Sector

Handloom & Textile

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INDIA SCENARIO

  • India’s Textiles Exports were highest ever in FY 2021-22, crossing $44 Bn
  • India is the largest cotton producer (23%) in the world and has the highest area under cotton cultivation (39% of world area). Cotton plays a major role in sustaining the livelihood of an estimated 6.5 Mn cotton farmers.
  • The Indian textile and apparel market size is estimated around $165 Bn in 2022, with domestic market constituting $125 Bn and exports contributing $40 Bn.
  • The market size of the industry is projected to grow at a 10% CAGR to reach $350 Bn by 2030.
  • One of the largest consumers and producers of cotton in the world.
  • Second largest manufacturer of PPE and producer of polyester, silk and fibre in the world
  • Second largest employment provider in India after agriculture

UTTAR PRADESH SCENARIO

  • UP is the 3rd largest manufacturer of fabric in India accounting for ~13% of the production. 
  • Apparel & Textiles industry employs around 1.5 million people in UP 
  • Houses Major Clusters of Handmade Carpets, Chikankari and Silk Sarees in India atAgra, Mirzapur, Lucknow and Bhadohi.
  • UP has ~1.99 lakh handloom weavers and ~5 lakh Powerloom weavers. 
  • The state is well known for its carpets. The state also accounts for ~90% of India’s carpet production.
  • Premier institutes like NIFT Raebareli, Uttar Pradesh Textile Technology Institute, Kanpur and Indian Institute of Apparels Technology, Varanasi

DOMINANT INDUSTRY FORCES

KEY DEVELOPMENT IN THE INDUSTRY

Value Chain Opportunity
(R&D) Base
  • Technical Textile : Technical Textiles with high growth potential include Sports tech, automotive textile, packaging tech and industrial tech
  • Home Textile : State has high potential due to its strong leather base. Top products include bed linen, bath linen and floor textiles
  • Sericulture : Focus on sericulture and silk clusters like Varanasi as its imports account for 7% of India’s total fiber imports
Import Substitution
Opportunity

Potential products include trousers/bibs, dress patterns, shirts, blankets, travelling rugs, etc.

Integrated Textile
Parks (PM MITRA)

Lucknow and Hardoi (1,000 acres) 

Silk Exchange
Project

To be set up in Varanasi to facilitate the ready availability of silk to traders and sari manufacturers at reasonable prices.

POLICIES & SCHEMES

Capital Subsidy : A Capital Subsidy of 25 percent of the investment made on purchase of Plant and Machinery will be reimbursed to the textiles and garmenting units, which generates minimum employment of 50 persons. An additional 10 percent capital subsidy reimbursement will be provided to the units set up in Poorvanchal and Bundelkhand region.
Subsidy for Infrastructure : Subsidy of 50% of the project cost for developing infrastructural amenities for self-use such as (i) Road, (ii) Drainage & Water Supply, (iii) Power Supply (power line, transformer etc.) upto a maximum of Rs 3 crore per unit and a subsidy of 50% of the project cost for establishment of Effluent Treatment Plants (ETPs) and DG Sets, subject to maximum of INR 5 Crore for each unit.
Stamp Duty exemption : Textile & Garmenting units to be set up in the state (except Gautam Budh Nagar district) will be entitled for 100% exemption of stamp duty. In Gautam Budh Nagar district, 75% of stamp duty will be exempted.
Interest Subsidy on Plant & Machinery : Reimbursement of 60% of the annual interest amount paid on loan taken for plant and machinery for a maximum period of 07 years.
Employment generation subsidy : Employment generation subsidy of INR 3,200/- per worker per month will be provided to the mega and super mega garmenting units in all districts except Gautam Budh Nagar and Ghaziabad, for a period of 05 years.
Electricity Duty Exemption : 100% exemption from electricity duty will be given to the new textile and garmenting units for a period of 10 years.
Freight Reimbursement : Upto 75% reimbursement of freight cost from unit to port for 5 years.
Land cost subsidy : Subsidy of 25% of land cost will be reimbursed to investors who buy land directly from  Government agencies. In Gautam Budh Nagar district, this subsidy will be 15% of land cost.

KEY INVESTMENT OPPORTUNITIES

  • PM MITRA Park

    coming up over 1,000 acres in Lucknow and Hardoi - Offers an opportunity to create an integrated textiles value chain right from spinning, weaving, processing/dyeing and printing to garment manufacturing at one location.

  • Fiber Production

    Setting up units for man-made fiber and filament manufacturing.

  • Technical Textiles

    Establishing units to cater to the construction, transport, agriculture, medical, hygiene, automotive, packaging and sporting tech industries

  • Home Textiles

    Setting up units for production of fashion accessories, bed linen, bath linen, floor textiles, carpets, upholstery fabric, etc

  • Carpet manufacturing

    Establishing units for a range of hand-woven and hand-knotted carpets and other floor coverings.

  • Silk clusters

    Establishing research institutes to promote silk production

  • Integrated textile & apparel parks

    Setting up private textile with high automation for spinning, weaving and garmenting units.

  • Garment Manufacturing

    Establishing value chains for the global apparel industry.

  • Multi-brand Retail Businesses

    Through joint ventures

  • Textile R&D Centres

    Setting up design studios and training centers


Nivesh Sarathi Nivesh Mitra