The draft national textile policy projects Indian textile and apparel exports to grow from $39 billion at present to $300 billion by the year 2024-25. This would translate into additional investments of the order of $120 billion and the creation of around 35 million additional jobs in the process.
An expert panel constituted by the government submitted the draft of the new National Textiles Policy - a blueprint for revitalising the textile industry - to textile minister Santosh Gangwar on Monday.
"The expert committee identified basic concerns in textiles sector and identified the national priorities in the form of a Vision & Strategy and the Action Plan for attaining the targets set out in the vision for exports, investment and employment by the year 2024-25," an official release said.
The key objectives of the new National Textiles Policy include developing a vision statement of the textile sector for the next decade, to treble market share from the current 4 per cent in the next decade.
Keeping in view the various changes in the textile industry on the domestic and international fronts and the need for a road map for the textile and apparel industry, ministry of textiles had initiated the process of reviewing the National Textile Policy, 2000, the release said.
Accordingly, an expert committee was constituted under the chairmanship of Ajay Shankar, which also had leading industrialists from the textile sector as members, to make fresh recommendations. The draft Vision, Strategy and Action Plan has been submitted by the chairman after a detailed process of stakeholder consultations across the entire value chain, the release said.
The draft Vision, Strategy & Action Plan for Indian Textiles & Apparels (2024) will be put up on the website of Textiles Ministry for inviting online comments / suggestions. It will also be discussed in the forthcoming meeting with state textiles ministers, before adoption.
It will remain open for comments till 18 August 2014 after which feedback will be considered and a final Vision, Strategy & Action Plan would be finalised for seeking approval of cabinet and adoption.
The new improved Textile Policy aims to address concerns over the availability of adequate skilled work force, labour reforms, attracting investments in the textile sector, and to provide a future road map for the textile and clothing industry.
Meanwhile, the country's textile and garment exports fell short of the target of $43 billion in 2013-14 despite a rupee depreciation.
The ministry of textiles has fixed an export target of $45 billion for textile products for the year 2014-15, in consultation with the Industry.
At present, exports of textile products are supported through different schemes under foreign trade policy, viz, focus market scheme, market-linked focus product scheme, focus product scheme and duty drawback scheme. Exporters of textile products can also avail duty-free import of capital goods under EPCG and raw material under advance authorisation scheme.
The benefit of interest subvention at the rate of 2 per cent, available for certain products of textile, was enhanced to 3 per cent with effect from August 2013 under the interest subvention scheme.
To encourage exports of ready-made garments, it has been announced in union budget 2014-15 to increase the duty free entitlement for import of trimmings, embellishments and other specified items from 3 per cent to 5 per cent of the value of exports.