March 22, 2023

Enabling a textiles boom! I write about how PM Narendra Modi ji’s grand vision for the textiles sector with 7 PM Mitra parks will make India a global textiles hub.

India’s rich tradition of textiles is poised for a quantum leap that will make it a global investment, manufacturing and export hub. Prime Minister Narendra Modi has announced seven PM MITRA (Mega Integrated Textile Region and Apparel) parks in Tamil Nadu, Telangana, Karnataka, Maharashtra, Gujarat, Madhya Pradesh and Uttar Pradesh that will be set up with an outlay of ₹4,445 crore. This would be the biggest-ever initiative for infrastructure in this sector.

Inspired by the PM’s 5F vision — Farm to Fibre to Factory to Fashion to Foreign — the PM MITRA scheme is a major step forward to achieve Aatmanirbhar Bharat and ‘Vocal for Local’. The mega parks will help the sector achieve its target of a turnover of $250 billion and exports of $100 billion by 2030.

It should create global champions with the help of world-class facilities, state-of-the-art infrastructure and an integrated value chain at each location. Amaster developer will be selected who will be responsible for designing, planning, building, financing, operating and maintaining a PM MITRA park. This is a big jump for the industry as the value chain is now scattered across the country, which adds costs and delays in each link of the chain.

Indian industry will become globally competitive as the parks will help scale up operations, cut costs, improve efficiency and supply high-quality textiles and apparels.

These parks will create about 20 lakh jobs and attract an estimated ₹70,000 crore of domestic and foreign investment. They will be shining examples of sustainability, with zero liquid discharge, common effluent treatment, use of emission-free renewable energy and adoption of global best practices. This is in line with the PM’s callfor ‘zero defect zero effect (on environment)’ manufacturing.

There were 18 proposals from 13 states to set up PM MITRA parks. The seven mega parks were selected through a transparent process validated by the PM Gati Shakti National Infrastructure Masterplan. It is another example of collaborative federalism as both the Centre and the concerned states will be partners in the special purpose vehicles (SPV) that will set up and manage these parks. State governments will provide land parcels of at least 1,000 acres and will facilitate provision of reliable power and water supply, waste disposal, an effective single-window clearance system, along with a conducive and stable policy regime to ensure smooth operations and ease of doing business.

The parks will offer excellent infrastructure, plug-and-play facilities, as well as training and research support for the industry. Central and state governments will work together to increase investment, promote innovation and create jobs to make India the world leader in textiles.

The textiles industry has responded enthusiastically to this initiative, which was taken after extensive consultations with all stakeholders. Leading industry associations of the textiles sector along with top industry bodies such as CII and Ficci have expressed optimism that lower logistics cost, modern infrastructure, global scale of operations and supportive policies from the Centre and thestates will take Indian textiles to new heights and provide top-quality products at competitive prices to Indian and foreign consumers.

The textiles ministry will oversee the execution of these projects and provide financial support of ₹500 crore for greenfield parks and ₹200 crore for brownfield parks as development capital support to the SPV of each park. It will also provide up to ₹300 crore to units in each park to incentivise speedy implementation. It will also facilitate convergence with other government schemes to give additional incentives.

PM MITRA dovetails with GoI’s initiatives to sign free trade agreements (FTAs), which open up developed markets for Indian textiles, apparels and several other sectors. India has already signed trade deals with the UAE and Australia, and is negotiating with Canada, Britain and the EU. These efforts will help Indian textiles get deeper access to profitable developed markets and help the country significantly increase its share in the global textiles and apparel trade.

India is already one of the largest exporters of textiles and apparels in the world. But its aspiration in Amrit Kaal, as the country marches to become a developed nation by 2047, is to be the largest exporter in the world. With PM MITRA, we are on the right track.

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