Govt proposes handloom mega clusters in W Bengal, TN

The government today proposed to add one handloom mega cluster each in West Bengal and Tamil Nadu and a powerloom cluster in Rajasthan giving a boost to the embattled textile sector.

"This would help preserve the magnificent textile tradition in West Bengal and Tamil Nadu and generate thousands of jobs in Rajasthan," Finance Minister Pranab Mukherjee said in his Budget for 2009-10 in the Parliament.

India's textile and clothing exports dipped by about two per cent in 2008-09 to around $22 billion due to the global slump in demand.

He also proposed to add new mega clusters for carpets in Srinagar in Jammu and Kashmir and Mirzapur in Uttar Pradesh.

Two handloom mega clusters at Varanasi and Sibsagar and two mega powerloom clusters at Erode and Bhiwandi were approved in the last Budget that are under successful implementation, the Minister said.

India's textile and clothing industry contributes four per cent to Gross Domestic Product, 14 per cent in industrial production and 12 per cent in export earnings.