India announces program to counter Bangladesh and Vietnam in textile market


| Update:
04 February 2021 20:42:24

India has announced plans to set up a Mega Investment Textiles Parks (MITRA) program to counter Bangladesh and Vietnam in the global textile market.

Indian Finance Minister Nirmala Sitharaman announced the plan on Monday with the aim of securing a globally competitive textile sector, attracting big investment and boosting job creation, reports The Economic Times.

“The MITRA program will create a world-class infrastructure with plug and play facilities to create global export champions. seven textile parks will be created over 3 years ”, declared the Minister.

The country announced the program after a tumultuous year for the textile and clothing industry in 2020 which saw a wave of job losses, canceled orders and an acute shortage of financial resources due to the epidemic. of coronavirus.

India has lost its competitive advantage over Bangladesh and Vietnam due to their low labor costs, the larger scale of operations, and the advantage of the Free Trade Agreement ( ALE) from which they benefit.

With the textile sector being the second largest generator of jobs in the country after agriculture, the budget announcements represent a significant step forward for the Indian industry.

“As a textile industry, we are losing our grip on India to countries like Bangladesh and Vietnam. Such measures will incentivize the garment manufacturing and textile industry. The textile sector,” says KR Sekar, partner, Deloitte India.

Welcoming the move, India’s Textiles Minister Smriti Irani tweeted that MITRA’s announcement would be a game-changer for the Indian textile industry.

“With the Production Incentive Program (PLI), MITRA will lead to increased investment and better employment opportunities. The focus on state-of-the-art infrastructure through MITRA will give our domestic manufacturers a level playing field in the international textiles market and pave the way for India to become a global champion in textile exports in all segments ” , she said in her tweets.

Exports of the textile and clothing industry are expected to reach $ 300 billion by 2024-25, leading to a tripling of India’s market share from 5% to 15%, according to the national promotion agency and of Investment Facilitation Invest India. The size of the industry is expected to double to reach $ 300 billion by 2025-2026, for which the 7 mega textile parks have been planned.

India Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said the measures would promote the production and export of synthetic fiber (MMF) garments.

“The Rs 106.83 billion PLI program for MMF technical garments and textiles, as well as the new Mega Investment Textile Parks program for the establishment of seven textile parks in India over three years will result in huge investments in the MMF sector. “, he underlined.

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