

 

It announced plans to set up 7 mega textile parks across the country. Think huge factories encapsulating the entire garment value chain — from spinning yarn, weaving, dyeing, printing, and manufacturing the final product. All in one place.

 

The government called it the Mega Integrated Textile Region and Apparel scheme (MITRA) and promised to set aside nearly Rs 4,445 crores to get this moving. It invited states to apply for the scheme. And it is now in the final stages of zeroing in on the first few beneficiaries.

 

With MITRA and to bolster the export growth, the government announced a Rs 10,683-crore production-linked incentive (PLI) scheme in September, aimed at increasing the production of man-made fibers such as polyester, and technical textiles used in making products such as sportswear, fishing nets, and surgical disposables. 

 

Under this scheme, the manufacturers can choose to invest either at least Rs 100 crore or at least Rs 300 crore and generate a turnover that is at least double their investment.

The product lines include 40 in man-made fiber apparel, 14 in man-made fiber fabrics, and 10 in technical textiles products.

 

Why is the government so keen on setting up mega parks for textiles? Why this PLI?

In the recently concluded GLOCAL Textile Summit 2022, in New Delhi, the officers from the Ministry of Textiles stated that textiles contribute about 2% of the country’s GDP and as an industry, it is the second largest employer right after agriculture and that growing the textile industry could help solve the employment problem plaguing the country to some extent.

 

 

A lot of speakers at the summit made it clear that India has lost its sheen when it comes to garment exports. 

 

So, these mega textile parks are envisioned as a way for India to regain its former glory.

But will it help?

 

To understand, we first need to understand what went wrong with India’s textile industry.

And there is no better way to do it than to compare ourselves with our neighbor, Bangladesh. See, over the past decade, countries like Bangladesh have raced ahead in garment manufacturing. And they have done this primarily due to a lower cost structure. Look at labor, for instance. A couple of years ago, a report showed that the average monthly wage for a worker in India’s garment factories stood at Rs10,000, while Bangladeshi workers only earned half that sum. This is an exploitative practice, but it also means that apparel companies would much rather ship textile products from Bangladesh as opposed to India.

 

As I said earlier, it is not just about the cost structure. We lack on the productivity front as well. Indian workers produce about 10 to 12 pieces of garments per shift, while workers in Bangladesh delivered nearly 20 pieces.

 

Another problem faced by Indian garment factories is the overhead. Power in India is almost 30–40% higher than that in Bangladesh. This also feeds into the final cost that garment manufacturers quote. 

 

Then we have the cost of freight. The vastness of India and its different growing regions eat into the profits. For instance, this is how the typical textile value chain in India works. 

 

You have cotton that is primarily grown in Gujarat and Maharashtra, which is then sent to Tamil Nadu. Here, the cotton is spun and shipped back to processing units in Rajasthan. And then the processed fabric makes its way to factories in NCR, Bengaluru, and Kolkata. And finally, export-ready products are packed and dispatched to the ports in Mumbai and Kandla. It’s like an India tour with cotton crisscrossing every part of the country. All this adds to the cost.

 

 

Probably one of the reasons for the government to put in mega textile parks is to bring in the entire value chain in one place and reduce factory overheads. The central government is also pushing the state governments to commit to a power tariff with rates locked in for at least 15 years helping manufacturers to plan operations better.

 

This government is also working with the EU and other countries to lower the trade tariffs. 

The UN has accorded Bangladesh the status of a Least Developed Country (LDC). This means they get preferential market access.

EU has accorded the status of Least Developed Country (LDC) to Bangladesh which apparel exported by Bangladesh duty-free to the European Union. On the other hand, Indian exporters face a tariff of nearly 10%. And we all can imagine how beneficial this is.

 

However, by 2026, Bangladesh is all set to graduate from its LDC status. It will be classified as a “developing country”. With that, it will lose its preferential access to the EU and probably even other regions. It will not have free access anymore.

 

The Indian government is already working hard to sign Free Trade Agreements (FTAs) with the EU, Australia, UK, Canada, and other countries to give our textile industry unfettered access to these markets. And maybe the economies of scale that these Mega Textiles Parks can bring will finally give a boost that the sector so badly needs.

