TEXTILE SECTOR

Advantage Jharkhand

Textile Sector -Indian Scenario

Textile Sector-Jharkhand Scenario

Policy Interventions

Opportunity Assessment

AdvantageJharkhand

Advantage Jharkhand

[1] World Bank Report on Assessment of State Implementation of Business Reforms [5] CAGR during 2004-05 to 2014-15[2] Indian Labour Journal -2015 [6] Source: FDI Intelligence Survey[3] SWAN: State wide Area Network; CSC: Common Service Centers [7] World Bank Report[4] GSDP – Gross State Domestic Product

stü Ranked 1 in Labor reforms and [1]inspection related compliances in India

ü Endowed with 40% of India’s mineral wealth. Leading producer of steel, coal,

stmica and copper in India (1 rank in Iron ore, coal, Uranium, Mica)

ü Man days lost due to industrial strife lowest in India & Long history of

[2]industrial harmony

stü 1 in country to have SWAN under NeGP [3] and CSC in rural areas

üfastest in Eastern India

[4]10.5% GSDP growth rate - Second [5]

thü Ranked 5 Foreign Direct Investment [6](FDI destination in India

thü Ranked 7 in Ease of Doing Business in India with an evaluation score of 96.57%

st1nd2

5th

th7

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InvestmentClimate

Strong PolicyFramework

Huge DemandSupply Gap

Availability ofResources

EstablishedInfrastructure

Robust Infrastructure

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Textile Sector- Indian Scenario

Robust Demand

• Increased penetration of organized retail, favorable demographics & rising income levels to drive textile demand

• Growth in building & construction will continue to drive demand for non – clothing textile

• 100% FDI (automatic route) is allowed in the Indian textile sector

• Free Trade with ASEAN countries & proposed agreement with European Union will boost growth

Policy Support

• Huge investments are being made by Government under scheme for Integrated Textile Parks and Technology Upgradation Fund Scheme to encourage more private equity and to train workforce

Increased Investments

• Abundant availability of raw materials such as cotton, wool, silk & jute

• India enjoys a comparative advantage in terms of skilled manpower & in cost of production relative to major textile producer

Competitive Advantage

Advantage India

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Textile Sector- Indian Scenario

Evolution of Indian Textile Sector

1854 – 1900

1901-1950

1951 – 2000

2000 – 2014

2014 Onwards

The first cotton textile mill of Mumbai was established in 1854

The first cotton mill of Ahmedabad was found in 1861; it emerged as a rival centre to Mumbai

Number of mills increased from 178 in 1901 to 417 in 1945

Out of 423 textile mills of the undivided India, India received 409 after partition & the remaining 14 went to Pakistan

In 1999, TUFS was set up to provide easy access to capital for technology upgradation

Technology Mission on Cotton was launched to address issues related to low productivity & infrastructure

In 2000, National Textile Policy was announced for the overall development of the textile & apparel industry

Scheme for Integrated Textile Park (SITP) was implemented to facilitate setting up of textile units with appropriate support infrastructure

After MFA cotton prices are aligned with global prices

Technical textile industry will be a new growth avenue

Free Trade Agreement with ASEAN countries & proposed agreement with EU under discussion

Restructured Technology Upgradation Fund Scheme (TUFS) was launched attracting a subsidy cap of USD 420.65 Million

Make in India campaign was launched to attract manufacturers and FDI

Technology Mission for Technical Textile has been continued

Under Union Budget 2015 – 16, Government of India has allocated around USD 584.49 million for textile industry. Major focus of this budget is to attract the manufacturers, technology up gradation, integrated textile parks etc

Measure were also announced to be taken to foster faster clearance of import and export cargo

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Textile Sector- Indian Scenario Growth Indicators

Ø Textile plays a major role in the Indian economy:

ü It contributes 14% to industrial production and 4% to GDP

ü With over 45 million people, the industry is one of the largest source of employment generation in the industry

ü The industry accounts for nearly 13% of total exports

Ø The size of India’s textile market in 2014 was USD 99.0 billion which is expected to touch USD 226 billion market by 2023 at a CAGR of 8.7% between 2009 – 23 E

India's textile market size (USD billion)

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Textile Sector- Indian ScenarioExport Market Share

• In 2014, textile had a share of 60% of the export market; apparels contributed the remaining 40%

• To improve technical skills in apparel industry Government established 75 apparel training and design centres across India

