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PM Mitra parks to boost Indias $100 bn textile export goal, says industry

PM Mitra parks to boost Indias $100 bn textile export goal, says industry

The Indian textile industry believes that the opening of seven PM Mega Integrated Textile Regions and Apparel Parks (PM Mitra) across the country will help develop the country as a global hub for textile manufacturing and exports. The textile sector is expected to attract major global investment, helping to boost its exports to $100 billion by 2030.

The government on Friday announced the setting up of PM MITRA Parks in Tamil Nadu, Telangana, Gujarat, Karnataka, Madhya Pradesh, Uttar Pradesh and Maharashtra. The move is inspired by the Center’s 5F vision which focuses on farm to fiber to factory to fashion to side. “These parks will spur investment once the global slowdown ends and attract large foreign direct investment as they provide world-class infrastructure at scale,” said Sanjay Kumar Jain of TT Ltd.

According to sources, the central and state governments of Tamil Nadu have identified and proposed to set up a Mega Park on around 1,100 acres near E Kumaralingapuram in Virudhunagar district. “The parks will attract major global investment in textiles and help boost the sector’s exports to $100 billion by 2030. With the reorientation of the global value chain and focus on friendship, India is on the radar of global investors looking for opportunities outside of China. A scheme like PM Mitra will speed up the decision-making process by such investors in favor of India,” said A Sakthivel, president, Federation of Indian Export Organizations (FIEO).

A special purpose vehicle owned by the Center and the state government will be set up for each park. The Ministry of Textiles will provide financial support in the form of development capital support of up to 500 million dinars per park, while units in PM Mitra Park will be provided with competitive incentive support (CIS) of up to 300 million dinars per park to encourage rapid implementation. State Governments shall provide contiguous and unencumbered land plots of at least 1000 acres of land and shall also facilitate the provision of all utility services, reliable electricity supply and availability of water and sewage disposal systems, efficient single window cleaning as well as convenient and stable industrial/ textile policy.

“The parks will bring a much-needed boost to scale and integrated manufacturing infrastructure. Global buyers are now looking for large, integrated and aligned facilities to bring more business to India as an apparel sourcing diversification strategy. TN Mitra Park can be visualized with a specific theme like ESG to attract investment from international buyers,” said Prabhu Damodaran, secretary of the Indian Textile Federation (ITF), the textile industry body.

Modern industrial infrastructure for the entire value chain of the textile industry will significantly reduce logistics costs and improve the competitiveness of textile exports with access to the most modern technology.

“Parks will attract investment and create more jobs, especially for female workers. We have also proposed to create an ecosystem to attract MSMEs to Tirupur, plug-and-play facilities, construction area to start from 15,000 sq ft for the benefit of MSMEs, request for additional incentives for setting up units in PM Mitra Park, inclusion of PLI-2 scheme to take advantage of the incentives of the units being set up in the project and solar power for industry and joint waste water treatment,” said KM Subramanian, president of the Tiruppur Exporters Association.

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