 

Remember In 2005, India launched the Scheme for Integrated Textile Parks (SITP) to boost the textile sector. Today they have turned out to be deemed a spectacular failure as manufacturers saw no reason to shift to these parks.

These parks were situated outside the cities and towns, and getting the workforce there posed a formidable challenge. In addition, internationally such parks are spread over 150 acres and more. In India, only five sanctioned and approved parks are of this size. A majority of them are less than 75 acres,

We understand that so far, the decision about the locations has not been taken, but 10-12 states have shown interest as per the Ministry of Textiles. 

As per the report, the prerequisite this time is to identify a minimum of 1,000 acres of land. Several other factors would have to be considered such as the availability of raw material, power and adequate water, and labor laws and industrial policies of states.

On the other hand, the industry thinks that this time around, proper implementation of these parks is key. 

For making the textile industry a success, four things are required for success of textile parks—man, machine, raw material, and marketing.

But the industry has not heard anything from the government on addressing the labor issues which plague the industry. 

Coming to the PLI scheme, manufacturers are not convinced that PLI will be very beneficial. For two reasons. First, the scheme covers only man-made and technical textiles, whereas apparel constitutes about 73 percent of the total market. Even some key man-made textiles are not covered. Second, the scheme’s financial requirements are prohibitive.

Some of the targets are not suitable for the technical textile sector. Minimum Rs 100-crore investments, 25-60 percent value addition—these are not easy targets. This means unless the players get into new segments or start getting significant market share, such investments and turnovers are not possible.

The PLI scheme is for technical and man-made textiles only. The government understands that even though India primarily focuses on cotton textiles, man-made and technical textiles account for about two-thirds of global trade.

The manufacturers point out that many products made using these textiles— such as sportswear, knitted shirts, and woven tops—are not covered in the HSN codes in the scheme. An HSN (Harmonized System of Nomenclature) is a globally accepted six-digit code that classifies over 5,000 products. Most of the codes that India is in are not part of the scheme, hence a manufacturer cannot participate. And do not think India is going to get any benefit.

The scheme does not even look likely to boost the exports of technical textiles. The government has taken 40 HSN codes where the export is less than 5 percent and I believe the various associations have already submitted their feedback.

Upon close study, it comes out that the PLI is not directly going to benefit the MSMEs and particularly the garment apparel export companies as the benefits of these schemes are based on the capital invested and the minimum investment is more than Rs 100 crore. The apparel industry does not require such huge investments in plants and machinery. 

So, who are going to be the participants under the PLI scheme? 

To make it more friendly, a minimum investment level of around Rs 25 crore could have swayed MSMEs. To be successful, the PLI scheme should be expanded to include fabrics and garments made of natural products too.

Until then the industry watches….

RELATED TOPICS:#NA

With over 30 years of experience, Sanjay is a veteran in the sourcing field. He started his buying house in 1989, exporting fabrics to Bangladesh. He then diversified into exports of yarn, commodities like rice, fresh fruits & vegetables. He also started contract farming of raw cotton in Africa.

90 Comments

My spouse and I stumbled over here coming from a different web address and thought I should check things out. I like what I see so now i'm following you. Look forward to finding out about your web page repeatedly.

Greetings from Carolina! I'm bored at work so I decided to check out your website on my iphone during lunch break. I really like the knowledge you present here and can't wait to take a look when I get home. I'm shocked at how quick your blog loaded on my cell phone .. I'm not even using WIFI, just 3G .. Anyways, good blog!

This piece of writing provides clear idea designed for the new viewers of blogging, that really how to do blogging.

Hey there just wanted to give you a quick heads up. The text in your content seem to be running off the screen in Opera. I'm not sure if this is a format issue or something to do with web browser compatibility but I figured I'd post to let you know. The design and style look great though! Hope you get the issue fixed soon. Many thanks

What's up, I desire to subscribe for this blog to take hottest updates, so where can i do it please help.

