PM MITRA SCHEME IN TEXTILE SECTOR

PM MITRA SCHEME IN TEXTILE SECTOR  I  RACE IAS : Best IAS Coaching institute in Lucknow  I  Current Affairs

 

Main Examination: General Studies-2,3

(Welfare Schemes and Issues and Challenges related to Indian Economy)

Why in News?

  • Recently, the Central Government has decided to set up seven new textile parks in the country under the PM Mitra scheme.

Key Points:

  • By the year 2026-27, one park each will be set up in Tamil Nadu, Telangana, Karnataka, Maharashtra, Gujarat, Madhya Pradesh and Uttar Pradesh.
  • In the budget of the year 2023-24, Rs200 crore was initially allocated for this project.
  • But after the announcement of these parks, the total outlay for the entire project has been fixed at Rs4,445 crore.
  • The project will be executed by a Special Purpose Vehicle in Public Private Partnership mode under the supervision of both the Central and State Governments.
  • An incubation center, common processing house and a common effluent treatment plant and other textile related facilities will be provided in each 'Mitra' park to be built under this scheme.
  • Hostel and housing, logistic park, warehousing, medical, training and skill development facilities will be provided for the workers.
  • Ministry of Textiles will provide financial assistance of up to Rs500 crore per park for development.
  • States identified through challenge route and PM Mitra Park Best ecosystem for textile industry to be collectively present at one place with plug-and-play infrastructure and improve the competitiveness of the textile value chain will provide.
  • By 2030, to achieve economic value of $250 billion in production and $100 billion in exports of textiles, apparel and related products and it is achievable, even if the industry has suffered a small setback in the current year.

About PM Mitra Scheme:

  • Full name of PM MitraYojana is Mega Integrated Textile Region and Apparel Scheme.
  • The scheme is inspired by the 5F vision - Farm to Fiber to Factory to Fashion to Fashion.
  • The scheme has the potential to fulfill the vision of building a self-reliant India and firmly establish India on the global textile map.

Importance of PM Mitra Mega Textile Park:

  • PM Mitra Mega Textile Park will provide state-of-the-art infrastructure for the textile sector.
  • It will be a great example of 'Make in India' and 'Make for the World'.
  • It will reduce logistics cost and strengthen the value chain of the textile sector to become globally competitive.
  • About 20 lakh people are expected to get employment due to the construction of these parks.
  • With the formation of these parks, foreign direct investment will increase in the country.
  • From April 2000 to September 2020, India's textile sector had received foreign direct investment of about Rs 20,468.62 crore (only 0.69% of total foreign investment inflow).
  • This cluster based project will reduce the increasing wastage of textile sector.

Currently India's position in the textile industry sector:

  • Textile sector is one of the important sectors of the Indian economy.
  • This sector accounts for more than 2% of India's total GDP and more than 12% of the manufacturing sector's GDP.
  • The Indian textile sector has a wide range of categories ranging from fiber to readymade garments with varying value propositions.
  • This sector provides maximum employment to the people in India after agriculture.
  • For example, this sector provides direct employment to about 45 million people and 60 million people indirectly in India.
  • Globally, India is the sixth largest exporter of manufactured and non-manufactured garments.
  • The number of employees in India's textile industry is about 4.5 crores, out of which the number of handloom workers is 35.22 lakhs.

Challenges before this sector:

  • According to the Index of Industrial Production, there has been a continuous decline in the production of garments since March 2022.
  • Fabric production fell to 102.3 in October 2022 from 118.5 in March 2022.
  • India's textile industry is greatly affected by losses due to heavy duties imposed by the importing countries.

Schemes of Government of India for this sector:

  • Amended Technology Upgradation Fund Scheme
  • The Ministry of Textiles launched the Technology Upgradation Fund Scheme (TUFS) in 1999 as a credit linked subsidy scheme with the objective of modernizing the Indian textile industry and upgradation of related technology, ease of doing business, employment generation and export promotion. Had started.
  • Integrated Textile Park Scheme
  • This scheme was launched during the 10th five year plan to remove the bottlenecks of the textile sector
  • The first textile park under this scheme was established at Wagaru in Rajasthan
  • SAMARTH Scheme
  • The scheme was launched by the Ministry of MSME during the 12th Five Year Plan with the objective of making the textile sector viable
  • Power-Tex India
  • The scheme was launched to provide new research and development, new markets, branding, subsidies and benefits to workers in powerloom textiles.
  • ReshamSamagraYojana
  • This scheme was launched with the aim of improving the productivity and quality of domestic silk
  • Jute-ICARE
  • Jute- ICARE was launched in the year 2015 for better cultivation and improved retting exercises for jute
  • National Technical Textiles Mission
  • The mission aims to establish India as a global leader in technical textiles by the year 2024.

Suggestions for Textile and Apparel industry:

  • Safe measures should be taken to avoid errors occurring during garment manufacturing and processing.
  • In the matter of import-export of garments, India should implement international quality standards.
  • The production process needs to be monitored efficiently and continuously online to produce good quality fabric.
  • Labels on apparel must be certified by recognized organizations for protecting human health and the environment.
  • It should be seen that all deliveries are meeting the deadline so that the cost of returned goods is minimised.
  • To produce best quality fabric and apparel based on best use of chemicals and dyes. The fabric quality must meet GOTS requirements and various other specified certifications.
  • Maintenance of M/Cs at least once in a month. To ensure that all effluents are treated properly so that environmental pollution is minimized.
  • On-the-job training should extend to the lowest and highest levels of management alike. Only then the organization can move forward.
  • Latest techniques should be adopted in the textile industry.
  • The entire organizational workforce from the lowest to the highest rung equally shares the responsibility and commitment to quality improvement. With increasing competition and growing challenges from Chinese and other South East Asian countries, our apparel export industry needs scientific solutions.
  • The management should be quick and prompt in addressing the legitimate and genuine problems of the supervisors in the textile units. We need more mature leadership rather than unplanned supervision to meet buyer's quality needs.
  • The fear of job loss should be removed and job security should be guaranteed.
  • People should be encouraged to wear more clothes.

Conclusion:

  • Standard norms must be strictly followed for the growth of the Indian textile industry and apparel industry and to maintain its position in today's competitive world market.
  • Production and timely delivery of quality goods to earn reasonable export earnings and to meet the demands of the buyers is the key to success.

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Mains Exam Question:

What is PM MitraYojana? Discuss the major initiatives of the Government of India to address the challenges related to the textile industry.