The government announced the launch of the Mega Investment Textiles Parks (MITRA) scheme in the 2021-22 Union Budget to make the Indian textile industry globally competitive
About MITRA Scheme:
♦ The goal of the scheme is to make the textile industry globally competitive, attract large amounts of investmenst, and promote job opportunities and exports.
♦ FM announced that it will establish seven textile parks within three years.
Significance:
♦ Such parks have appeared in countries such as China and Vietnam, which help promote the development of the textile industry.
♦ India has been losing its competitive advantage in Bangladesh and Vietnam due to its lower labor costs, wider business scale, and the Free Trade Agreement (FTA) advantage enjoyed by them.
♦ The textile industry is the country’s second largest employment opportunity after agriculture, so the budget announcement means that the industry has taken an important step forward.
♦ Following a turbulent year in the textile and clothing industry in 2020, the industry has experienced a series of job losses, cancellation of orders and severe financial resource constraints.
♦ According to data from the National Investment Promotion and Facilitation Agency for Investment in India, by 2024-25, exports of the textile and apparel industry are expected to reach 300 billion U.S. dollars, and India’s market share will triple from 5% to 15%.
♦ It is estimated that by 2025-26, the scale of the industry will double to US$300 billion. For this purpose, 7 mega textile parks have been planned.
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