Sluggish supply chain :
India has a strong raw material base both in natural and man-made fibers (MMFs). But, the country lacks severely in producing value-added fabrics and garments. In contrast, countries like Bangladesh
are making significant gains in the international market with their value added products. It imports cotton yarn from India and creates value-added products and exports them at a lower cost compared to India.
This supply chain deficiency is costing India dearly. And, the country is losing out against competing nations like China, Bangladesh, and Vietnam.
PLI to help exportors :
Recently introduced Production Linked Incentive (PLI) scheme is likely to focus on addressing these deficiencies. A new textile policy is also being drafted currently. It would primarily focus on promoting exports and creating employment opportunities.
Textile Minister Smriti Irani in a written reply in Loksabha informed that the policy will focus extensively on creating global champions in MMF apparel and Technical Textiles segment. The government will provide incentives from 3% to 15% on stipulated incremental turnover for the next five years. It will allow one year gestation period for brownfield investment. For greenfield investments, it would be two years.
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