Very nice post. I just stumbled upon your blog and wanted to say that I have truly enjoyed surfing around your blog posts. In any case I will be subscribing to your feed and I hope you write again very soon!

Sweet blog! I found it while browsing on Yahoo News. Do you have any tips on how to get listed in Yahoo News? I've been trying for a while but I never seem to get there! Thanks

Thank you for the auspicious writeup. It in fact was a amusement account it. Look advanced to more added agreeable from you! However, how can we communicate?

I'm really enjoying the theme/design of your weblog. Do you ever run into any browser compatibility problems? A handful of my blog readers have complained about my site not working correctly in Explorer but looks great in Chrome. Do you have any ideas to help fix this issue?

I’m not that much of a internet reader to be honest but your blogs really nice, keep it up! I'll go ahead and bookmark your website to come back in the future. All the best

I needed to thank you for this great read!! I absolutely loved every little bit of it. I have you bookmarked to check out new things you post…

Hi! I've been following your blog for a while now and finally got the bravery to go ahead and give you a shout out from Lubbock Texas! Just wanted to say keep up the great job!

Greetings! Very helpful advice in this particular article! It is the little changes that make the most significant changes. Thanks a lot for sharing!

Quality articles is the main to be a focus for the viewers to visit the website, that's what this web site is providing.

For newest news you have to go to see world-wide-web and on web I found this web page as a most excellent web page for newest updates.

Hello, I want to subscribe for this blog to take most up-to-date updates, therefore where can i do it please help out.

I'm amazed, I must say. Rarely do I come across a blog that's both equally educative and interesting, and let me tell you, you've hit the nail on the head. The problem is an issue that not enough men and women are speaking intelligently about. Now i'm very happy that I came across this during my hunt for something relating to this.

These are truly great ideas in concerning blogging. You have touched some nice points here. Any way keep up wrinting.

Hello there, You have done a fantastic job. I will definitely digg it and personally recommend to my friends. I am confident they will be benefited from this web site.

I’m not that much of a online reader to be honest but your blogs really nice, keep it up! I'll go ahead and bookmark your website to come back later. Cheers

Very good article. I certainly love this site. Keep it up!

Pretty component of content. I just stumbled upon your website and in accession capital to say that I get actually loved account your blog posts. Anyway I will be subscribing in your augment or even I success you get admission to constantly quickly.

Nice answer back in return of this issue with real arguments and describing all concerning that.

This paragraph gives clear idea designed for the new users of blogging, that really how to do blogging and site-building.

whoah this weblog is great i love studying your posts. Stay up the great work! You recognize, a lot of individuals are looking round for this info, you could aid them greatly.

My brother suggested I might like this blog. He was totally right. This publish actually made my day. You can not consider just how a lot time I had spent for this info! Thank you!

Hi, i read your blog from time to time and i own a similar one and i was just wondering if you get a lot of spam remarks? If so how do you reduce it, any plugin or anything you can recommend? I get so much lately it's driving me mad so any support is very much appreciated.

I just could not depart your site prior to suggesting that I actually loved the standard info an individual supply in your guests? Is going to be back steadily in order to inspect new posts

Undeniably consider that that you said. Your favourite reason seemed to be on the web the easiest thing to take note of. I say to you, I definitely get annoyed while other folks think about worries that they plainly don't recognize about. You managed to hit the nail upon the highest and also outlined out the entire thing without having side-effects , people could take a signal. Will likely be back to get more. Thanks

Fantastic goods from you, man. I've understand your stuff previous to and you are just too magnificent. I really like what you've acquired here, really like what you're stating and the way in which you say it. You make it enjoyable and you still take care of to keep it sensible. I can't wait to read far more from you. This is really a great site.

For the reason that the admin of this web site is working, no question very shortly it will be well-known, due to its quality contents.

hello!,I really like your writing so so much! share we keep up a correspondence extra approximately your article on AOL? I require an expert in this space to solve my problem. May be that is you! Looking forward to look you.

Having read this I thought it was extremely enlightening. I appreciate you spending some time and effort to put this content together. I once again find myself personally spending a significant amount of time both reading and leaving comments. But so what, it was still worth it!

