Source: Textile Review
The Technology Upgradation Fund Scheme (TUFS)
The Technology Upgradation Fund Scheme (TUFS), the "flagship" Scheme of the Ministry of Textiles, was launched on 01.04.1999 with the objective of making funds available to the domestic textile industry for upgrading the technology of existing units and for setting up new units with state-of-the-art technology to enhance their viability and competitiveness in the domestic and international markets. Initially, the Scheme was planned for a five-year period to close on 31.03.2004, and it was twice extended; first up to 31.03.2007 and then further on to 31.03.2012. The TUF Scheme is renamed as Modified Technology Upgradation Fund Scheme. Till the end of 31st March 2009, ₹64,530 crores have been disbursed to the benefit of 25,248 units, of which 7,420 are Non-Small Scale Industries and 17,828 are Small Scale Industries.
Indian Textile Industry's Impact and Significance
The Indian textiles, renowned for their fineness and captivating colors for over 5000 years, have attracted connoisseurs from all parts of the world. They bear the imprint of the fine craftsmanship of the Indian weaver, generation down the centuries. The Indian textile industry, with a long and rich history, has had a massive impact on the Indian as well as the world textile market and economy.
The Indian textiles sector contributes about 14 percent to industrial production, 4 percent to the GDP, and 17 percent to the country's export earnings. It provides direct employment to over 35 million people. As the second-largest provider of employment after agriculture, the textile sector has a direct link with the rural economy and the performance of major fiber crops and crafts such as cotton, wool, silk, handicrafts, and handlooms, which employ millions of farmers and craftspeople in rural and semi-urban areas. It has been estimated that one out of every six households in the country depends directly or indirectly on this sector.
Originally Published in Textile Review, March-2011
About the Author
Dr. K. Veerakumar is an Assistant Professor-III, Department of Commerce and Management Studies, SASTRA University, SRC, Kumbakonam, Tamilnadu.
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