2021- A Year of Game Changing Reforms for Ministry of Textiles

India has the unique advantage of the entire value chain for textile production present within the country vis-à-vis other competing nations which have to import fibre, yarn and fabric to meet their requirement for garment production. It has a large market, which is growing rapidly with affordable manpower. The domestic textile and apparel production is approx US$ 140 Bn including US$ 40 Bn of Textiles and Apparel export. The textile and apparel industry contributed 2% in the overall GDP of India in 2019 and 11% to total manufacturing in GVA.

Availability of almost all types of raw materials, existence of total value chain, young demography of India, entrepreneurial mindset of industry leaders, continuous support of Government, technology up gradation, focus on innovation and strong presence of support industries will help this sector grow at a healthy pace in coming decade. Widely referred to as a change agent owing to its transformative powers, this industry alone has the capacity to generate around 70 jobs in garmenting and an average of 30 jobs overall for every INR 1 crore (USD 132,426) invested as compared to 12 jobs created on an average in other industries. With direct and indirect employment of close to 105 million people, this industry is the second largest employment generator in the country, next only to agriculture. More significantly, women constitute 70% of the workforce in garment manufacturing and about 73% in Handloom.

 The growth of India as a manufacturing hub for textiles will depend on the attractiveness of the domestic market and on investments in high-end textile machinery and products in emerging areas like technical textiles, Man Made Fiber (MMF). A hallmark achievement of the Ministry includes, India has establishing a Rs 7000 crores PPE industry in a short span of just three months in post-COVID situation and becoming the second largest producer of PPEs.

Recent key initiatives of the Ministry during the year are as under:

PM MITRA PARKS: Government has approved Setting up of 7 Pradhan Mantri Mega Integrated Textile Region and Apparel (MITRA) Parks with a total outlay of Rs. 4445 Crores in a period of 5 years. World-class Industrial infrastructure would attract cutting age technology/scale and FDI / local investment in the sector. PM MITRA Park will encompass all ‘5F’ components: Farm to Fibre; Fibre to Factory; Factory to Fashion; Fashion to Foreign. PM MITRA Park is envisaged to be located at sites which have inherent strength for Textile Industry to flourish.   PM MITRA Park will offer the opportunity to create an Integrated Textiles Value Chain right from spinning, weaving, processing/dyeing and printing to garment manufacturing etc. at one location and will reduce logistics cost of Industry. It is intended to generate around 1 Lakh direct and 2lakhindirect employment per park.


 Production Linked Incentive (PLI) Scheme for Textiles is specially focused at high value and expanding MMF and Technical Textiles segments of Textiles Value Chain. Incentives worth Rs. 10,683crore will be provided over five years for manufacturing notified products of MMF Apparel, MMF Fabrics and segments/products of Technical Textiles in India. This will give a major push to growing high value MMF segment which will complement the efforts of cotton and other natural fiber-based textiles industry in generating new opportunities for employment and trade. It will help create 50-60 global champion of exports.

RoSCTL scheme and Duty Structure : Government has approved continuation of RoSCTL scheme up to March 2024 to boost export competitiveness of Indian apparel and made-ups. The Government has notified uniform goods and services tax rate at 12 % on MMF, MMF yarn, MMF fabrics and apparel that has addressed the inverted tax structure in the MMF textile value chain. The changed rates will come into effect from 1st January, 2022. This will help the MMF segment grow and emerge as a big job provider in the country.


Technology Upgradation Fund Scheme (TUFS) is a credit linked subsidy scheme intended for modernization and technology up-gradation of the Indian textile industry, promoting ease of doing business, generating employment and promoting exports. The ongoing ATUFS with an allocation of Rs 5151cr has been implemented with focus on facilitating and providing support to MSMEs.

TECHNICAL TEXTILES: The Technical Textiles segment is a new age textile, whose application in several sector of economy, including infrastructure, water, health and hygiene, defense, security, automobiles, aviation will improve the efficiencies in those sectors of economy. Government has also launched a National Technical Textiles Mission for promoting R&D efforts in that sector.

SAMARTH (SKILL DEVELOPMENT & CAPACITY BUILDING): Samarth is a placement oriented programme targeting skill development of unemployed youth in the value chain of textiles for gainful employment in organized sector and skill upgradation of weavers & artisans in traditional sector. So far, a total of 71 textile manufacturers, 10 industry associations, 13 state government agencies and 4 sectoral organizations have been on-boarded under the scheme with an allocated target of 3.45 lakh beneficiaries, after due process of empanelment.

NATURAL FIBERS:  India enjoys a pre-dominant position in availability of natural fibers of textiles.