• National Institute of Fashion Technologies played pioneering role in growth of apparel industry & exports

• To promote apparel exports 12 locations have been approved by the Government to set up apparel parks for exports

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Textile Sector – Jharkhand Scenario

Silk Production:The backbone of

Jharkhand’sTextile

Industry

Textile Sector in the State of Jharkhand primarily thrives on Tasar silk and its products

Jharkhand is known for its Tasar silk variety across India and with the growing impetus on exports

Jharkhand has made marching strides in developing capacity, improving production & enhancing quality of Tasar silkr

Jharkhand had a share of 62% of Tasar silk production

Jharkhand is producing nearly 1200 MT of tasar silk

Jharkhand has blessed with immense natural advantage of rearing wild tasar silk

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Textile Sector – Jharkhand Scenario Tasar Rearing, Reeling & Weaving Centres

Jharkhand had a decadal share of more than 40% of Tasar silk production for the cumulative period from 2004 to 2014

Tasar Silkworm Rearing Areas Reeling & Weaving Areas

Tasar SilkwormRearing Areas

Singhbhum, Dumka, Giridh, Hazaribagh, Ranchi, Palamau &

Dhanbad

Reeling & Weaving Areas

Kharsawa (Saraikela), Chaibasa, Puraini &

Katoria

Product District

Textile SectorOpportunity Assessment

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Advantage:

• Abundant raw material and silk

• Jharcraft – renowned brand in India

• Presence of National Institute of Fashion Design (NIFD) and some other reputed organization

• For development tassar silk, training centers being setup in collaboration with NIFT, Kolkata.

• Presence of good number of quality handloom weavers and looms.

• Adequate skilled man power reasonably priced.

Investment opportunities:Textile and Apparel Park at Irba, Ranchi

Silk Park at Irba, Ranchi

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Policy Interventions Jharkhand Textile, Apparel, Footwear Policy 2016

i. To establish the textile and garment industry of Jharkhand, as a producer of internationally competitive value added products thereby maintaining dominant presence in the growing domestic and international market and contributing to the sustainable employment and economic growth of the State

ii. To reinforce the value chain of the textile industry across the State through capital infusion, technology transfer, skill up-gradation and handholding

Jharkhand Textile, Apparel, Footwear Policy 2016

In addition to the incentives provided by Government of India, the units shall also be eligible for following incentives offered by the State Government:

Capital Incentive Subsidy (CIS)

of 20% with an upper cap of

Rs 50 Cr

Interest Subsidy @7% per annum or 50% of Interest rate per annum

Incentive on VAT100% NET VAT for

7 years 40% next 3 years

Stamp duty and registration fee

100% reimbursement

Quality Certification@ 50% of the

expenditure incurred up to maximum of

Rs. 10.00 lakh.

Patent Registration50% of the

expenditure incurred, up to a maximum of

Rs. 10 lakh

Cluster Development 15% of the grant

released by Government of India shall be offered

by states.

Power Tariffreimbursement of

50% of power tariff for 7 years

Export Subsidy As specified in

Jharkhand Export Policy 2015

Skill Development

One-time support of Rs. 13,000 or

actual cost

Other exemptionsMandi fee

exemption, electricity duty, Land allotment

Vision

Establishment of new Textile/Apparel/Footwear Parks

Capital Investment Subsidy

50% of the project cost or Rs 40 crore, as per Industrial Park Policy

Stamp Duty Exemption

50% stamp duty to the developer

Export Exhibition financial

assistance of Rs. 20 crore

Stamp duty and registration fee

100% reimbursement

Contact detailsMr. Sunil Kumar Barnwal IAS Secretary,Department of Industries, Mines and Geology, 3rd Floor, Nepal House, Doranda Ranchi, Jharkhand- 834002Phone: 0651-2490746Fax: 0651-2491587e-mail: sec-ind-jhr@nic.in

Contact detailsMr. Ravi Kumar, IASDirector,Directorate of Industries,3rd Floor, Nepal House, DorandaRanchi, Jharkhand - 834002Phone: 0651-2491844Fax: 0651-2491884e-mail: jhr-doi@nic.inFax: 0651-2491884email: jhr-doi@nic.inWebsite: www.jharkhandindustry.gov.in

www.advantage.jharkhand.gov.inHelpline: 0651-6556666

www.momentumjharkhand.com