Investments in textiles to create 17.37 million new jobs by 2012 news
07 July 2008

Investments in the textiles sector are expected to reach Rs150,600 crore by 2012 and this enhanced investment will generate 17.37 million new jobs in the sector. Addressing a press conference in Bengaluru today after releasing the booklet tilted Indian Textiles- The Sunrise Sector, highlighting the achievements of textiles sector during the four year tenure of the UPA government, minister for textiles Shankersinh Vaghela said that the biggest achievement of the UPA government was to turn around the sector from being in the sunset zone to to sunrise.

The minister of state for textiles, E V K S Elangovan, chairman, Central Silk Board, H. Hanumanthappa and the senior officials of the textiles ministry were present on the occasion.He said that the textiles industry was increasingly embracing modern technology and work processes, becoming more competitive, building strong brand equity for its products, and consistently achieving higher growth rates than ever in its long history.

The plan allocation for textiles was increased by 66.21 per cent in 2007-08, and by 11.45 per cent in 2008-09. Textiles exports, which were on a downward trajectory due to the appreciation of the rupee, are on the upswing due to timely remedial measures undertaken by the central government. Textiles exports were $20.5 billion in 2007-08, and are expected to increase by 20 per cent during this fiscal year.

The minister said that 30 integrated textiles parks had been sanctioned under the scheme for integrated textiles park (SITP), and these on operationalisation would attract an investment of Rs17,000 crore, and create employment for 5.75 lakh workers and produce textiles product worth Rs27,400 crore annually. All these parks will start operations by the end of 2008-09. He said that 10 additional parks would be set up by 2012 under SITP. He said that Doddabalapur Integrated Textiles Park in Karnataka would be completed by March next year.

Vaghela said that the government had imparted a new momentum to the implementation of the technology up-gradation fund scheme (TUFS) and, on the persistent demand of the industry, the scheme has been extended up to the end of the XIth Five-Year Plan. He said imported second hand machinery is ineligible for assistance under the TUFS, except automatic shuttleless looms, with a value cap of Rs8 lakh and of 10 year vintage and with residual life of 10 years. He said that the the efforts of the government had borne results and the TUFS has attracted 17,043 applications, involving an investment of Rs121,396 crore.

The minister said that Rs60 crore had been provided for the scheme for setting up of jute parks under the mini-mission IV of the Jute Technology Mission (JTM). The scheme will provide entrepreneurs with facilities similar to those available in the export processing zones. During the 11th Five-year Plan period, six jute parks would be set up in non-special category states and four in the north eastern states. Four Parks in non- special category States are proposed to be set up at Rezinagar, Murshidabad; Chackchaka, Cooch Behar and Shaktigarh, Burdhaman all in West Bengal, and Shrinagar in Rajasthan.

Vaghela added that three centers of national institute of fashion technology (NIFT) would also be set up shortly at Patna, Bhopal and Shillong. Recently two centres were opened at Rae Bareli, Uttar Pradesh and at Kannur, Kerala.

The minister also said that the technology mission on technical textiles would be implemented during the 11th Five-year Plan to build capacity, upgrade skills, create domestic and export market and standardise product development. Besides, the government will implement the 'development and growth of technical textiles' scheme during the 11th Five-year Plan at an estimated cost of Rs44 crore.

Four centres of excellence (COE) for meditech, geotech, agritech and buildtech group of technical textiles would also be set up under the scheme.

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Investments in textiles to create 17.37 million new jobs by 2012