The amount of investment brought through foreign direct investment (FDI) in the textile sectors during 2017–22 was $1,522.23 million.
- The Union Minister of State for Textiles, Darshana Jardosh, said this in a written reply to a question in the Lok Sabha on Wednesday.
- As things stand, 100% FDI is allowed in the textile sector under the automatic route.
Steps Taken: According to the minister, the Indian government has taken the following steps to modernise the textiles industry, enhance exports and promote FDI:
- The government has approved setting up of seven Pradhan Mantri Mega Integrated Textile Region and Apparel (PM MITRA) parks in greenfield/brownfield sites with an outlay of ₹ 4,445 crore [1 crore = 10 million] for a period of seven years till 2027–28. These parks will enable the textiles industry to become globally competitive, attract large investment and boost employment generation.
- The government has approved the Production Linked Incentive (PLI) Scheme for textiles, with an approved outlay of ₹10,683 crore, to promote production of manmade fibre (MMF) apparel, MMF fabrics, and products of technical textiles in the country to enable the textiles sector to achieve size and scale and to become competitive.
- The government has allocated an outlay of ₹1,480 crore for the National Technical Textiles Mission (NTTM) to promote and develop the technical textiles sector in India.
- A Silk Samagra-2 scheme is being implemented from 2021–22 to 2025–26 for the development of the sericulture industry in the country.
- The government is also implementing various schemes/programmes such as the SAMARTH Scheme for capacity building in the textiles sector, National Handloom Development Programme, Raw Material Supply Scheme, National Handicraft Development Programme, Comprehensive Handicrafts Cluster Development Scheme, Integrated Wool Development Programme, among others, to promote and develop the indigenous textiles sector.
- India has so far signed 13 free trade agreements (FTAs), including recently concluded Comprehensive Economic Partnership Agreement with the UAE and the Economic Cooperation and Trade Agreement with Australia; and six preferential trade agreements (PTAs) with various trading partners. India is currently negotiating FTAs with trading partners such as the United Kingdom, the European Union and Canada for enhancing market access of Indian products, including textiles, while keeping in mind national interests and domestic sensitivities.
- The Market Access Initiative scheme of the government currently provides financial support to various export promotion councils and trade bodies engaged in the promotion of textiles and garments exports, for organising and participating in trade fairs, exhibitions, buyer-seller meets, etc.
- The government has also put in place a liberal and transparent investor-friendly FDI policy.
Agreements in Place: The following MoUs have been signed with other countries to boost the textiles industry in the country:
- MoU with the National Agriculture Food Research Organization, Japan to promote collaborative research in the field of silkworm and silk industry.
- MoU between the Central Silk Board and Uzbekipaksanoat, Uzbekistan on cooperation in sericulture and the silk industry.
- MoU between the Ministry of Textiles and the Department of Agriculture, Fisheries and Forestry, Government of Australia for establishing a joint working group on cooperation in the field of wool and woollen products.
- MoU between India and Sri Lanka on procedural arrangements for import of apparel articles from Sri Lanka to India on a tariff rate quota under the India Sri Lanka Free Trade Agreement.
- MoU between India and Sri Lanka on cooperation in the development of small and medium-sized enterprises in handloom, powerloom and textiles.
- MoU between the Textiles Committee and Nissenken Quality Evaluation Centre, Japan.
