The textile industry is one of the major contributors to the Indian economy. Its share in the Indian GDP is 2.3% and contributes 12% of India’s exports. Also, the sector is one of the largest employment generators in the country.
Maharashtra is one of the leading textile-producing States in the country. The state contributes 10.4% of the country’s total textile and apparel production and shares 10.2% of employment in the sector.
The previous “Textile Policy 2018-23” of the Maharashtra government has served well for the state in boosting the industry, generating employment and improving the state’s economy. But, with changes like automation in textile manufacturing technologies and the need for sustainable practices and processes in the industry, the Maharashtra government has come out with a new textile policy - Integrated and Sustainable Textile Policy 2023-28 - that aims to give an impetus to both the exiting textile manufacturing industries and those who want to set up new plants in the state.
The Integrated and Sustainable Textile Policy 2023-28 aims to
The new textile policy of Maharashtra follows the Government of India’s 5F vision for the textile industry - Farm to Fibre to Factory to Fashion to Foreign.
With the new textile policy, the Maharashtra government aims to achieve the following objectives:
The government has divided the state into four textile zones depending on inputs for the industry.
Under the scheme, a committee set up by the Co-operation, Marketing and Textile Department of Maharashtra will recommend the eligible machinery for capital subsidy.
The subsidy will be paid as follows:
As per the policy, textile units can avail of capital subsidies based on a textile unit’s Zone and also on its size.
The emphasis on sustainability in the new textile policy for long-term benefits to the environment and the textile sector as a whole can be seen in the incentives it provides.
As the demand for technical textiles is on the rise and have good export opportunity, the state government has put special emphasis on technical textiles.
Apart from capital subsides and other incentives, the policy envisages marketing support, skill development and capacity building for all textile units in the state.
Interlink Capital may offer services such as financial advisory, investment facilitation, assistance in availing incentives and subsidies, regulatory compliance, and strategic guidance tailored to the requirements of businesses operating within the textile industry in Maharashtra.
Stakeholders can contribute by actively participating in policy discussions, investing in sustainable practices and technologies, adhering to regulatory requirements, promoting skill development initiatives, and collaborating with the government and other stakeholders to drive the growth and sustainability of the textile industry in Maharashtra.
Businesses interested in availing benefits under this policy typically need to fulfill certain eligibility criteria and adhere to the guidelines outlined by the government. They may need to submit applications and undergo scrutiny to qualify for incentives and support.