Textiles Industry achieves 16% growth rate

13 Aug '08

5 min read

17,043 applications had been received involving, a project cost of Rs. 1,21,396 crores and 16,911 applications have been sanctioned at an estimated cost of Rs. 1,16,981.

The Minister said that the textiles sector has witnessed a spurt in investments during the last four years. The main engine of investment has been the Technology Upgradation Fund Scheme (TUFS).

The Total investment during 1999-2007 has been Rs. 1,21, 396 crore ,of which the Investment during 2004-2007 was Rs. 1,01,481 crore. It is expected to touch Rs. 1,50,600 crore by 2012. This enhanced investment will generate 17.37 million jobs.

Shri Vaghela said that, UPA Government gave emphasis to the development of infrastructure at potential textiles growth areas and launched the Scheme for Integrated Textile Parks (SITP) which aims to strengthen infrastructural facilities in potential textiles growth areas.

40 Integrated Textile Parks had been sanctioned under the SITP. These Parks when operationalised, will attract an investment of Rs. 21,502 crore, create employment (direct and indirect) for 5.75 lakh workers and produce goods worth Rs. 38,115 crore annually.

The Minister said that in recent years, the problems of jute industry had multiplied and it was struggling hard for survival.

The problems were high labour cost, instability in the production of raw jute, demand erosion, obsolescence of machinery, uneconomic working and competition from synthetic sector. All these factors/handicaps had led to large scale sickness in the industry.

This dismal scenario called for an urgent action plan to remedy the situation The UPA Government gave a new impetus to revival and development of Jute Sector. The National Common Minimum Programme (NCMP) of UPA Government attaches special importance to the jute sector.

The aim of the Government is to develop new generation, cost competitive and performance-effective jute and jute blended products through up gradation of spinning and weaving technology to achieve higher rate of product improvement, modernisation and diversification of product mix towards value added items.

Shri Vaghela said that as part of these measures the Government substantially enhanced the Minimum Support Price of raw jute and imparted a renewed vigour to the Minimum Support Price Operations carried by the Jute Corporation of India (JCI).

The MSP for TD-5 grade of raw jute was increased from Rs.1,000 per quintal for the jute season 2006-07 (July-June), to Rs. 1,055 per quintal for the jute season 2007-08, and has been pegged at Rs. 1,250 per quintal for the Jute season 2008-09, registering an increase of 18.5%.

The Textiles Minister said that the Jute Packaging Material (Compulsory Use in Packing Commodities) Act, 1987, continuous to be implemented to ensure the compulsory 100% packaging of sugar and food grains in jute bags. This measure had helped in increasing the internal consumption of Jute by 11%.

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Press Information Bureau Government of India

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