Wednesday, 17 July 2013

An insight of the Textile industry and the Policies Framed

Textile industry remains the second largest employment generating sector after Agriculture for both skilled and unskilled labors in the country. According to a survey, the sector straight away provides employment to over 35 million people within the country. Though, was once unorganized but it completely changed after India economy opened to liberalization. The strong domestic and foreign demand of fiber has enormous helped this sector to flourish. And today, India earns an approx of 30% of its total foreign exchange through textile exports.

The Government has readily prepared a robust model to encourage, promote and produce the Textile and the opportunities availability in the sector. The Export Policies are revised in the budget every five year including Foreign Trade Policies. This also includes the various incentives under focus market scheme and Focus Product Scheme including several others.

Below discussed are various schemes and promotions, brought in effect by the Government if India for textile sector.

  • Other than allowing 100% FDI (Foreign Direct Investment) in textiles under the automatic route. The Government introduced Welfare schemes, under which the Government provides Health and Life insurance coverage to 161.10 million weavers and ancillary workers under the hand loom weaver s comprehensive welfare scheme, while 73000artisans were provided health coverage under the Rajiv Gandhi Shilpi Swasthya Bima Yojana.

  • The E-Marketing platforms recently developed by the Central cottage Industries corporation on India (CCIC), and the Handicraft and Handloom Exports Corporation of India (HHEC) has significantly helped in simplifying marketing issues. And various marketing initiatives are being taken in order to push and promote niche handloom products.

  • Skill Development, A great emphasis has been laid on skill development in 12th Five Year Plan, an integrated skill development scheme was introduced in this Five Year Plan that aims at training 2.675, 000 people within the next 5 years. The scheme would cover all sub sectors of the textiles and apparels, handicrafts, hand looms, jute and Sericulture.

Other than this, The Government has also promoted Credit linkages, Financial Package for waivers of overdues and Textile parks.The sustainable growth this industry has witnessed in decades has tremendously boast and strengthen our economy. To keep it in the lineage the Government and the private sector has great role to play.