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Textiles & Jute Industry REPORT OF THE WORKING GROUP ON TEXTILES & JUTE INDUSTRY FOR THE ELEVENTH FIVE YEAR PLAN (2007-2012) GOVERNMENT OF INDIA MINISTRY OF TEXTILES P R E F A C E The textile industry, undoubtedly, one of the most important segments of the Indian economy is on the threshold of the exponential growth process. The factors like buoyant domestic economy, conducive policy environment and elimination of quotas in the international market are fueling its growth raising expectation of an unprecedented growth level. 2. Economic planning is an integral part of the development of any industry. The textile industry at this juncture needs an ‘approach’ which is based on ‘out of box thinking’ for addressing the issues which might hamper its growth. 3. The Working Group while drawing up its plan for the textile industry has critically examined the SWOT analysis of this industry; had extensive interactions with all the major segments of the industry to obtain their views and has taken into consideration the recommendations of the various industry specific Sub-Groups. 4. The strategy suggested to facilitate textile industry to grow at 16 percent in value terms and reach the level of US$ 115 billion by the terminal year of the Eleventh Plan interalia include – • Continuation of the schemes to consolidate and provide competitive edge to our inherent strength in wide and diverse raw material base of cotton, man-made, silk, wool and jute. • Facilitate the modernisation and technological upgradation of the different segments of the industry to make it internationally competitive. • Address the problem of infrastructure bottlenecks by suggesting continuation of the textile specific infrastructure schemes. • To suggest schemes / policies for meeting the demand / supply gap in the critical inputs like textile machinery and human resources which have the capacity to hamper the growth of the industry. • Labour law reforms to attract investment in large size units. • Liberalise procedures to attract Foreign Direct Investment (FDI) in specific areas of textile industry needing FDI to bridge the gap between domestic investment and required investment. • Brand promotion and support for quality design to increase the value addition of the industry. 5. The decade 2006-2015 is the decade of manufacturing for India. The National Manufacturing Competitive Council (NMCC) has emphasized on the need for focused attention to the specified sectors of the manufacturing which are labour intensive and also enjoy competitive advantage. The textile and clothing industry is identified as one such sector. The Working Group has suggested a plan of action including higher plan outlay to enable this industry to realize its full potential during this Plan period. 6. The implementation of the strategies proposed in this report would unleash the investment to the extent of Rs.1,50,600 crore and lead to speedy development of the textiles and jute sector resulting in achieving the desired objectives and targets. (A. K. SINGH) Secretary, Ministry of Textiles & Chairman of the Working Group New Delhi: 1st December 2006. ACKNOWLEDGEMENT The Working Group appreciates the contribution and efforts made by the Chairpersons and members of the various Sub- Group and members of the Working Group. The contribution of various industry associations particularly Confederation of Indian Textile Industry (CITI), South India Mills Association (SIMA) and Association of Synthetic Fibre Industry (ASFI) is also acknowledged. The Group also acknowledges the guidance and support received from the Planning Commission. 2. The Working Group would like to place on record the highest sense of appreciation for dedicated and sincere efforts made by Shri Jamini Kumar Sharma, Joint Secretary ,Ministry of Textiles, Shri J. N. Singh, Textile Commissioner and Member Secretary of the Working Group, Smt. Shashi Singh, Joint Textile Commissioner, Office of the Textile Commissioner and Dr. Md. Nazmuddin Deputy Economic Adviser, Ministry of Textiles in drafting of the detailed and comprehensive report of the Working Group. CONTENTS Chapter Chapters Page No. No. Introduction 1 Vision Statement 3 1. The Challenges and Strategy for Growth of the Indian textiles 5 industry 2. Growth in the Tenth Plan and Projections for the Eleventh Plan 29 3. Raw Materials for the Textiles Industry 43 4. Organised Mill Industry 53 5. Powerlooms 61 6. Processing and Finishing 71 7. Clothing and Apparel 77 8. Wool and Woollen Textiles 83 9. Jute Industry 97 10. Technical Textiles 107 11. Handlooms 121 12. Sericulture and Silk Industry 169 13. Handicrafts 229 14. Exports 261 15. Textiles Engineering Industry 275 16. Research and Development 283 17. Human Resource Development 289 18. Fund requirement and financing arrangements 297 19. Proposed Plan Outlays & related issues 311 20. Special Package for North Eastern Region (NER) 319 21. Sub-plan for women, minority communities and scheduled castes 333 and scheduled tribes i LIST OF APPENDICES Chapter No. & Description Page No. Para no. A. Composition and terms of