In March 2020, the government of India debuted its production-linked incentive program. India is to be promoted as a manufacturing and export center through this scheme. By removing barriers between regions & creating conducive economic conditions for the industrial sector, it aims to foster a sustainable economic climate. One of the beneficiaries of this scheme will be the textile industry in India. Taxes on raw materials have been reduced by the government, thus reducing the burden on owners. To establish the appearance of being the textile hub, India is introducing this scheme.
In addition to creating three lakh jobs, the government is also planning about Rs.19000 crores of investment with the PLI Scheme. In textile industries, employment is expected to rise, as more people can profit from this scheme. Tax deductions on raw materials are the main highlight. As a result, the skills of artisans and factory workers would be enhanced, so that the level of products would be taken to a higher level. Finally, the barrier between international trades has been pulled down after years of effort. There will be an increase in production capacity in the upcoming years, which will increase the number of better-paying jobs.
Companies will invest more and more, as incentives are developed. Those changes will make it easier for everyone to earn a nice sum of money. A budget of Rs. 10,683 crores has been allocated to man-made fiber (MMF) and another segment of textile. The amount of positivity that can be created by investing in the people is a signal that more people will be drawn to the textile industry. In this way, MMF will have an advantage over its competitors. The Micro, Small, and Medium Enterprises (MSMEs) make-up most of the stake in the textile industry and feel quite helpful with the PLI scheme.
By investing in the textile industry, traders and consumers all over the world will gain access to standard products because production capabilities will be improved and workers will be skilled. In a few years, we will be the biggest exporters of textiles in the world, and with this PLI scheme, that path is clearer than ever before. A greater quality of raw material will ultimately increase the quality of the finished product. The talents of our artists will be recognized internationally, since we already have a reputation for our ethnic fabrics. Foreign countries are seeing India now as a hub for industrial sectors. And the textile products will be exported at a tremendous rate as the demand will increase.
With the PLI scheme, we want to integrate the skills of our artists, which means there would be an impact on the textile industry. There would also be an increase in manpower, and this would lead to employment. This is significant relief after the Coronavirus. During widespread job losses during pandemics, the textile industry usually springs-up as a source of jobs. There will be 35 million new jobs created in the textile industry of India, a number unmatched by any other industry.
By investing in the textile industry, traders and consumers all over the world will gain access to standard products because production capabilities will be improved and workers will be skilled
There are two types of investments with a different perspectives of incentive formulation. Those who will invest at least Rs.300 crore in the plant, machinery, equipment, and civil works, and products of technical textiles are eligible to apply for participation in the first part of the scheme. On the other side, enterprises willing to invest a minimum of Rs.100 crore to be eligible to apply for participation in this part of the scheme.
The Indian textile industry will reach $300 billion by the year 2030. Exports will also rise and the graph will go up. Tax cuts and transparency will create this opportunity. Textiles will become a more popular industry when growth prospects become more favorable. The growth rate of the textile industry across India was estimated to be 8.7 percent from 2015 to 2020. These numbers are surely going to hike in the upcoming decade.
PLI scheme provides help to build-up industries from the core, and the textile sector is one of its beneficiaries. The focus will be on improving quality and increasing employment, as well as investing more. This will lead to India gaining a better position on the international market. This kind of scheme boosts the confidence of both business owners and also employees, and it creates a mountain of opportunities.