GROWTH OF THE TEXTILE
SECTOR IN INDIA
The textile industry’s
predominance in the Indian economy is manifest in its significant
contributions to industrial production, employment generation,
and foreign exchange earnings during the last five years. Currently,
it adds about 14 per cent to the industrial production and about
four per cent to the GDP. It provides direct employment to nearly
35 million people. Together with the agriculture sector, it provides
employment to over 90 million people. The contribution of this
industry to the gross export earnings of the country is over 28
per cent while it adds only 4 per cent to the country’s gross
import bill. It is the only industry which is self-reliant from
raw material to the highest value added products like garments.
National Textile
Policy 2000
The last few years
have seen tremendous changes in the textile scenario. To prepare
the textile industry to meet the challenges of integration with
the world textile market, the National Textile Policy was announced
on November 2, 2000. Aimed at creating new opportunities for growth
with global market being more accessible to trade, several initiatives
for modernization and investment for growth have begun to create
the conditions necessary to achieve the objective of the policy,
namely, to develop a strong and vibrant textile industry capable
of producing quality cloth at an acceptable price, contributing
increasingly to the provision of sustainable employment and economic
growth of the country and competing with confidence for an increased
share of global market.
Modernisation
The Government
launched the Textile Centre Infrastructure Development Scheme
(TCIDS) for modernising infrastructure facilities at major textile
centers of the country in March 2002. The scheme is not location-specific.
All the States and Union Territories (UTs) have been requested
to formulate and furnish project reports for bridging critical
gaps in infrastructure at major centres which can be considered
for assistance under the scheme. In keeping with the liberalisation
of the economy, a number of textile items listed among essential
commodities have been deleted. Now out of 11 items, only 5 figure
in the list of essential commodities. These are cotton and woollen
textiles, cotton either ginned or unginned and cotton seeds, yarn,
made wholly from cotton, raw jute and jute textiles.
The Ministry of Textiles
has earmarked Rs. 100 crore for a one-time special rebate on handloom
fabrics to kick-start the employment-intensive industry and revive
its production cycle. An additional Rs. 125 crore is to be spent
on skill upgradation of one lakh handloom weavers. The Ministry
has also started a special contributory insurance scheme for one
million weavers and artisans which will combine the Jan Shree
Bima Yojana with group insurance.
Upgradation
One of the important
targets of the National Textile Policy 2000 is a vigorous implementation
of the Technology Upgradation Fund Scheme (TUFS). Launched by
the Ministry in April 1999, it aims at providing impetus to the
modernization of textile and jute industry. To enable a greater
number of small scale units to avail of the benefits under TUFS
the option to take an upfront 12 per cent credit link capital
subsidy has also been provided. The regional office of Textile
Commissioner holds facilitation camps so that more industrial
units including powerlooms can make use of the scheme. Till November
2002 a total of 1970 applications were received. Out of them 1,734
applicants were sanctioned loans upto Rs. 5,786.63 crore. Out
of this Rs. 4106.99 crore has already been disbursed to 1,395
applicants.
Technology
Mission
Considering the importance
of cotton crop in the national economy, the Government of India
launched a Technology Mission on Cotton (TMC) in February 2000
to address the issues of low productivity and contamination. The
Mission consists of four Mini Missions which are being jointly
implemented by the Ministry of Agriculture and Ministry of Textiles
with the following objectives: Mini Mission I: Cotton research
and technology generation. Mini Mission II :Transfer of technology
and development. Mini Mission III : Improvement of marketing infrastructure.
Mini Mission IV: Modernization/ upgradation of factories. Mini
Missions I & II are being implemented by the Indian Council
of Agricultural Research (ICAR) and the Ministry of Agriculture
respectively while the Ministry of Textiles is the nodal agency
for implementation of Mini Missions III & IV. Upto November
2002, under Mini Mission-III, 98 project proposals had been sanctioned.
The total estimated cost is Rs. 170 crore out of which the Government
of India’s share would be Rs. 85 crore. Under Mini Mission-IV,
modernization of 187 ginning and pressing factories have been
sanctioned at an estimated cost of Rs. 250 crore. Out of this
the Centre’s share would be Rs. 43 crore.
