Textile Funds Boost: Centre Vows Quick TUF Clearance

Surat, Gujarat –  A ray of hope has illuminated the Indian textile industry, particularly for the vibrant entrepreneurial spirit of Surat. In a significant announcement, Neelam Shami Rao, Secretary, Ministry of Textiles, Government of India, has assured industry leaders that the department is pulling out all stops to clear pending files under the crucial Technology Upgradation Fund (TUF) scheme within the next three to four months. This long-awaited action promises to inject much-needed liquidity and confidence into a sector poised for global expansion.

Speaking at an interactive meeting organized by the Southern Gujarat Chamber of Commerce and Industry (SGCCI) on Friday, Rao addressed a packed hall of anxious textile industrialists from Surat. Her words offered a direct response to their persistent concerns regarding the stalled funds that are vital for modernization and competitiveness.

“Surat itself has the potential to take India’s textile industry from $30 billion to $100 billion,” Rao asserted, challenging the local entrepreneurs. “Textile industrialists of Surat should try to make the same quality fabrics as those made in other countries and make other countries that buy fabrics their customers.” She also revealed the government’s efforts to introduce new engineering courses focused on technical textiles, signaling a forward-looking approach to innovation.

Expanding Schemes and Addressing Global Disparities

Secretary Rao further elaborated on broader policy initiatives. “Currently, all the schemes are under consideration. The government is thinking about expanding the PLI scheme,” she stated, hinting at potential new avenues for industry support. A dedicated study by the Additional Textile Secretary is underway to strategize increased textile exports. The blueprint for these new schemes will be fully coordinated with major national institutions before a formal announcement. The budget allocation will then be determined by the 16th Finance Commission, which the government intends to constitute soon, followed by the Textile Department’s comprehensive report to the Commission.

SGCCI President Vijay Mewawala painted a stark picture of India’s current standing in the global textile arena, despite its economic rise. “India has become the fourth largest economy in the world today,” he noted, “and is second in the global textile market. However, there is a huge difference in the textile production figures of China and India. India has only 5% share in the world in the textile sector, while China has 35%.” He highlighted the innovative gap, citing that “40,000 patents are filed in the textile sector in China every year, while less than 400 patents are registered in India.”

The Price Sensitivity Challenge and Local Concerns

Mewawala underscored the price-sensitive nature of the global textile market. “A country that can produce cheap and quality textiles can increase its market share in the world,” he stressed. He then critically addressed the impact of the government’s Quality Control Order (QCO) for the yarn sector. “After the implementation of QCO, the prices of yarn in India have increased by 25-30% compared to the global market.” He warned of a potential loophole: “If the import of yarn was banned in India, the import of garments and fabrics has increased. If Indian manufacturers cannot take advantage of the growing Indian market today, China will take advantage of this and dump its products in India.” His solution: “India will have to produce quality fabrics at the global level; fashion, design, and garmenting should also be the best.”

Mewawala also proposed concrete steps for Surat, including the establishment of Common Facility Centers (CFCs), ₹1200 crore assistance for the sustainability of South Gujarat’s industry, and the immediate initiation of a P-M Mitra Park, with the Chamber’s inclusion on its board for active support.

Surat’s Vision for Growth and Specific Demands

Ashish Gujarati, Chairman of SGCCI’s Textile Task Force Committee, presented Surat’s ambitious future, projecting an investment of approximately ₹49,000 crore in the Surat textile industry over the next five years, encompassing weaving, knitting, embroidery, spinning, and processing. “Surat has the highest number of 80,000 waterjets in the world after China,” Gujarati stated, anticipating this number to swell to 4 lakh in the next five years, prompting his demand for more Common Effluent Treatment Plants (CETPs) for Surat.

Industry representatives at the meeting put forth several key proposals, including making the PLI scheme generic (open for all) in spinning-knitting, resolving GST inward duty issues for spinners, including zari industry machines in A-TUF, and allocating more CETPs for Surat’s 13 sub-clusters, specifically requesting Central Financial Assistance (CFA) for waterjet units under the cluster-specific Mega Powerloom Cluster Developer Scheme. Concerns were also raised regarding BIS, QCO on polyester yarn, RODTEP, TUF, A-TUF, PLI schemes, and the non-availability of ITC in the zari industry.