Sakthivel says the scheme addresses concerns of garment exporters and encourages MMF manufacturing
The Rs.10,683 crore Production Linked Incentive (PLI) scheme is a major milestone for the textile sector to attract fresh investment, build capabilities and capture a significant share of the globally traded technical textiles and man-made fabrics (MMF).
“The Production Linked Incentive Scheme would be a booster push for the textile industry, not only for committing new investment in the sector but also scaling up the existing capabilities for enhanced output, rightly estimated by the government, at Rs.3 lakh crore over the next five years,” ASSOCHAM Secretary General, Deepak Sood said in welcoming the PLI scheme approval for the textile sector.
“It’s another major announcement for the textiles sector which would attract more investments and help India to capture significant share in large globally traded items of technical textiles and man-made textiles. Man-made and technical textiles are the growing sectors of the industry globally with immense domestic potential too. India can be a global player in these sectors with the support of PLI and would also help in creating large scale employment,” FICCI Secretary General Dilip Chenoy elaborated.
FIEO President Dr A Sakthivel pointed out that the Scheme addresses major concerns of garment exporters by encouraging domestic manufacturing of man-made fabrics (MMF) which hitherto is being imported and thus would add to domestic value addition with attendant benefits in employment.
He hoped India would get 10% share of the US$200 billion global MMF market in the next five years.
The Scheme will help in realigning our exports strategy which so far has been dependent on cotton products to move to man-made and technical textiles which together account for roughly two-third of the global trade in textiles.
“The MMF apparels currently account for 20% of our overall apparel exports and we should increase its share to 50% in next 5 years,” said Dr Sakthivel.
The Scheme will attract investment both domestically as well as through the FDI route as many companies in North and Far East are keen to invest in the MMF and Technical Textiles sectors.
The focus on setting up the unit in Tier-III and IV cities as well as in rural areas will help in inclusive growth and provide jobs at the doorstep. Since the priority under the Scheme will be on job creation, Dr Sakthivel said that the investment sought in the Scheme and the capital employment ratio in the textiles industry will help us to cross the direct employment target of 7.5 lakh.
The FIEO Chief is looking to increase the share of apparel and textiles in the country’s exports as besides PLI, the RoSCTL/RoDTEP and the proposal to set up 7 Mega Textiles Parks will increase the competitiveness of our manufacturing and exports.
Dr Sakthivel said that the PLI Scheme will make India Atma Nirbhar in man-made fabrics thus paving the way to make it a global champion in man-made apparels and technical textiles as well.
PLI scheme for textiles has come at an opportune time when world is also looking at alternate sourcing options and Indian industry needs support to grab this opportunity. There is an opportunity for India to double its share in next five years and take share of China (which is currently 35%).
“The Technical Textiles segment is a new age textile, whose application in several sectors of economy, including infrastructure, water, health and hygiene, defense, security, automobiles, aviation will improve the efficiencies in those sectors,” said S K Khandelia, Co-Chair, FICCI Textiles & Technical Textiles Committee.
“Similarly, MMF textiles are shaping up the textile’s consumption pattern across the globe. This is a crucial step towards making Indian textile manufacturing competitive and making the textile industry ready for a global footprint. By boosting domestic manufacturing and exports, I am sure that India will soon attain the status of self-reliance in the focused segments,” said Khandelia.
“Indian Textiles industry welcomes the Cabinet decision on PLI for textiles sector focused on manufacturing of MMF-based products and technical textiles. By focusing on these two high potential segments, the PLI scheme for textiles is expected to further diversify the base of Indian textiles industry,” Rajeev Gopal, Co-Chair, FICCI Textiles and Technical Textiles Committee.
“The PLI scheme would enhance India’s manufacturing capabilities by increasing investment and production in the focused segments,” Gopal said. #economy #incentives #manufacturing #exports #investments /fiinews.com
