PM Mitra parks to boost India's $100 bn textile export goal, says industry

The parks, which are coming up in seven states, are expected to fuel investment once the global slowdown is over

Shine Jacob Chennai
PM Mitra parks to boost India's $100 bn textile export goal, says industry

3 min read Last Updated : Mar 19 2023 | 9:14 PM IST

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The Indian textile industry believes the opening of seven PM Mega Integrated Textile Regions and Apparel (PM Mitra) Parks across the country will help develop the country as a global hub for textile manufacturing and exports. The textile sector is expected to attract major global investment, helping to boost its exports to $100 billion by 2030.
On Friday, the government had announced the setting up of PM MITRA Parks in Tamil Nadu, Telangana, Gujarat, Karnataka, Madhya Pradesh, Uttar Pradesh and Maharashtra. The move has been inspired by the 5F vision of the Centre focussing on farm to fibre to factory to fashion to foreign. “These parks will fuel investment once the global slowdown is over and attract large foreign direct investment as they provide world class infrastructure at a scale,” said Sanjay Kumar Jain of Delhi-based TT Ltd

According to sources, the Central and Tamil Nadu State Governments have identified and proposed to set up a Mega park on about 1,100 acres near E Kumaralingapuram in Virudhunagar district. “The parks will attract major global investment in textiles helping to boost the sector's exports to $100 billion by 2030. With the realignment of the global value chain and focus on friendshoring, India is on the radar of global investors looking for opportunities outside China. A scheme like PM Mitra will hasten the process of decision making by such investors in India's favour,” said A Sakthivel , President of Federation of Indian Export Organisations (FIEO).
A special purpose vehicle owned by the Centre and the State Government will be set up to handle each park. The ministry of textiles will provide financial support in the form of Development Capital Support up to Rs 500 crore per park, while a competitive incentive support (CIS) up to Rs 300 crore per park to the units in PM Mitra Park shall also be provided to incentivise speedy implementation. State governments will provide contiguous and encumbrance-free land parcels of at least 1000 acres of land and will also facilitate provision of all utilities, Reliable Power Supply and Water availability and Waste Water Disposal system, an effective single window clearance as well as a conducive and stable industrial/textile policy.

“The parks will bring much needed boost to scale and integrated manufacturing infrastructure. Global buyers are now looking for large, integrated and compliant facilities to bring more business to India as an apparel sourcing diversification strategy. The TN Mitra park can be visualised with a specific theme like ESG to attract investment from international buyers,” said Prabhu Damodaran, secretary, Indian Texpreneurs Federation (ITF), a textile industry body.
Modern industrial infrastructure facilities for the entire value-chain of the textile industry will also significantly reduce logistics costs and improve competitiveness of textile exports with access to state-of-art technology.

“The parks will attract investment and generate more employment, particularly for women workers. We have also suggested to create an ecosystem to attract MSMEs in Tirupur, plug-and-play facilities, building area to commence from 15,000 sq ft for the benefit of MSMEs, requirement of an additional incentive to setup units in PM Mitra Park, inclusion of PLI-2 scheme to avail the incentives by the units being set up in the project and solar power for the industry and common effluent treatment,” said K M Subramanian, President, Tiruppur Exporters’ Association.

Topics :textile industryExportsEconomic slowdownInvestment

First Published: Mar 19 2023 | 3:20 PM IST

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