Govt to set up Mega Textile Parks in challenge mode

New Delhi: The government on Sunday announced the setting up of Mega Textile Parks in challenge mode with a focus on integrated infrastructure and value addition, among a raft of reforms, including a five-pronged integrated policy framework, to provide a shot in the arm to India's employment-intensive textile sector.

The proposed establishment of new Mega Textile Parks will attract investments, improve compliance and traceability, and create integrated hubs for scale, quality control and exports.

It will also support growth in technical textiles, a high-potential segment critical for industrial, medical, defence and infrastructure applications.

To strengthen khadi, handloom and handicrafts, the Mahatma Gandhi Gram Swaraj Initiative will be launched. The initiative will focus on global market linkage, branding, streamlined training, skilling, quality improvement and process modernisation. It will benefit weavers, village industries, rural youth and support the One District One Product (ODOP) initiative.

In a major boost to exports of textiles, leather and marine products, the Budget announced the Extension of the export obligation period from 6 months to 12 months for exporters of textile garments, leather garments, leather or synthetic footwear and other leather products manufactured using duty-free imported inputs.

This measure will provide greater operational flexibility, ease of compliance and improved working capital management for textile exporters, currently grappling with 50 per cent tariffs on Indian goods imposed by the US, India's largest export market.

In her budget speech, Union Finance Minister Nirmala Sitharaman said, "For the labour-intensive Textile Sector, I propose an Integrated Programme with 5 sub-parts".