New Delhi, 18th December 2020: The Textiles Ministry is bringing to form a structure under which the Production Linked Incentive (PLI) Scheme for technical textiles and manmade fibre (MMF) segment will roll out, Union Cabinet Minister, Ms Smriti Irani said at an ASSOCHAM Foundation Week Programme today.
“We are currently on the anvil of also bringing to the fore the new Indian textile policy, the last time India had a textile policy was two decades ago,” said Ms Irani, Minister for Textiles and Women & Child Development while virtually addressing first session on Day 5 of ASSOCHAM Foundation Week 2020: “India’s resilience: Aatmanirbhar roadmap towards a US$5 trillion economy,”
Highlighting the impact of agricultural reforms on Indian industry, Ms Irani said, “The Government of India in a determined effort has ensured that the MSP operations undergo with the help of technology and those who participate in the MSP operation receive direct benefit transfer of their funds in to their bank accounts.”
Sharing her perspective on the session theme – ‘Future lies in the past – Leveraging India’s embedded knowledge to pivot the country’s growth story,’ the Minister informed, “In 2013-14, in the cotton segment, the MSP operations were merely worth Rs 90 crore while last year the MSP operations in the cotton segment alone breached a value in total of Rs 28,500 crore. This season, I am proud to announce that in the cotton segment MSP operations worth Rs 14,659 crore have already been undertaken and 9.63 lakh farmers producing cotton in the country have directly received into their bank accounts an amount of Rs 11,799 crore, this is done in only two months.”
Addressing the ASSOCHAM event virtually She added, “This means, when we look at the policy reforms, the idea called Aatmanirbhar Bharat cannot come to a fruition when we work in silos. So while on one hand the Government of India undertakes agricultural reforms, on the other hand we leverage technology to provide farm support and undertake MSP operations.”
On the industry impact of engaging with farmers and industry on issues such as cotton, Ms Irani said, “Today if you look at extra-long staple cotton, we currently produce only four lakh bales, looking at the agricultural reforms, if the industry conjoins its efforts with farming community and we bring up the potential growth of production of ELS cotton from four lakh bales to 50 lakh bales, then the impact on the Indian cotton textiles industry will be such that we will increase our businesses from the current $18 billion (bn) to $80 bn, that is the potential that needs to be leveraged and explored.”
Talking about agricultural reforms she underlined that when reform takes place in one segment, its impact is determined across the value chain of Indian economy.
“When agricultural reforms came into being, it was a contribution of dialogues and deliberations that have been undertaken for 19 years across industries, agriculture sector, farmer organisations and specialists who want to leverage technology in the field of agriculture so that potential benefit is accrued not only by farmers but also industry and citizens at large,” she said further.
On India becoming the second largest manufacturer and exporter of personal protective equipment (PPE), the Union Minister said, “When Covid-19 pandemic hit Indian shores, not many across the globe were confident of India’s response, today as Minister of Textiles I can say that one of the greatest examples of Indian resilience was given by the Indian textiles industry in the manufacturing of PPE suits, provision for which was among the consistent demands of frontline workers and the medical community was across the world.”
She said that while the textiles industry was not prepared for, but it rose to this challenge. “It was an effort which involved almost all ministries and industry segments in support of Indian textiles industry.”
Highlighting the fact how industry giants held hands in support of SMEs in India, she informed about how a SME apparel manufacturing company wanted to contribute to the PPE story by reorienting their manufacturing processes and make PPE suits for medical community so that they could contribute to national cause but lacked finances for machinery and other equipment and on her request, Anil Agawal, Executive Chairman – Vedanta Resources Limited came forward to help them.
“So as we celebrate the fact that today India has become the second largest manufacturer and exporter of PPEs we celebrate the true Indian potential to partner with one another in times of crisis,” said Ms Irani.
Sharing his perspective, Dr Niranjan Hiranandani, president, ASSOCHAM assured industry’s full support to the Government to reach the goals of becoming an Aatmanirbhar Bharat and $5 trillion economy.
In his address, ASSOCHAM senior vice-president, Vineet Agarwal also echoed similar sentiments and lauded the Minister for being supportive to Indian industry.
Ms Dipali Goenka, CEO and Joint MD, Welspun India said, “India reigns supreme in cotton, handlooms and natural fibres. To unlock the next wave of growth, we need to focus on MMF and technical textiles.”
Ms Goenka added, “Post pandemic, global retailers are diversifying their supply chains and India is strongly positioned to have major share of such global changes. Textile will play a crucial role for a $5 tn inclusive economy.”
While Ms Priya Agarwal Hebbar, Director, Vedanta said, “Giving back is deeply engrained in the fabric of our Indian culture. The onus is on each one of us to support the underprivileged and to work for the betterment of communities so that we can build a better India. Vedanta, in partnership with the Ministry of Women & Child Development, has set up Nand Ghar that is transforming the Anganwadi ecosystem with modern amenities and focuses on eradicating child malnutrition, education through e-learning, access to quality healthcare and empowering women through skill development.”
T. Rajkumar, Chairman, Confederation of Indian Textile Industry (CITI) said, “Cotton being the main-stay for the Indian Textile & Clothing Industry since a long time and major foreign exchange earner for the Indian economy, the Hon’ble Union Minister of Textiles, Smt. Smriti Zubin Irani Ji launched the first-ever cotton brand “Kasturi” for the Indian Textile Industry on the occasion of Word Cotton Day celebrated and jointly organized by Ministry of Textiles and textile trade bodies. Being the largest cotton-producing country, it was the much-awaited demand of the Indian Textile Industry that Indian cotton should have its own brand and now with the launch of Kasturi, Indian cotton stakeholders can hope to get good price realization for their cotton products which usually fetch around 10% less realization while comparing the same with their counterparts at international markets.
The Central Government has also launched a Production Linked Incentive Scheme (PLI) to attract diversification, investment and growth in the Man-Made Fibre (MMF) and Technical Textiles segments and boost India’s share in these particular segments in the global textiles market. The scheme will give the much-needed impetus to the Government’s initiatives of “Make of India” and “Atmanirbhar Bharat”. The scheme is extended for 10 key specific sectors, of which Textile is one of the sectors and has been allocated Rs 10,683 crore of the total estimated outlay of Rs. 1.46 lakh crore, mainly for MMF and technical textile segment.”
In his address, Anjani Prasad, MD, Archroma India Pvt. Ltd. impressed upon the need for safe to produce and wear products, efficiently made and provide enhanced value. “Sustainability via safe to ecology and use of efficient production techniques would lead to enhanced value.”
While applauding prudent decision making of the Government, G.S.Singhvi, MD, Hindustan Fibres Ltd acknowledged the Textile Ministry for measures to boost the Industry that includes removing Anti-Dumping Duty, giving impetus to Polyester Manufacturing units, bringing in 100% FDA and Product linked incentive (PLI) in manmade fibre and technical textile with financial outlay of Rs.10683 Cr. under Atmanirbhar Bharat Policy.
He urged the Hon’ble minister, to consider reforms like single GST Rate from Raw material to Fabric, PLI Scheme to apply further, negotiation of Trade agreement with US and EU to reduce duty on Indian textiles and Labour reforms.
