Piyush Goyal, the newly appointed textile minister, will soon review a proposed Rs 10,680 crore production linked incentive (PLI) scheme for the sector, according to reports.
In an interview with CNBC-TV18, Kulin Lalbhai, director of Arvind Fashions and Manoj Kumar Patodia, chairman of Cotton Textiles Export Promotion Council (TEXPROCIL) explained this and also gave an overall outlook for the sector.
“The logic behind the PLI is that India needs to diversify its export basket of products and the world has pivoted to manmade materials and technical textile is also growing and these are two sectors where India has not still achieved scale,” said Lalbhai.
The scheme is still under development. So the exact details of how much investment, how much growth, how many incentives are still being tweaked.
"We do expect the final structure of the scheme to come out over the next few weeks or months,” Lalbhai weighed in.
There are other investment challenges because of the relatively smaller size of the sector.
“We have a lot of fragmented industries. So it’s important that this scheme should take that into account,” said Patodia.
“There is a good possibility to increase the investments in the cotton sector especially in knitted fabric and technical textile in cotton and in man-made fibre (MMF), which can give a big flip to the scheme. Therefore, we (the industry) want the cotton to be included in the PLI,” he added.
For the entire discussion, watch the video
(Edited by : Abhishek Jha)