Hiya! I know this is kinda off topic however I'd figured I'd ask. Would you be interested in exchanging links or maybe guest authoring a blog article or vice-versa? My website discusses a lot of the same topics as yours and I feel we could greatly benefit from each other. If you are interested feel free to send me an e-mail. I look forward to hearing from you! Wonderful blog by the way!

First off I want to say fantastic blog! I had a quick question in which I'd like to ask if you don't mind. I was interested to find out how you center yourself and clear your head before writing. I have had a difficult time clearing my thoughts in getting my ideas out. I do take pleasure in writing however it just seems like the first 10 to 15 minutes are generally lost just trying to figure out how to begin. Any recommendations or tips? Many thanks!

Thanks for your personal marvelous posting! I certainly enjoyed reading it, you are a great author. I will ensure that I bookmark your blog and will come back at some point. I want to encourage you to definitely continue your great writing, have a nice weekend!

Wow, wonderful weblog structure! How long have you been blogging for? you make blogging glance easy. The overall look of your site is magnificent, let alone the content material!

Definitely consider that that you said. Your favorite reason seemed to be on the web the simplest thing to be aware of. I say to you, I definitely get annoyed while people think about issues that they just don't recognize about. You controlled to hit the nail upon the highest and defined out the entire thing without having side-effects , folks can take a signal. Will likely be again to get more. Thanks

Hi Dear, are you really visiting this web site regularly, if so then you will absolutely get fastidious know-how.

You made some good points there. I checked on the web for more info about the issue and found most individuals will go along with your views on this website.

fantastic publish, very informative. I'm wondering why the opposite specialists of this sector don't realize this. You must proceed your writing. I'm confident, you've a huge readers' base already!

I enjoy what you guys are usually up too. Such clever work and coverage! Keep up the excellent works guys I've added you guys to my own blogroll.

Excellent beat ! I would like to apprentice while you amend your website, how could i subscribe for a blog web site? The account aided me a acceptable deal. I had been a little bit acquainted of this your broadcast provided bright clear concept

Right here is the perfect website for everyone who wishes to understand this topic. You realize a whole lot its almost hard to argue with you (not that I personally would want to…HaHa). You certainly put a new spin on a subject that's been written about for a long time. Excellent stuff, just great!

It is perfect time to make a few plans for the long run and it's time to be happy. I have read this post and if I may just I want to counsel you some fascinating things or advice. Perhaps you can write subsequent articles relating to this article. I wish to learn more things about it!

Hello just wanted to give you a brief heads up and let you know a few of the pictures aren't loading correctly. I'm not sure why but I think its a linking issue. I've tried it in two different browsers and both show the same results.

Everything is very open with a precise explanation of the issues. It was definitely informative. Your website is extremely helpful. Thank you for sharing!

Hello there! Do you know if they make any plugins to help with Search Engine Optimization? I'm trying to get my blog to rank for some targeted keywords but I'm not seeing very good gains. If you know of any please share. Thanks!

I don't even know how I ended up here, but I thought this post was great. I don't know who you are but certainly you are going to a famous blogger if you aren't already ;) Cheers!

Hi there! Do you know if they make any plugins to safeguard against hackers? I'm kinda paranoid about losing everything I've worked hard on. Any recommendations?

Why visitors still use to read news papers when in this technological globe the whole thing is available on web?

My relatives all the time say that I am wasting my time here at web, but I know I am getting experience every day by reading such pleasant articles or reviews.

This is a good tip especially to those fresh to the blogosphere. Short but very accurate info… Appreciate your sharing this one. A must read article!

I need to to thank you for this excellent read!! I definitely loved every bit of it. I've got you saved as a favorite to look at new things you post…

A fascinating discussion is worth comment. I think that you ought to write more about this issue, it may not be a taboo subject but usually folks don't talk about these issues. To the next! Many thanks!!