reference of the Working Group i Composition and terms of reference of the various Sub vi B. Group Tenth Plan targets and achievements (cotton / man-made xxiii 1.1 2.3 fibre / yarn & cloth) 1.2 2.21 Demand for fabric during the Eleventh Five Year Plan xxiv 2.23 & Past trend of production xxv 1.3 2.33 1.4 2.48 Employment in Textiles & Allied sectors xxvi 5.1 5.16 Induction of automatic and shuttleless looms xxvii 5.2 5.19 Modernized Workshed xxviii 5.3 5.20 Market Assistance xxix 5.4 5.20.1 Exposure Visits xxx 5.5 5.22 Powerloom Cluster Development xxxi 5.6 5.23 CAD Centres xxxii 5.24 & Modernization of Powerloom Service Centres xxxiii 5.7 5.27 5.8 5.26 Recurring Plan – Grant-in-Aid xxxiv 5.9 5.28 Welfare of Powerloom Workers xxxv Targets and achievements of woolen items during Tenth xxxvi 8.1 8.9 Plan (Financial) Targets and achievements of woolen items during Tenth xxxvii 8.2 8.13 Plan (Physical) 10.1 10.12 List of specialized fibres / filament yarns xxxviii 12.1 12.14 World mulberry raw silk production xxxix 12.2 12.14 World raw silk production xl State-wise financial allocation for Tenth Plan and xli 12.3 12.53 Expenditure upto 2005-06 for sericulture & silk textiles ii Chapter No. & Description Page No. Para no. State-wise projection of targets for mulberry sector in xlii 12.4 12.76 Eleventh Plan State-wise projection of targets of Vanya raw silk for xliii 12.5 12.76 Eleventh Plan 18.1 18.4 Year-wise progress of TUFS xliv 18.2 18.6 State-wise progress of TUFS xlv 18.3 18.7 Segment-wise progress of TUFS xlvi Interest reimbursement calculation for disbursement made xlvii 18.4 18.11.5 in Tenth Plan period under TUFS Interest reimbursement calculation for disbursement made xlix 18.5 18.12 in Eleventh Plan period under TUFS iii LIST OF TABLES Chapter wise Table Description Page No. No. 2.1 Tenth Plan targets and achievements 30 Fibre-wise projection of cloth production by the terminal year of 2.2 Tenth Plan (2006-07) and Eleventh Plan (2011-12) 33 Projection of year-wise, fibre-wise cloth production during Eleventh 2.3 34 Plan Projection of sector-wise share of the cloth production by the 2.4 35 terminal year of the Eleventh Plan 2.5 Sector-wise year-wise cloth production during the Eleventh Plan 35 2.6 Projected per capita availability of cloth during the Eleventh Plan 36 2.7 Projected production of spun yarn during the Eleventh Plan 36 2.8 Projected production of filament yarn during the Eleventh Plan 37 2.9 Projected production of fibres during the Eleventh Plan 39 2.10 Projected exports of textiles and apparels during the Eleventh Plan 40 Projected employment in textiles and apparels during the Eleventh 2.11 41 Plan Projected fibre / yarn consumption by the textile industry during the 3.1 46 Eleventh Plan 3.2 Installed capacity vis-a-vis Projected production 48 6.1 Requirement of continuous process houses 73 iv Chapter wise Table Description Page No. No. 8.1 Exports of woollen carpet and non-carpet items 87 Consumption of fibre and production of woollen item during the 8.2 93 Eleventh Plan Targets vis-à-vis achievements set for the jute industry during Tenth 9.1 99 Five Year Plan 9.2 Eleventh Five Year Plan targets of jute industry at a glance 105 9.3 Year-wise financial requirement for Jute Technology Mission 106 10.1 Segments of technical textiles – end use application wise 107 10.2 Segment-wise global market size of the technical textiles 108 Estimated segment-wise market size of technical textiles during 10.3 109 Tenth Plan period Growth rates and estimated market size of technical textiles during 10.4 111 2007-12 11.1 Funds allocated and utilization during Tenth Five Year Plan 123 Beneficiaries covered under DDHPY scheme during Tenth Five Year 11.2 123 Plan 11.3 Number of marketing promotion programmes organized 125 11.4 Supplies of yarn during Tenth Five Year Plan 126 Performance of the Integrated Handloom Training Project scheme 11.5 127 during Tenth Five Year Plan v Chapter wise Table Description Page No. No. 11.6 Existing funding pattern under Workshed-cum-Housing scheme 128 11.7 Existing funding pattern under Thrift Fund scheme 129 11.8 Main components of the Health Package scheme 129 11.9 Existing funding pattern under Group Insurance scheme 130 11.10 Existing funding pattern under New Insurance scheme 131 Performance of the Bunkar Bima Yojana during Tenth Five Year 11.11 131 Plan 11.12 Performance of R & D component during Tenth Five Year Plan 132 11.13 Performance of Enforcement Machinery during Tenth Five Year Plan 134 Funding pattern of the Mahatma Gandhi Bunkar Bima Yojana 11.14 135 scheme 11.15 Benefits under the Health Insurance Scheme 136 11.16 Existing funding pattern under Health Insurance scheme 137 Details of assistance sanctioned under Deen Dayal Hathkargha 11.17 138 Protsahan Yojana (DDHPY) scheme 11.18 Funding pattern under Workshed-cum-Housing scheme 150 11.19 Modifications under Mahatma Gandhi Bunkar Bima Yojana 153 11.20 Estimates of expenditure for Eleventh Plan - MPP 157 11.21 Proposed subsidy rates for various counts of hank yarn 160 vi Chapter wise Table Description Page No.
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