New textile policy likely to be focussed on boosting domestic industry

Officials said seven mega textile hubs are expected to be set up across the country as per the policy

The government is coming up with a new textile policy that promises to boost the domestic industry, promote cultivation, processing and branding of organic cotton, and to set up hubs to manufacture machinery with the help of Foreign Direct Investment (FDI), officials familiar with the matter said.

Representational photo. (REUTERS)

“In keeping with the vision of Aatmanirbhar Bharat [to make India a self-reliant nation], the idea is to increase the domestic production of several components in the sector to make India a global textile player,” said a textile ministry official on the condition of anonymity. “We import nearly 75% of machinery for the textile sector. The aim is to change that and manufacture the machinery indigenously.”

News agency Press Trust of India on December 2 quoted textile secretary Ravi Capoor citing a Niti Aayog-led study that found Rs 13,000 crore worth machinery was being imported for the industry. The study highlighted that India has reached nowhere in terms of technology up-gradation except in the spinning segment.

Officials said seven mega textile hubs are expected to be set up across the country as per the policy. End-to-end production, from raw material to export of the finished product, would be available at these hubs. A mega textile park spread over 1,000 hectares of land will boost the growth of integrated textiles.

Officials said a textile research institute will be set up in Coimbatore under the policy. “A draft of the policy is likely to be floated for public feedback soon,” said a second official.

Officials said the policy seeks a structural shift to make India a man-made fibre (MMF) rather than a cotton-driven industry.

HT on December 9 reported the Union textile ministry was considering over Rs 10,000 crore production linked incentive scheme to encourage the industry. The ministry has identified 50 key sectors such as sanitary napkins and winterwear for the scheme with a five-year gestation period. It has removed the anti-dumping duty on purified terephthalic acid and acrylic fibre to boost the MMF sector. “The next step is to remove it from viscose fibre,” the second official said. “The world is moving towards MMF, we need to embrace that as well.”

Officials said the proposed policy also seeks to boost handcart and handloom sectors. “The move will take the industry forward and not let it be primarily subsidiary oriented,” the second official said.