An outstanding share! I have just forwarded this onto a coworker who had been doing a little homework on this. And he actually ordered me dinner simply because I found it for him... lol. So let me reword this.... Thank YOU for the meal!! But yeah, thanks for spending the time to talk about this matter here on your web site.

Magnificent goods from you, man. I have understand your stuff previous to and you're just too wonderful. I really like what you have acquired here, really like what you're stating and the way in which you say it. You make it enjoyable and you still care for to keep it sensible. I cant wait to read far more from you. This is actually a tremendous web site.

This piece of writing will help the internet visitors for setting up new website or even a blog from start to end.

I absolutely love your blog and find nearly all of your post's to be what precisely I'm looking for. Would you offer guest writers to write content for you? I wouldn't mind writing a post or elaborating on a number of the subjects you write regarding here. Again, awesome web site!

Its not my first time to visit this site, i am visiting this web site dailly and take good facts from here daily.

Hurrah, that's what I was looking for, what a data! existing here at this website, thanks admin of this web site.

I need to to thank you for this good read!! I certainly enjoyed every bit of it. I have got you saved as a favorite to check out new stuff you post…

Hello there! Quick question that's completely off topic. Do you know how to make your site mobile friendly? My weblog looks weird when browsing from my apple iphone. I'm trying to find a template or plugin that might be able to fix this issue. If you have any suggestions, please share. Thanks!

I'm not sure why but this weblog is loading incredibly slow for me. Is anyone else having this issue or is it a problem on my end? I'll check back later on and see if the problem still exists.

Terrific work! This is the kind of info that are supposed to be shared around the web. Disgrace on the search engines for now not positioning this publish higher! Come on over and visit my website . Thank you =)

Sexual Behavior: Sexual conduct refers to the steps and routines that a particular person engages in to convey their sexuality. Built by Thorn, Safer allows tech platforms to identify, remove, and report boy or girl sexual abuse material at scale. A review in Taiwan of marriages in which the future bride is adopted in the groom's family as an toddler or compact baby uncovered that these marriages have higher infidelity and divorce and decrease fertility than everyday marriages it has been argued that this observation is regular with the Westermarck result. Despite its tiny stature, its formal identify is the longest of any state's. And talking of fiction that masquerades as fact, the satire newspaper-cum-web page, The Onion, acquired its get started at 1 of this state's universities. And a person of its towns, Longview, has thoughtfully constructed various bridges just for squirrels. Aberdeen, Washington, pays homage to the late, great Kurt Cobain with its town indication, which exhorts readers to "Come As You Are." Who is aware if Cobain penned any Nirvana lyrics though sitting down in a Starbucks, which -- along with world-wide-web marketplace Amazon -- remains 1 of Washington State's most very well-identified exports.

Wonderful beat ! I would like to apprentice while you amend your website, how can i subscribe for a weblog site? The account helped me a applicable deal. I had been a little bit acquainted of this your broadcast offered shiny transparent idea

This is really interesting, You are a very skilled blogger. I've joined your feed and look forward to seeking more of your fantastic post. Also, I've shared your web site in my social networks!

Hello there! This post could not be written any better! Reading through this post reminds me of my previous roommate! He continually kept preaching about this. I am going to send this article to him. Pretty sure he'll have a good read. Many thanks for sharing!

My relatives every time say that I am wasting my time here at web, except I know I am getting experience daily by reading such fastidious posts.

Интересный пост! Давно искал рабочее зеркало MelBet. Статья очень помогла. Спасибо автору.

Thanks for sharing your thoughts on 부천출장안마. Regards

What's up, everything is going sound here and ofcourse every one is sharing facts, that's truly excellent, keep up writing.

I have read several good stuff here. Certainly worth bookmarking for revisiting. I surprise how so much effort you place to make any such fantastic informative web site.

Wow, this piece of writing is good, my sister is analyzing such things, thus I am going to inform her.

corrupt the whole shebang is dispassionate, I advise, people you command not feel! Everything is critical, as a result of you. The whole works, show one's gratitude you. Admin, thank you. Thank you as a service to the great site. Credit you deeply much, I was waiting to believe, like on no occasion before! go for super, caboodle works distinguished, and who doesn't like it, swallow yourself a goose, and dote on its thought!

