PM MITRA Scheme: Feature, Selection, Funding And Execution

The Centre has selected sites in Tamil Nadu, Telangana, Karnataka, Maharashtra, Gujarat, Madhya Pradesh and Uttar Pradesh to set up new textile parks, a year and a half after the PM Mega Integrated Textile Regions and Apparel (PM MITRA) scheme was announced.

PM Mitra Parks

• PM MITRA Parks aims to propel India as a global hub for textile manufacturing and exports.
• The proposed parks are expected to enhance the competitiveness of the textiles industry by helping it achieve economies of scale and attract global players to manufacture in India.
• Nearly 70,000 crores investment and 20 lakhs employment generation is envisaged through these parks.
• The parks will be set up by 2026-27.
• The total outlay for the project is ₹4,445 crore, though the initial allocation in the 2023-24 Budget is only ₹200 crore.
• The PM MITRA mega textile parks will be a great example of ‘Make in India’ and ‘Make For the World.’ #PragatiKaPMMitra

Selection Process for PM MITRA Parks

• Seven sites were chosen out of 18 proposals for PM MITRA parks which were received from 13 States.
• Eligible states and sites were evaluated using the ‘Challenge Method’ based on a set of criteria, including connectivity, existing ecosystem, textile/industry policy, infrastructure, utility services etc.
• PM Gati Shakti- National Master Plan for Multi-modal Connectivity was also used for validation.

Funding And Execution of PM MITRA Parks

What is PM MITRA Scheme?

• In 2021, Ministry of Textiles (MoT) launched PM Mega Integrated Textile Regions and Apparel Parks (MITRAs) Scheme to strengthen the Indian textile industry 
• PM MITRA Scheme is inspired by the 5F vision of the Prime Minister. The ‘5F’ Formula encompasses – Farm to fibre; fibre to factory; factory to fashion; fashion to foreign.
• PM MITRA scheme aspires to fulfil the vision of building an Aatmanirbhar Bharat and to position India strongly on the Global textiles map.

Features Of  PM MITRA Scheme

• PM MITRA Parks offer an opportunity to create an integrated textiles value chain right from spinning, weaving, processing/dyeing and printing to garment manufacturing at 1 location.
• An Integrated Textile Value chain at 1 location will reduce the logistics cost of the Industry.
• The PM MITRA scheme envisages leveraging Public Private Partnership model for fast-paced implementation in a time-bound manner.

Significance of PM MITRA Scheme

• PM MITRA scheme will reduce logistics costs and strengthen the value chain of the Textile Sector to make it globally competitive.
• High logistics costs are considered a key hurdle to India’s goal of boosting textile exports.
• An investment of Rs 70,000 crore into these parks can generate employment for about 20 lakh people.
• The parks are crucial to attract Foreign Direct Investment (FDI).
• From April 2000 to September 2020, India’s textile sector received Rs 20,468.62 crore of FDI, which is just 0.69% of the total FDI inflows during the period

Indian Textile Sector

• The Indian textile sector is one of the critical sectors of the Indian economy, accounting for more than 2% of the total GDP (Gross Domestic Product) and more than 12 % of the manufacturing sector GDP.
• The Indian textile sector has a diverse value chain spread across fibre to readymade garments.
• The Indian textile sector is the 2nd largest provider of employment in India, after agriculture.
• India is the 6th largest exporter of textile and apparel in the world, with 4% share of the global trade in textiles and apparel.
• India’s textile and apparel exports (including handicrafts) stood at USD 44.4 billion in FY22, a 41% increase YoY.
• Indian textile sector has around 4.5 crore employed workers including 35.22 lakh handloom workers across the country.

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