TEXTILES
INDIA LANDSCAPE
National Strategic Priority
- India is among the world's largest producers of textiles and apparel with 4.6% share of the global trade in textiles and apparel
- India is the 3rd largest exporter of Textiles & Apparel globally
- India is set to achieve USD 250 bn textiles production by 2030
- India is set to achieve USD 100 bn textiles exports by 2030
- Country expected to grow at 10% CAGR to reach USD 350 bn by 2030
- Production Linked Incentive (PLI) Scheme for Textilewith an Outlay of USD 1.2 bn to promote production of MMF Apparel, MMF Fabrics and Products of Technical Textiles in the country
Sector Performance at the National Level
- India is 2nd largest producers of cotton.
- India is one of the largest producers of jute in the world.
- India is 2nd largest consumer of cotton in the world.
- India is also the 2nd largest producer of silk in the world and 95% of the world's hand-woven fabric comes from India.
- Second largest manufacturer of PPE and producer of polyester, silk and fibre in the world
- India holds 4% share of the global trade in textiles and apparel. The share of Textiles and apparel in overall export basket of India was 10.33% during 2021-22
- The domestic apparel & textile industry in India contributes approx. 2.3 % to the country's GDP, 13% to industrial production and 12% to exports
- The textiles and apparel industry in India is the 2nd largest employer in the country providing direct employment to 45 mn people and 100 mn people in allied industries
- India is the 5th largest producer of technical textiles in the whole world with a market size of nearly USD 22 bn
Rajasthan Landscape
Sector Performance:
- Textile sector output is USD 5.6 bn in FY 2022
- Textile exports touched USD 1.3 bn in FY 2022
- No. of textile factories ~1,725 (ASI: 2021-22)
- The textile industry is a major employer in Rajasthan, providing direct and indirect jobs to large number of people
Rajasthan: Value Proposition for Textiles Investors
- 100% FDI allowed under automatic route in the textile and apparel
- Presence of complete value chain from fiber to fashion
- Rajasthan is the 4th largest cotton producing state in the country with ~ 27.12 (lakh bales) in FY 2023
- Rajasthan is the largest producer of polyester viscose suiting, polyester viscos yarn, synthetic suiting material and wool
- Rajasthan leads by a significant margin, making it the largest wool-producing state in the country with a share of 46%
- The state is also home to world famous textiles techniques - Bandhani, Leheriya, Kota Doriya and Appiqu
- Textile Parks and Industrial Estates: Rajasthan has established several textile parks and industrial estates that provide common facilities, testing labs, and research centers. These infrastructural investments help boost industry growth, efficiency, and competitiveness. The state has around three (3) Completed Parks under SITP Scheme: Next Gen Textile Park Pvt Ltd - Pali, Kishangarh Hi-Tech Textile Weaving Park - Ajmer, Jaipur Integrated Texcraft Park - Jaipur
- 4 well-developed textile hubs present in Bhilwara, Jaipur, Pali and Balotra
- New textile zones are coming up at Bhilwara and Jodhpur. 415+ well developed industrial areas with 10K hectares of industrial land available (#4 in India)
All major locations in the state are well connected to domestic and export markets through all modes.
- Rajasthan provides access to around 40% of India's market in the neighboring states and also serve as an indispensable medium of transport between North-Indian states and the ports on the Western coastline of India.
- Rajasthan has 3rd Largest network of national highways with 20 major National Highways, 2nd largest rail network in India, providing easy access to major ports such as Mundra Port and JNPT, nine Inland Container Depots, one Air Cargo Complex as well as seven airports with direct international and national connectivity.
- Further, over 58% of State's area within Delhi Mumbai Industrial Corridor (DMIC).
- Universities:There are total 88 universities, out of which 53 private universities and 28 State funded universities and 7 other universities.
- Central Government Institutes: around 15 institutes such as Central Sheep & Wool Research Institute, etc.
- Technical Institutes: The state is home to numerous technical institutes, including prestigious ones like the Indian Institute of Technology (IIT) Jodhpur and Indian Institute of Management, Udaipur, Indian Institute of Information Technology (IIIT) - Kota
- Highly skilled young talent emerging from institutes such as NIFT Jodhpur, Indian Institute of Crafts & Design (IICD) - Jaipur, Indian Institute of Handloom Technology (IIHT), Jodhpur,
- Availability of Manpower - Pool of a large young trained workforce with 62% of Indian population in the working age group of 15 to 59 years
- Support offered under schemes available for skilling, and infrastructure and technological development.
Policies & Incentives
Rajasthan Investment Promotion Scheme (RIPS) 2024
Asset Creation Incentives (ACI)
- Capital subsidy -13-28% over 10 years, OR
- Turnover linked incentives (TLI) -1.20% - 2.0% for 10 years, OR
- Investment subsidy (net SGST reimbursement) up to 75% for 7 years
Exemptions
- 100% exemption on electricity duty for 7 years
- 100% stamp duty and conversion charge exemption
- 100% exemption in land tax
Special incentives
- Employment booster -10% - 15% on chosen ACI
- Additional incentives: Green incentives, Freight subsidy, Cluster incentives, Training and Skilling incentive
Additional incentives
(For manufacturing thrust sectors)
- 10% thrust booster on top of ACI chosen, OR
- 25% Sunrise booster on top of ACI chosen, OR
- 5% interest subsidy for 5 years, OR
- 20% anchor booster on top of ACI chosen to first 3 units in a region / sector
- Policy allows phasing of investment without loss in benefits
- Additional flexibility for investors to design own ACI mix through customized packages for investment over INR 500 crore. In case of investments greater than INR 1000 crore. and greater than 800 employment generation, the State reserves the right to grant customisation on a higher NPV of the Asset Creation Incentive up to 20% of the NPV of the chosen Asset Creation Incentive as part of the manufacturing/ services standard package on a case-to-case basis.
Rajasthan Micro, Small and Medium Enterprises (Facilitation of Establishment and Operation) Act, 2019
- Exemption from Approvals: MSMEs are exempt from obtaining certain approvals and inspections required under various state laws for 5 years.
- Support for Inclusive Growth: The Act aims to promote inclusive economic growth and employment generation by supporting MSMEs.
Ease of Doing Business
- RajNivesh portal provides a single point, online interface and a time-bound clearance system by acting as a one-stop information / registration / approval / tracking centre for clearances & approvals
- The platform integrates over 120+ services across 14 departments, emphasizing the state's commitment to the implementation of investor-friendly policies that enhance ease of doing business and promote sustainable development policies that enhance ease of doing business and promote sustainable development.
- Automated Processes: Automated systems for services like registration, licensing, and bill payments.
- Reduced Compliance Burden: Simplified labor laws, environmental clearances, and other regulatory procedures.
- Time-Bound Services: Guaranteed timelines for services, ensuring prompt delivery.
- Dedicated Teams: Specialised teams for investor support, handholding, and facilitation.
Opportunities
Raw materials and yarns
- Cotton yarn
- Polyester fiber / filament
- Viscose fiber
Textile manufacturing and processing
- Knitting and weaving units
- Textile processing
- Textile machinery and components
- Textile Research and Development
Specialized textiles
- Textile and apparel exports
- AgroTech (agricultural textiles)
- GeoTech (geotextiles)
- ProTech (protective textiles)
- MediTech (medical textiles)
- PackTech (Packaging textiles)
- HomTech (Home textiles)