"The same position can have different movements that totally change the experience," McDevitt stated. Most of these accidents associated with the position come all the way down to "erratic thrusting," in accordance with doctor and influencer Karan Raj, when "the movements of the two parties are not in sync". As it seems there are numerous, many known to "a select few" but "undiscovered" sites and sacred sites scattered throughout the desert southwest and elsewhere, especially so the very controversial albeit highly unlikely Buddha Cave stated to be excessive in the canyon partitions of the Grand Canyon as documented on the WPA page previously cited. At first they discovered the white man foraging in the wilderness one day and painting footage the next day a bit strange and kept their distance, however after awhile they found he was neither there to destroy the surroundings nor to use them. A few years later an nearly duplicate episode would occur in the presence of the Jamaican man of spells referred to as an Obeah. L'Amour, while hitchhiking across New Mexico as a young man decided to take what he thought could be a superb shortcut via the desert.

I'd like to thank you for the efforts you've put in writing this site. I'm hoping to see the same high-grade content from you in the future as well. In truth, your creative writing abilities has encouraged me to get my very own site now ;)

Superb, what a web site it is! This blog presents helpful information to us, keep it up.

What a information of un-ambiguity and preserveness of precious know-how on the topic of unexpected emotions.

Simply wish to say your article is as amazing. The clearness in your post is simply cool and i could assume you're an expert on this subject. Well with your permission let me to grab your feed to keep up to date with forthcoming post. Thanks a million and please continue the rewarding work.

Hello There. I found your blog the usage of msn. That is a very well written article. I will be sure to bookmark it and come back to learn extra of your helpful information. Thank you for the post. I will certainly comeback.

Hey! I know this is somewhat off-topic however I had to ask. Does running a well-established blog such as yours require a massive amount work? I am completely new to running a blog however I do write in my diary everyday. I'd like to start a blog so I will be able to share my own experience and thoughts online. Please let me know if you have any kind of ideas or tips for new aspiring bloggers. Appreciate it!

It's perfect time to make a few plans for the future and it is time to be happy. I have read this put up and if I may I wish to counsel you few fascinating issues or advice. Perhaps you can write subsequent articles regarding this article. I desire to read more things about it!

It is the best time to make some plans for the long run and it's time to be happy. I've learn this submit and if I may I want to recommend you some interesting things or tips. Perhaps you can write subsequent articles regarding this article. I wish to learn even more things about it!

I've been browsing online greater than three hours today, but I by no means found any fascinating article like yours. It is lovely price enough for me. Personally, if all site owners and bloggers made excellent content as you probably did, the internet shall be much more helpful than ever before.

Awesome things here. I'm very glad to see your post. Thanks so much and I am having a look forward to contact you. Will you kindly drop me a mail?

What's up, after reading this amazing post i am as well delighted to share my knowledge here with friends.

What a well researched and informative article...An eye opener for a novice like me..Such minute details...Though I am not a textile expert..but I personally feel tat v need to take a holistic approach to d present situation...As always Sanjay ..Kudos 2 u..for this interesting and informative article..Bless u..

As I think about it, I feel that light manufacturing generally and textiles in particular, has been an opportunity lost for India. When Nehru came up for his vision of “temples of modern India”, it turned out to be a very capital and resource inefficient industrial strategy. The resources could’ve been more efficiently deployed in light manufacturing sectors, specifically textiles. India’s loss was rest of world’s gain. As globalisation stepped up post WW2, a series of countries – from Japan to SE asia to China to now Vietnam and Bangladesh – climbed onto the Textiles gravy train, becoming export powerhouses and generating mass employment – till they no longer remained competitive and were replaced. India, somehow, never became a serious player. We never seemed to be able to get our act together – then or now. Tirupur, Ludhiana etc have been exceptions, which seem to have dulled with time. I’m no textile expert, so don’t know what needs to be done. Whatever has, has not been enough!

SHOW MORE SHOW LESS

Leave a comment

Our email address will not be published. Required fields are marked *