Silk:  India’s traditional and culture bound domestic market and an amazing diversity of silk garments help the country to achieve a leading position in silk industry. India is the second largest producer of silk next to China. It contributes about 32% of global silk production. Total size of the Indian silk industry is Rs.75000.00 crore(estimated).  The Government has taken a number of steps for promotion of investment, production, exports and employment generation in the sericulture sector across the country.

The central sector scheme “Silk Samagra” provides R & D/ Seed support, technical and financial assistance for enhancing the quality and production of silk.   The main focus of the scheme is to make India Atma nirbhar in production of international grade bivoltine silk and scale up the Automatic Reeling Machine. Brand “Indian Silk” is promoted through Product Development & Diversification to address the global market need.

Cotton: CCI could procure around 26 lakh bales under MSP Operations and about 6 lakh cotton farmers were benefitted by disbursement of Rs.7600 crores directly into their bank account.

Jute: Jute-ICARE (Improved Cultivation and Advanced Retting Exercise) scheme has been implemented for improvement of quality and yield of raw jute production. Jute Raw Material Bank (JRMB) Scheme is for supplying jute raw materials at Mill Gate Price to MSME JDP units for production of jute diversified products,

 Wool: Ministry of Textiles has approved rationalization and continuance of Integrated Wool Development Programme (IWDP) from 2021-22 to 2025-26 with total financial allocation of Rs. 126 Crore.   ‘Wool Processing Scheme’ is for promotion of woolen industry.


  Ministry of Textiles is implementing schemes for development of handlooms, welfare of weavers and for revival and promotion of handloom industry across the country. To promote marketing of handloom products, Handloom Export Promotion Council (HEPC) has been organizing International Fairs and domestic marketing events for the weavers.

 Linking Textiles with Tourism though Crafts Tourism Village is a modern-day concept wherein craft promotion and tourism are being taken up simultaneously.  13 crafts villages have already been identified.

Focusing on Direct market Access to Weavers/Artisans: To provide direct marketing platform to the handicraft artisans/weavers, Ministry of Textiles  is developing  an e-commerce platform through digital India Corporation, Ministry of Electronics and Information Technology.   In the first phase, the artisans/weavers from 205 handicrafts/handlooms clusters are being selected throughout the country for uploading the handicrafts/handlooms products on portal.  Further, the artisans/weavers are being registered on Government E-Market Portal (GeM) also to sell their products directly to the Government Ministries/Departments. So far about 1.50 Lakh weavers have been on-boarded on the GeM portal.

Promotion of Indian Toys: As emphasized by Hon’ble PM in his “Man ki Baat” programme that everyone should “team up for toys” with the focus on the theme of Atma Nirbhar Bharat to promote Indian Toy Industry including handicrafts and handmade toy products.  A National Action Plan for Indian Toy Story has been made with collaboration of 14 Ministries/Departments of Government of India.



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Reforms in The Miniing Sector

Ministry of Mines has amended Mines and Minerals (Development and Regulation) (MMDR) Act, 1957 through the Mines and Minerals (Development and Regulation) Amendment Act, 2021 which has been notified on 28.03.2021 for giving boost to mineral production, improving ease of doing business in the country and increasing contribution of mineral production to Gross Domestic Product (GDP). Some of the major reform brought in this Amendment Act, 2021 are as under:

Removed the distinction between captive and merchant mines.   It allows all captive mines to sell upto 50% of the minerals produced during the year after meeting the requirement of attached plant subject to the payment of additional amount as prescribed under sixth schedule of the MMDR Act. Further, all future auctions will be without any end use restrictions.

Resolved all pending cases under section 10A(2) (b) of the Act.

Statutory clearances to be valid even after expiry or termination of mining lease and shall be transferred to the successful bidder in the auction.

To ensure ease of doing business, restriction on transfer of mineral concessions are removed and now mineral concession can be transferred without any transfer charge.

Additional amount has to be paid by government companies on grant of new lease or extension of lease which will ensure additional revenue to State Government.

Central Government is empowered to conduct auction in cases where the States face challenges in conduct of auction or fail to conduct auction within   prescribed time fixed in consultation with State Government. The revenue from auctions will accrue to State Government.

Empowered the Central Government to issue directions regarding composition and utilization of funds under DMF. Direction to include the MPs/MLs and MLCs in the Governing Council was issued on 23.04.2021.

Simplification of exploration regime – (i) Mineral Blocks for Composite Licence can be auctioned at G4 level of exploration instead of G3 level as per the earlier standard. (ii) Mineral Block for surfacial mineral can be auctioned for grant of Mining Lease at G3 level instead of G2 level. (iii) Private entities may be notified under Section 4(1) of the MMDR Act for conducting exploration.

       This information was given by the Minister of Mines, Coad and Parliamentary Affairs Sh. Pralhad Joshi in a written reply in the Rajya Sabha today.



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