Govt. Initiative in Indian Textile Industry

1. Assignment
on
Entrepreneurship
Sangeeta Roy.
M.Sc. Fashion Management
Semester III

2. The Textile Industry
The Textile industry has two broad segments,
namely handloom, handicrafts, sericulture,
power looms in the unorganized sector and
spinning, apparel, garmenting, made ups in the
organized sector.

3. Handloom
A ‘handloom’ is a loom that is used to
weave cloth without the use of any
electricity. Hand weaving is done on pit
looms or frame looms generally located
in weavers’ homes. Weaving is
primarily the interlacing of two sets of
yarn – the warp (length) and the weft
(width). The equipment that facilitates
this interlacing is the loom.

4. Advantages of
Handloom Cotton
The handloom experience (soft,
comfortable and durable) is due to the
human handling of the yarn in the
weaving process. As a result, yarn and
the fabric are much less stressed and
damaged. Hand woven cotton is known
for its breathability as compared to mill
made cotton. This implies that it allows
more air penetration making it cooler,
softer and more absorbent. It keeps us
cooler in summers and warm in winters.

5. Development of Handloom
Focus is on
assisting weavers
with designs,
marketing and
improved wages.
National Institute
of Fashion
Technology and
leading members of
the fashion
industry have been
roped in for design
support to
weavers.
Equipment and
Raw material for
producing clothes
for the high-end
customers and
niche market are
also being
provided.
Higher wage
coming from high
value production
and reducing level
of transactions in
marketing would
enhance the wage
of the handloom
weavers
substantially.
In order to provide
better marketing
reach, the Ministry
has launched an E-
commerce initiative

6. Handloom Weavers
Comprehensive Welfare
Scheme
This comprises of two separate schemes viz. the
Health Insurance Scheme (HIS) for providing
Health Insurance to the Handloom weavers and
Mahatma Gandhi Bunkar Bima Yojana (MGBBY)
for providing Life insurance cover in case of
natural/ accidental death, total/partial disability
due to accident.

7. Objective of the
Scheme
Providing adequate financial
cover against death/accident to
the Handloom weavers at a
reasonable cost.

8. Diversified Handloom Development Scheme
This scheme provides assistance for technological and skill-
upgradation of weavers for design and product development
through 25 Weavers’ Service Centres and 05 Indian Institutes of
Handloom Technology all over the country to improve the
productivity and earnings of the handloom weavers.

9. Objective of the Scheme
• Provide skill up-gradation of the
handloom weavers through training,
workshops and exhibition
• Design development and
documentation of traditional designs
• Provide market linkage and meeting
the market requirements

10. Mill Gate Price Scheme
This scheme makes available all types of yarn at mill
gate price to the eligible handloom agencies to
facilitate regular supply of basic raw material to the
handloom weavers and to optimize their employment
potential. Under the scheme, the Government of
India reimburses the transportation expenses
involved in the supply of yarn from mill to godown of
the user agencies.

11. Objective of the Scheme
• Regular supply of basic raw
materials to the handloom sector
• Utilize the full employment
potential of the sector

12. Setting up Integrated Textile Parks
• The Scheme of Integrated Textile Parks. It aims to assist small and medium
entrepreneurs in the textile industry to clusterize investments in textile parks by
providing financial support for world class infrastructure in the parks
• The Government approved 13 new textiles parks
• These textile parks will receive a grant to the extent of Rs 520 crores from
government for infrastructure development, they are estimated to bring in
private sector investment of about Rs 3240 crores into the sector and generate
direct employment for about 35,000 persons over the next three years

13. Objective of the Scheme
The scheme operates to
provide funding for private
entrepreneurs to construct
textile units with all the world-
class infrastructure features.
Identify the well-groomed
location for the Textile Units to
meet the geographical, social
and international standards.
Bring considerable growth in
the export rate.
Generate huge employment
opportunities.

14. Features of the Scheme
Infrastructure including
drainage, water, compound
wall, power, waste
treatments etc.
Plants & Machinery for the
efficient production of ITP.
Building
labs with equipment
training centres
canteen
hostel
offices
recreation
marketing support

15. Technology Upgradation Fund Scheme
The Technology Upgradation Fund Scheme (TUFS) was introduced by the Government
in 1999 to facilitate new and appropriate technology for making the textile industry
globally competitive and to reduce the capital cost for the textile industry.
A sum of Rs. 21,347 crore has been provided as assistance to the industry during 1999-
2015. It has led to investments worth Rs.2,71,480 crore, and created job opportunities
for nearly 48 lakh people.

16. Amended Technology Upgradation
Funds Scheme (ATUFS)
Provide one time capital subsidy for investment in the
employment and technology intensive segments of the textile
value chain, keeping in view promotion of export and import
substitution.
Will be credit linked and projects for technology upgradation
will be eligible for grant of benefits under it.
Additional subsidy of 10% Capital Investment Subsidy for
made-ups units

17. Objective of the Scheme
Enhance productivity, quality, investment, employment,
export and import substitution

18. Thank You !!!