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This article is more than 11 month old.

Budget 2021: Govt to set up 7 textile parks in 3 years

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The mega textile parks will have integrated facilities and quick turnaround time for minimizing transportation losses, eyeing big-ticket investments in the sector.

Budget 2021: Govt to set up 7 textile parks in 3 years
In a bid to boost the textile sector, the Union government has announced the Mega Investment Textiles Parks (MITRA) scheme to create mega textile parks in the country.
As part of the scheme, seven textile parks will be established over the next 3 years as the government looks to position itself as a competitive market for textile manufacturing and export globally. The textile sector was majorly impacted by the COVID-19 pandemic over the past year.
Announcing the Union Budget, Finance Minister Nirmala Sitharaman said, “To enable the textile industry to become globally competitive, attract large investments and boost employment generation, a scheme of Mega Investment Textiles Parks (MITRA) will be launched in addition to the PLI scheme.
This will create world-class infrastructure with plug and play facilities to enable create global champions in exports. 7 Textile Parks will be established over 3 years.
The government also reduced basic customs duty (BCD) on raw material inputs used to make manmade textiles. It has uniformly reduced the BCD rates on caprolactam, nylon chips and nylon fiber and yarn to 5  percent from 7.5 percent earlier. Noting that the textile sector generates employment and contributes significantly to the economy, the FM said that rationalizing duties will help the textile industry, MSMEs, and exports as well.
The textile industry in the country, which was hit hard due to the pandemic was also hoping for a uniform GST for apparel and for anti-dumping duties to be abolished on viscose staple fibre (VSF).
While the budget makes no mention of these requests, the Indian Texpreneurs Federation, an association of textile entrepreneurs based in Coimbatore, Tamil Nadu, said in a tweet announcement of the textile parks will bring the much-needed scale in the industry within a good timeframe of three years.
According to NITI Aayog, India is the second-largest manufacturer of textiles and clothing in the world and is also the second-largest exporter of textiles and apparel with a share of 5 percent of global trade.
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