Budget 2021: FM rolls out scheme to set up seven mega textile parks in India
Nirmala Sitharaman also announced the launch of the Mega Investment Textiles Parks (MITRA) scheme to make the textile industry globally competitive, attract large investments, and boost employment generation.
Union Finance Minister Nirmala Sitharaman on Monday announced a slew of measures for the Indian textile sector, which is the sixth-largest exporter of textiles and apparel in the world. The sector also contributes significantly to employment generation.
Sitharaman said that in a bid to rationalise duties on raw material inputs to man-made textiles, the government is now bringing nylon chain on par with polyester and other man-made fibers.
She said, "We are uniformly reducing the BCD rates on caprolactam, nylon chips, and nylon fiber and yarn to 5 percent. This will help the textile industry, MSMEs, and exports, too."
The Finance Minister also announced the launch of Mega Investment Textiles Parks (MITRA) in addition to the Production-Linked Incentive (PLI) scheme. This scheme will enable the textile industry to become globally competitive, attract large investments, and boost employment generation within the sector.
"This will create a world-class infrastructure with plug-and-play facilities to enable create global champions in exports. Seven textile parks will be established over three years," Sitharaman said.
Within the segment, she also proposed the reduction of customs duty for raw materials such as Caprolactam, Nylon Chips, and Nylon fibre and yarn from 7.5 to 5 percent.
The government committed Rs 1.97 lakh crore under the PLI scheme to ensure that domestic manufacturers "become an integral part of global supply chains, possess core competence and cutting-edge technology."
The scheme has been announced for 13 sectors and will spread across over a period of five years starting from 2021-2022.
"This initiative will help bring scale and size in key sectors, create and nurture global champions, and provide jobs to our youth," Sitharaman said.
The finance minister said the government has taken a number of steps to support the MSME sector in this year's Budget. It has also provided Rs 15,700 crore to the sector, which is more than double of this year’s budget estimates.
For YourStory's multimedia coverage of Budget 2021, visit budget.yourstory.com
Edited by Megha Reddy