The prompt execution of the ambitious initiative, PM Mega Integrated Textile Regions and Apparel (PM MITRA), encompassing the establishment of seven textile parks, is poised to attract significant investments, including foreign direct investment (FDI), while concurrently fostering extensive employment opportunities, according to industry experts.
Prime Minister Narendra Modi, during the inauguration of ‘Bharat Tex 2024,’ a monumental global textile event, shed light on the government’s comprehensive plans to establish PM MITRA parks across various states. Emphasizing the creation of opportunities for the entire textile sector, the parks are strategically located in Tamil Nadu, Telangana, Gujarat, Karnataka, Madhya Pradesh, Uttar Pradesh, and Maharashtra. The envisioned outcome of these parks is a substantial investment of nearly Rs 70,000 crore and the generation of two million job opportunities, contributing to the estimated Rs 12 trillion valuation of the Indian textiles market.
The Union Ministry of Textiles is overseeing the implementation of these projects, with each park having a dedicated special purpose vehicle (SPV) jointly owned by the central and state governments. Mithileshwar Thakur, Secretary General of the Apparel Export Promotion Council (AEPC), emphasized that the PM MITRA parks aim to address longstanding challenges faced by the textiles industry, fostering collaboration across the entire textile value chain in alignment with the PM’s 5F vision.
Thakur highlighted that the PM MITRA parks will create an enabling ecosystem, providing essential utilities, reliable power supply, water availability, wastewater disposal systems, and a streamlined single window clearance for regulatory approvals. Integrating the entire textiles value chain, from spinning and weaving to processing, dyeing, printing, and garmenting, within these parks will result in a significant reduction in logistics costs, making them attractive for both domestic and foreign investments while generating substantial employment opportunities.
To facilitate the implementation, the textiles ministry will offer financial support, providing development capital support of up to Rs 500 crore per park to the SPV. Rakesh Mehra, Chairman of the Confederation of Indian Textile Industry (CITI), lauded the PM MITRA scheme as a pioneering initiative for capacity building and attracting new investments, emphasizing the importance of its swift implementation to meet the industry’s target of doubling the textile base to USD 350 billion by 2030.
According to a recent report by rating agency ICRA, investments in the textile value chain under the Production Linked Incentive (PLI) scheme, PM MITRA parks, and the China Plus One strategy are expected to be key growth drivers. The report underscores that PM MITRA parks offer an opportunity to create an integrated textiles value chain, with Competitive Incentive Support (CIS) of up to Rs 300 crore per park provided to incentivize speedy implementation.
Concurrently, convergence with other Government of India schemes will be facilitated to ensure additional incentives for Master Developers and investor units. State governments involved in the establishment of these parks are expected to provide contiguous and encumbrance-free land parcels, utilities, reliable power supply, water availability, and an effective single window clearance, along with a conducive and stable industrial/textile policy.