Mega Investment Textiles Parks (MITRA) scheme to be Launched
The Finance Minister, Nirmala Sitharaman, announced during the Union Budget 2021 presentation that the Government has proposed a “Mega Investment Textiles Parks (MITRA) scheme”.
Highlights
- The scheme will enable the textile industry to become globally competitive.
- It will help the industries to attract large investments and boost employment generation besides boosting the exports.
- The scheme will help in creating a world class infrastructure with plug and play facilities. This in turn will create global champions in exports.
- MITRA scheme will be launched in addition to the Production Linked Incentive Scheme (PLI).
Production Linked Incentive (PLI) Scheme
It is a Central Sector scheme. The scheme was notified in April 2020 for the Large-Scale Electronics Manufacturing. This was notified with the objective of providing the financial incentives for domestic manufacturing of goods. The scheme also seeks to attract large investments. It was initially launched for the domestic manufacturing of Mobile Phones and Specified Electronic Components. In the later phase, it was rolled out for the pharmaceutical ingredients and medical devices.
Incentive offered under PLI Scheme
This scheme provides 4% to 6% incentive on incremental to the eligible companies who are manufacturing goods for 5 years period. The companies that are registered in India and involved in the manufacturing of goods are covered under the Target Segments of the scheme. These companies are eligible for the incentives under the scheme.
Textile Industry in India
Textile and apparel industry is the earliest industries in India. It has an inherent and unique strength of incomparable employment potential. This sector is the biggest employer after agriculture. It directly provides employment to 4.5 crore people and 6 crores employments in the allied sectors. India is the second-largest manufacturer of textiles and clothing across the world. It is also the second-largest exporter of textiles and apparel. It has a share of 5% in the global trade.
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Month: Current Affairs - February, 2021