From UPSC perspective, the following things are important :
Prelims level : PM MITRA
Mains level : Not Much
The Centre has selected seven states in India to set up new textile parks under the PM MITRA (Mega Investment Textiles Parks) Scheme.
What is PM MITRA Scheme?
- The scheme was announced in October 2021, and the parks will be established by 2026-27.
- MITRA aims to enable the textile industry to become globally competitive, attract large investments, and boost employment generation and exports.
- It will create world-class infrastructure with plug and play facilities to enable create global champions in exports.
- It will be launched in addition to the Production Linked Incentive Scheme (PLI).
- It will give our domestic manufacturers a level-playing field in the international textiles market & pave the way for India to become a global champion of textiles exports across all segments”.
- An special purpose vehicle (SPV) owned by Centre and State Government will be set up for each park, which will oversee the implementation of the project.
- The Ministry of Textiles will provide financial support in the form of Development Capital Support up to ₹500 crore per park to the Park SPV.
- A Competitive Incentive Support (CIS) up to ₹300 crore per park to the units in PM MITRA Park shall also be provided to incentivize speedy implementation.
- Convergence with other Government of India schemes shall also be facilitated in order to ensure additional incentives to the Master Developer and investor units.
- The parks will boost the textiles sector in line with 5F (Farm to Fibre to Factory to Fashion to Foreign) vision.
- The Centre envisages an investment of nearly ₹70,000 crore into these parks, with employment generation for about 20 lakh people.
- The parks will function as centres of opportunity to create an integrated textiles value chain, right from spinning, weaving, processing, dyeing and printing to garment manufacturing, all at a single location.
Need for such scheme
- Textile industry is critical to India’s economy, employing 4.5 crore people and contributing 7% of GDP. Despite its potential, the industry is facing challenges that need to be addressed.
- The unorganized textile industry in the country increased wastage and logistical costs, impacting the competitiveness of the country’s textile sector.
Challenges Faced by India’s Textile Industry
- High input costs due to high taxes and tariffs, inadequate infrastructure, and a lack of skilled labor.
- Competition from cheaper imports (ex. from Bangladesh) and a growing informal sector.
- Environmental concerns related to the industry’s high water usage, pollution, and hazardous waste disposal.
- The pandemic further disrupted supply chains and led to reduced demand.
- PM MITRA Parks represent a unique model where the Centre and State Governments will work together to increase investment, promote innovation, create job opportunities and ultimately make India a global hub for textile manufacturing and exports.
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PM MITRA: PM Mega *INTEGRATED* Textile Region and Apparel