Employment in textiles Sector

The latest Annual Survey of Industries (ASI) indicates that employment in the organized manufacturing sector including textiles has increased as follows:

 

 

With a view to promote investment, production and creating employment in the textile sector, Government has launched several policy initiatives and is implementing schemes for giving thrust to development of textiles.

(i)In order to boost production and employment in knitting and knitwear sector, Government has launched a separate scheme for development of Knitting and Knitwear Sector to boost production in knitting and knitwear cluster at Ludhiana, Kolkata and Tirupur which provide employment to nearly 24 lakh persons.

  (ii)Amended Technology Upgradation Fund Scheme(ATUFS) is being implemented to upgrade technology/machineries of textile industry with onetime capital subsidy for eligible machinery. Segments which have higher employment and export potential such as Garmenting and Technical Textiles are eligible for capital subsidy at the rate of 15% subject to cap of Rs. 30.00 crore. Segments such as weaving for brand new Shuttle-less Looms (including preparatory and knitting), Processing, Jute, Silk and Handlooms shall get subsidy at the rate of 10% subject to a cap of Rs. 20 crore.  Budget provision of Rs.17,822 crore has been approved for seven years from 2015-16 to 2021-22 which will attract investment of Rs.1 lakh crore and generate 35.62 lakh employment in the textile sector by 2022.

 Ministry has also notified the Scheme for Production and Employment Linked Support for Garmenting Units (SPELSGU) under ATUFS to incentivize production and employment generation in the garmenting sector.

(iii). Government has launched a special package of Rs.6000 crore in 2016 to boost investment, employment and exports in the garmenting and made-ups sector with the following components viz., (i) full refund is provided under Remission of State Levies (ROSL) to the exporters for the State level taxes; ii production linked additional incentive of 10% is provided under the Amended Technology Up-gradation Fund Scheme (ATUFS).

(iv). Scheme for Integrated Textile Park (SITP): Government provides 40% subsidy with a celling limit of Rs. 40 crore for setting up textiles parks for infrastructure creation and additional job generation. 59 sanctioned textiles parks are under various stages of implementation, once fully operational it is expected to house about 5909 textile units will generate employment for about 3,61,093 persons and attract investment of over Rs. 26,972 crore.

(v).   With a view to address the skilled manpower requirements of textile sector, Government have been implementing a pan India Integrated Skill Development Scheme (ISDS) from 2010-11 to 2017-18 for providing skill training to manpower in the textile sector. Under the scheme, 11.14 lakh persons were trained out of which 8.43 lakh persons were given placement.

       In continuation, as a part of Government’s focus on skill development and employment generation in the textile sector, Government has approved a new scheme titled “Scheme for Capacity Building in Textile Sector(SCBTS)” for the entire value chain of textile sector, excluding spinning and weaving in the organized sector, to train 10 lakh youth for a period of three years from 2017-18 to 2019-20 at an estimated cost of Rs.1300 crore. The scheme aimed at providing demand driven, placement oriented National Skills Qualifications Framework (NSQF) compliant skilling programmes to incentivize and supplement the efforts of the industry in creating jobs in the organized and related sectors and to provide skilling and skill-upgradation in the traditional sector. The scheme covers handloom, handicraft, jute, silk, technical textile, apparel, garmenting, textile processing and fashion segments. State Governments and the sectoral organisations including Textile Industry and Industry Associations are partnered in taking this programme forward.

(vi). National Handloom Development Programme, Comprehensive Handloom Cluster Development Scheme, Handloom Weaver Comprehensive Welfare Scheme and Yarn Supply Schemes under which financial assistance is provided for raw material purchase, looms and accessories, design innovation, product diversification, infrastructure development, skill upgradation, marketing of handloom products & loans at concessional rate. for enhancing production and boost the textile sector. Under NHDP, financial assistance up toRs.2.00crore per BLC for various interventions such as skill upgradation,HathkarghaSamvardhansahayata, product development, construction of work shed, project management cost, design development setting of commonfacility centreare provided.  Besides, financial assistance upto Rs. 50.00 lakh is also provided for setting up of one dye house at district level. Under the MUDRA Scheme, credit at concessional interest rate of 6% is provided to the handloom weavers. Margin money assistance to a maximum of Rs. 10,000/- per weaver and credit guarantee for a period of 3 years is also provided.

(vii). National Handicrafts Development Programme (NHDP) and Comprehensive Handicraft Cluster Development Schemes aims at holistic development of handicrafts clusters through integrated approach by providing support on design, technology up-gradation, infrastructure development, market support etc.

(viii). PowerTex India: A comprehensive scheme for powerloom sector with components relating to powerloom up-gradation, infrastructure creation, concessional access to credit, etc.

(ix).Silk Samagra – An integrated Scheme for development of silk industry with components of research & development, transfer of technology, seed organization and coordination, market development, quality certification and export.

(x). Jute ICARE for increasing the income of farmers by at least 50% through promotion of certified seeds, better agronomic practices, use of microbial re-using of Jute plant, retting to produce quality of jute, increase productivity and to reduce the cost of jute production for the jute farmers.

(xi).  North East Region Textile Promotion Scheme (NERTPS) for promoting textiles industry in the NER by providing infrastructure, capacity building and marketing support to all segments of textile industry.

(xii).  ROSCTL: With the effect from 07.03.2019, the Govt. has launched a new scheme viz. Rebate of State and Central Taxes and Levies (ROSCTL) on Export of Garments/ Made-ups, in addition to the duty Drawback scheme.