Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

PM MITRA Scheme: 7 States to get textile parks


From UPSC perspective, the following things are important :

Prelims level: PM MITRA

Mains level: Not Much

pm mitra

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”.

Its implementation

  • 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.

Envisaged Benefits

  • 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


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