Piyush Goyal wants 10x jump in textiles sector capacity
Piyush Goyal, the new textiles minister, has set an ambitious target of scaling up the industry’s capacity by 10 times, amid indications that the government is planning more steps to boost investment and employment in the sector.
While Goyal has not given a timeframe, he wants the team of officers in the ministry to prepare a detailed action plan for each segment — ranging from fibres and garments to handloom and handicraft — along with the deadline, a source present in last week’s deliberations told TOI. Man-made fibre along with technical textiles and handloom have been identified as key thrust areas.
Currently, the size of the textiles industry is estimated at around $140 billion (over Rs 10 lakh crore), with apparel accounting for over half the share (see graphic). Textiles’ share in India’s GDP is estimated at around 2.3% and is the largest employer, employing about 45 million workers.
With around a quarter of the produce, getting exported, the government is hoping that a series of steps, including the extension of Rebate of State and Central Taxes & Levies (RoSCTL) will provide clarity to exporters when they negotiate contracts.
Similarly, integrated textiles parks are seen to be another thrust area, with the proposed free trade agreements with the UK and the EU expected to provide further fillip to Indian exporters. With lower duties in these crucial markets, the textiles industry is hoping to compete more favourably with rivals such as Bangladesh, which enjoy wage and tariff advantages.
Steps such as Mudra loans for startups to buy cotton-plucking machines for renting to farmers are proposed in a bid to create jobs and income for small entrepreneurs, said an officer.
At the same time, the minister has asked his team to focus on improving the quality of handloom and handicrafts and standardising it, given that there is a vast potential in a growing market such as India, apart from the exports market.
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