The government announced a debt restructuring package of Rs.35, 000 crores during May 2012 which has enabled the industry to manage its financial crisis. The production cutback in China and favourable domestic and international market conditions gave a new lease of life to the textile industry from the middle of 2012 and therefore, the industry is on a revival path.  

Mr. S. Dinakaran, Chairman, The Southern India Mills’ Association (SIMA) has expressed his gratitude and thanks to the Hon’ble Union Finance Minister and the UPA Government for favourably considering the various pleas made by the Association and addressing the various issues and extending several schemes / incentives in the 12th Five Year Plan period to make the industry to achieve a sustained growth rate.

Continuation of Technology Upgradation Fund Scheme (TUF Scheme) and Scheme for Integrated Textile Parks (SITP) to the 12th Five Year Plan period, zero excise duty on branded readymade garments and made ups, reduction in customs duty on the imported textile machinery and parts from 7.5% to 5%, increased grant of Rs.10 crores to the textile parks under SITP, investment allowance of 15% to manufacturing companies investing more than Rs.100 crore in plant and machinery during the period 1st April 2013 to 31st March 2015 are the major welcoming features of the Budget to the textile industry, said Mr. S. Dinakaran.

SIMA chief has stated that the Technology Upgradation Fund Scheme, a blue chip programme of the Ministry of Textiles which is in vogue from 1st April 1999, made the industry to attract over Rs.2.3 lakh crores of investments in this industry and today the industry has become globally competitive. 

He has added that the extension of the scheme in the 12th plan with an envisaged investment of Rs.1.51 lakh crores would enable the industry to improve its export performance substantially apart from fully meeting the clothing requirements of the entire Nation.  He has thanked the Hon’ble Finance Minister for allocating Rs.2400 crores for the financial year 2013-14 for the TUF Scheme.

Yet another blue chip programme of the Ministry of Textiles is the Scheme for Integrated Textile Parks (SITP), which has attracted investments in 42 parks across the Nation and another 21 parks have been recently approved. The various stakeholders of the industry had proposed several changes in the scheme including a major thrust for the power loom sector and textile processing which are the weakest links in the entire textile value chain.