1) The textile industry in India contributes 5% to GDP and employs over 45 million people. The North East region has opportunities to become a textile production hub like Bangladesh. 2) The Ministry of Textiles and NEDFi have several initiatives to promote the textile industry in North East India, including setting up apparel and garment centers, skill development programs, and marketing support. 3) NEDFi provides loan schemes targeted for textiles and handicrafts businesses. It is also launching a Rs. 100 crore North East Venture Fund to invest in early and growth stage enterprises focused on sectors like IT, food processing and tourism.

1. Finance
Advisory
Consulting
OPPORTUNITIES IN TEXTILES,
HANDLOOM AND APPARELS
NORTH EASTERN DEVELOPMENT FINANCE CORPORATION LTD.
(NEDFi)
Presentation
By
Shri. R. E. Zeliang, DGM

2. Finance
Advisory
Consulting
Today's
Session
Textile
Industry –
(Few
Facts)
Opportuni
ties
Challenge
s and
strategies
NEDFi
Initiatives
NEDFi
Schemes

3. Finance
Advisory
ConsultingTextile Sector –Few Facts
•Textile Industry has vast presence in economic life of the country.
• Contribute about 5% of the country’s GDP
• Textile export is about 14% of the total country export
• India has 2nd largest Textile Manufacturing capacity after China
• India is the 2nd largest cotton consumer after China
• The sector is the second largest employer after agriculture.
• Indian textile Industry is estimated at around $108 billion.

4. Finance
Advisory
ConsultingOpportunities
Industry outlook The textile industry is expected to reach $223 Billion
by 2021 from current $108 Billion
Employment Textile Industry expected to provide direct
employment to 45 million from current 15 million by
2021
Market for North East 1. Production Hub for textile like Bangladesh
2. Opening up of Border through Bangladesh, China,
Myanmar, Nepal/ Bhutan.
Rising Govt. focus and favourable
policies to support the Industry
Under Union Budget 2015-16, GOI has allocated
around USD 584.49 million for Textile Industry

5. Finance
Advisory
Consulting
Handloom products

6. Finance
Advisory
Consulting
• Under the “Make in India” initiative of
Hon’ble PM –
Stress is given on:
• Skill, Scale and Speed
• Zero Defect (Product)
• Zero Effect (Environment)

7. Finance
Advisory
Consulting
• The reservoir of handloom Skills is concentrated in the
North Eastern States
• Weaving practiced by most Women
• More than 200 ethnic group with unique cloth
designs
• 70% unorganised
• International recognition e.g. Eri, Muga Silk,
traditional design in Modern Fashion
• Designers are coming up with new design
North East

8. Finance
Advisory
ConsultingChallenges
1. Lack of standardization in process and practices
2. Lack of proper infrastructure and equipment for production
3. Lack of quality control norms and procedures
4. Lack of Capacity to produce in large volumes
5. Non availability of proper accessories which add value to
products
6. Non availability of need based designer input
7. Lack of awareness on market trend and demand
8. Lack of marketing skill
9. Lack of co-ordination among producers for aggregation and
marketing
10. Deficiency in Supply chain management
11. Lack of capital

9. Finance
Advisory
Consulting
Strategies
Few of the strategies could be:-
• Achieving Scale Across the Value Chain
• Change from Unorganised to Organised
• Capacity building
• Skill, Quality and Productivity
• Product Design and Diversification
• Innovation and R&D
• Partnership/collaboration –Govt, Institution, Firm, Craftsmen
• Implementation of Govt. Schemes and Policies
• Attract Investment into the Sector
•Marketing Platforms
• Incentives e.g. Taxation
• E-marketing…Maheela-e-haat etc

10. Finance
Advisory
Consulting
Initiatives by Ministry of Textile
for North East India
•The Govt. has undertaken a Rs 1,038 crore scheme in the North East to boost
textile exports, increase jobs and curb migration of workers.
•Funded by Ministry of Textiles under the “North –East Region Textile
Promotion Scheme (NERTPS), the project is also aimed at developing,
modernising the textile sector of the region.
•Under the NERTPS the textile ministry is providing Rs. 18.00 crores for each
state of the region for setting up of a Apparel and Garment making Centre
(AGMC).
•Each AGMC will provide direct employment to 1200 to 1500 people, mostly
women and take care of skill upgradation and marketing of finished products.
•Each unit is expected to meet the demand for uniforms and garments of the
Police, Security and Paramilitary forces and of school children and civilians.

