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India may witness boom in technical textile segment as Productivity Linked Investment (PLI) scheme of the government has received tremendous response. Out of the total 61 proposals for investment approved under the PLI scheme, over 25 per cent or 17 proposals are for investing in technical textiles, according to the country’s ministry of textiles.
The Indian government had launched PLI scheme for 102 products in the man-made apparel, man-made fabrics and technical textile segments. The scheme was started by the government with the aim to take over good market share through increasing huge production capacity domestically.
According to industry experts, there is scope for rapid growth of business in non-cotton textiles in the country, with technical textile segment having the most potential for growth. Being a major exporter in the textile sector, Indian companies have enough capability and experience. Currently, China is the main supplier in the field of technical textiles.
According to the ministry, total 13 applications were approved under Part-I of PLI scheme in which each of the investment proposal will not be less than ₹300 crore. Out of these proposals, four proposals are for technical textiles, one each for man-made apparel and man-made fabrics, and the remaining seven for other products.
The four proposals of technical textiles approved in Part-I of the scheme will have an investment of ₹3,600 crore in gestation period and ₹3,829 crore investment in total. The selected companies will have total turnover of ₹35,458 crore and they will receive subsidy of ₹1,236 crore under the scheme. In total, the selected 13 companies of Part-I will invest a total of ₹10,061 crore, while they will invest ₹7,863 crore in gestation period. Their total business would be ₹88,689 crore, while subsidy would be ₹3,392 crore.
According to official information issued by the ministry, a total of 48 proposals with an investment of at least ₹100 crore each were approved under Part-II of the scheme. Of these, 13 proposals are selected for technical textiles, 9 for MMF apparel, 6 for MMF fabrics and 20 for other products.
Under Part-II, a total investment of ₹2,276 crore will be made in 13 proposals of technical textiles, while ₹2,046 crore will be invested in the gestation period of two years. This will result in a total turnover of ₹29,222 crore and subsidy of ₹778 crore. Out of total 48 proposals approved in Part-II, investment of ₹6,991 crore will be made in gestation period and total investment will be ₹9,015 crore. The turnover of these companies would be ₹96,229 crore and subsidy would be ₹2,621 crore.
Thus, under the PLI scheme, the government will give a total subsidy of ₹6,013 crore to total 61 investment proposals in the textile sector. These companies will invest ₹14,855 crore in gestation period and ₹19,077 crore investment in total. This will create 240,134 employment opportunities. The investment under the scheme will generate a business of ₹182,917 crore.
However, the proposed investment in the textile sector will be lower than the target. The government had targeted to generate 7.50 lakh jobs through investment of ₹19,000 crore and a business of ₹3 lakh crore, for which it had set a subsidy of ₹10,683 crore. Thus, against the target, investment is going to be 78 per cent, employment 32 per cent, business 62 per cent and subsidy 56 per cent. The approved proposals include seven from foreign investors from the US, Israel, South Korea, Germany, Sri Lanka and Japan.
Disclaimer: This information has been collected through secondary research and posted by third party therefore textielmarket.in is not responsible for any errors in the same.
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