Schemes in Budget 2021 / MITRA for mega textile parks

• Finance Minister Nirmala Sitharaman proposed a scheme of Mega Investment Textiles Parks (MITRA) while presenting the Budget for 2021-22 in Parliament.

• The scheme aims to enable the textile industry to become globally competitive, attract large investments and boost employment generation.

• Seven mega textile parks will be established over three years as part of the scheme.

• This will create world-class infrastructure with plug-and-play facilities for India to become a global champion of textiles exports. 

• The mega textile parks will have integrated facilities and quick turnaround time for minimising transportation losses, eyeing big-ticket investments in the sector.

• Textiles Minister Smriti Irani said that the announcement on MITRA will be a game changer for the Indian Textiles Industry. 

• Emphasis on state-of-the-art infrastructure through MITRA will give domestic manufacturers a level-playing field in the international textiles market, Irani said. 

• Highlighting that the textiles sector generates employment and contributes significantly to the economy, Sitharaman emphasised upon the need to rationalise duties on raw material inputs to manmade textiles. 

• “We are now bringing nylon chain on par with polyester and other man-made fibres. We are uniformly reducing the BCD (basic customs duty) rates on caprolactam, nylon chips and nylon fibre & yarn to 5 per cent. This will help the textile industry, MSMEs, and exports, too,” Sitharaman said. 

• To benefit farmers, she said the customs duty on cotton is being raised from nil to 10 per cent and on raw silk and silk yarn from 10 per cent to 15 per cent.

• The Centre is implementing Scheme for Integrated Textile Park (SITP) which is demand driven and it provides support for creation of world-class infrastructure facilities for setting up of textile units. So far, 59 textile parks have been sanctioned under the scheme for integrated textile parks, out of which 22 have been completed. 

• The Indian textile sector is the sixth-largest exporter of textiles and apparels in the world. 

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