11. Finance
Advisory
Consulting
Initiatives by Ministry of Textile
for North East India
• Though Cotton production in the region is very less, however, silk like Eri,
Muga is abundant.
•Special Scheme for Promotion of Geo Textiles in the North Eastern states
will facilitate use of Geo Textiles, to increase the durability of road and
reduce maintenance expenditure stabilisation of Hills etc. Recent Example is
the use of Geo Textile in Assam Agartala Road.
•North East India is strategically located to be the gateway to South East
Asian Countries with 98 % of it’s boundary with neighbouring countries like
China, Bangladesh, Myanmar, Nepal and Bhutan.
•Opening up of Borders through Bangladesh would be of Immense help.
•Transport of products through Bangladesh to Tripura and Rail Connectivity
as well as proximity to port is big opportunity for the Industry.

12. Finance
Advisory
ConsultingNEDFi’s Intervention
•Skill Development Trainings
Natural Dye Training
Cloth Mat Project
 Handloom Design Training
 CPLT – Centre for Practical Livelihood Trainings
•Marketing support:- By sponsoring entrepreneurs to various
fairs and exhibitions (B2B)
•Business Facilitation centers:- To counsel the entrepreneurs and
provide bank linkages

13. Finance
Advisory
Consulting
NEDFi INITIATIVE UNDER CSR
A. Incubation of Craft:-
1. explore, identify and adopt new crafts
2. standardization in product and process
3. adopt appropriate technology - quality and productivity.
B. Capacity Building & Production :-
1. build capacity of craft-persons in the adopted crafts.
2. facilitate and enable artisans in production, aggregation and
packaging of goods.
C. Promotion/Marketing :-
1. Marketing of the identified produce through exhibition,
showrooms, e-platform etc.
2. Establish norms in its dealings with craftsperson.

14. Finance
Advisory
ConsultingRelevant NEDFi’s Schemes of Finance
Sl.
No.
Name of the scheme Nature &
Extent of
Assistance
Promoter’s
Contribution
Interest
Rate
1 PROJECT FINANCE Rupee term
Loan (RTL)
35-40 % of the
project cost
PLR +1-3%
p.a.
2 NORTH EAST ENTREPRENEURS
DEVELOPMENT SCHEME (NEEDS)
RTL (75 %) Of
Project Cost
25 % of the total
project cost
8% p.a.
3 JUTE ENTERPRISE DEVELOPMENT
SCHEME (JEDS)
RTL (75%) Of
Project Cost
25 % of the total
project cost
8 % p.a.
4 WOMEN ENTERPRISE DEVELOPMENT
SCHEME (WEDS)
RTL (75%) Of
Project Cost
25 % of the total
project cost
8 % p.a.
5 SCHEME FOR NORTH EAST HANDLOOM
AND HANDICRAFTS (SNEHH)
RTL (75%) Of
Project Cost
25 % of the total
project cost
8 % p.a.

15. Finance
Advisory
Consulting
Venture Capital
• NEDFi in association with Ministry of DoNER has initiated the launch of
“ North East Venture Fund” , a dedicated venture capital fund for the
North East.
• The corpus of the fund will be Rs 100 crore. Rs. 45 crore from Ministry
of DoNER, Rs 30 crore from NEDFi and remaining Rs 25 crore from other
institutions.
• Investment will be done in enterprises, both in early stage and growth
stage.
• To operationalise the fund, NEDFi Trustee Limited and NEDFi Venture
Capital Limited has already been incorporated

16. Finance
Advisory
ConsultingVenture Capital (Contd…)
•Investment focus of the fund will be in various fields
including but not limited to:
•IT & ITES
•Food Processing
•Healthcare
•Tourism
•Aggregation of services etc.
•The fund is targeted to be launched by November 2016,
after registration with SEBI.

17. Finance
Advisory
Consulting
THANK YOU