Sericulture
The last two years
of the Ninth Plan witnessed a breakthrough in R & D by the
Central Silk Board in tropicalizing the inherently temperate bivoltine
silkworms, developing host-plants with significantly high leaf
yields for mulberry silkworms, perfecting a package of practices
for raising productivity at each stage of cocoon production, including
pest management, disease control, development of more efficient
rearing and cocooning equipment, eco-friendly methods of rearing,
and efficient recycling of silkworm bed refuse and developing
and popularizing reeling and reeling-cum-twisting machines and
spinning wheels for reeled and spun silks of all sub-sectors with
better ergonomics.
The recent breakthrough
in R & D and the development of a successful sericulture package
for gradeable quality of bivoltine mulberry silk has added to
the prospects of the industry by carrying with it the promise
of a significant rise in production as well as in the quality
of silk. The high tensile strength of bivoltine silk adds to its
other advantages by making possible the use of multi-end reeling
machines and modern fast powerlooms, thus promising an increase
in quality and productivity along the entire value-chain. For
development of bivoltine sericulture, the strategy for growth
has been put into the field. This is expected to spur the yields
to go up from the current level of about 750 kg of cocoons from
a hectare of mulberry plantation to over 1600 kg by the end of
the Tenth Plan. Already, bivoltine silk production has increased
from 370 tonne in 1999-2000 to 575 tonne in 2000-2001; the yield
for 2001-2002 was 750 tonne provisionally.
Weaving Sector
The Textiles
Ministry has drawn up a programme for modernization of the decentralized
powerloom sector by 2004. The main instrument is the TUFS, which
has been modified to allow the beneficiary the option of taking
12 per cent subsidy linked to credit. The lead implementation
agency is the Powerloom Service Centres (PSCs) which are being
modernized to carry out a facilitation role. A cluster approach
is being followed and 16 major powerloom clusters have been identified
to make a focused effort for modernization. The state governments’
coordination has been emphasized. The banks are being involved
into the programme.
Schemes
A new scheme
called Baba Saheb Ambedkar Hastshilp Vikas Yojana(AHVS) has been
formulated which is essentially a people-centric approach and
involves mobilization of the artisan community in important craft
clusters all over the country into self-help groups and thrift
and credit societies. Symposia on Baba Saheb Ambedkar Hastashilp
Vikas Yojana for the crystallization of critical issues and adoption
of implementation module for the AHVY were organized at Jaipur,
Bhopal, Lucknow and Kolkata.
The Government launched
an integrated and comprehensive scheme called the Deen Dayal Hathkargha
Protsahan Yojana on April 1,2000 to provide assistance for the
entire gamut of handloom sector activities like product development,
infrastructure and institutional support, training to weavers,
supply of equipment and marketing support for weavers within or
outside the cooperative fold, both at the micro and macro levels.
The scheme is intended to be in operation till the end of the
10th Five Year Plan. The outlay envisaged is Rs. 690 crore, including
the Central share of Rs. 360.00 crore to be given to the States
on submission of project proposals.
Special Package
During the Prime
Minister’s visit to Jammu and Kashmir in May 2002 a Special Package
of Assistance was announced for that State. The contribution of
textiles and handicrafts sector to that package is to the tune
of Rs.70 crore. Action Plans for implementation of the package
have been prepared and are under implementation. The Department
of J&K Affairs in the Ministry of Home Affairs and PMO have
regularly been monitoring the progress of implementation.
North-East
Focus
Special focus
is being given to implement the Prime Minister’s package on textiles
and textile -based activities like handicrafts, handlooms, sericulture
and jute in the North Eastern States. The important follow-up
action already taken in this regard include raising the share
of Central assistance (excluding for marketing) from 75 per cent
to 90 per cent for all Centrally-Sponsored Schemes and strengthening
the North Eastern Handicrafts and Handlooms Development Corporation
(NEHHDC). It is now under the administrative control of the Department
of North Eastern Region (DONER). During the Ninth Plan a provision
of Rs. 42 crore was made and an amount of Rs. 41 crore spent on
the development schemes being implemented in the North-Eastern
States. (PIB Features)
Based
on inputs from the Ministry of Textiles
