CITI praises Finance Minister's PLI scheme for textiles
The Confederation of Indian Textile Industry has praised Union Finance Minister Nirmala Sitharaman for launching a Production Linked Investment scheme for the man-made fibre and technical textile sectors.
“PLI scheme is extended for 10 key specific sectors, of which textile is one of the sectors and has been allocated Rs 10,683 crore [$1.6 billion] of the total estimated outlay of Rs. 1.46 lakh crore, mainly for MMF and technical textile segment,” said CITI chairman T Rajkumar in a statement, ET Bureau reported.
The scheme is designed to boost India's share in the global textiles market in the MMF and technical textiles segments. The PLI scheme will promote building new facilities for the industry and attract greenfield and brownfield investments, according to CITI.
Rajkumar said that the scheme comes at a pertinent time when India’s economy is in a phase of recovery.
“Covid-19 pandemic has impacted the Indian economy in an unprecedented way,” he said. “The Indian textile sector is one the worst hit sectors due to weak domestic and international demands. Though, this sector has managed to convert the Covid-19 crisis into an opportunity, yet many textile companies are still struggling to find their way back to normalcy.”
The MMF and technical textiles sectors do still face some barriers to increasing international trade due to the high cost of raw materials and high tariff barriers. Neighbouring countries also offer cheaper alternatives, increasing competition in the market.
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