North-East Region Textile Promotion Scheme (NERTPS)

•  The scheme was launched by the Union Textile Ministry. Under this intervention, each state now has one centre with three units having approximately 100 machines each.
• The project is fully funded by the Ministry with an estimated cost of Rs. 18.18 crores for one Apparel Center in each state.
• The central assistance is towards construction of physical infrastructure, machinery for the units and towards capacity building of workers for a period of 3 years.
• The broad objective of the North East Textile Promotion Scheme is to develop and modernise the textile sector in the North East Region by providing the required Government support in terms of raw material, seed banks, machinery, common facility centres, skill development, design and marketing support etc.
• The specific objectives of the scheme include increase in the value of textile production, technology upgradation, improvement in design capability, diversification of product lines and value addition, better access to domestic and export markets, clusterisation and improvement in labour productivity, market access & market promotion.

Analysis(Textile industry of India):

• The textile industry is the second largest employer in the country after agriculture; any allocation to it has a multiplier effect on the economy at large. According to an Assocham report, employment generated in the economy because of a rise of Rs.1 in demand of the industry, is more than 5 times the employment created in the sector itself.
• The government’s decision to incentivize textile and apparel firms to absorb more labour by offering to pay a portion of the Employees’ Provident Fund for new employees will further enhance this effect. Female labour force participation rate is also expected to increase from a boost to the textile industry.
• But if the textile and apparel industry has to become competitive at an international level, it needs a major revamp. The issues of productivity suffered by an industry largely restricted to the small scale and unorganized sectors needs to be addressed. Incidentally, around 60% of the spindles used in India are more than 25 years old.
• Vietnam and Bangladesh are already securing better terms for themselves via free trade agreements with major markets. India should start doing the same.
• The issues of productivity suffered by an industry largely restricted to the small scale and unorganized sectors needs to be addressed.
• The government should lay emphasis on promotion and marketing of textiles and designs that are indigenous to India.(take lessons from success of Fab India brand)
• Geographical indications could prove to be an effective means of securing a niche market for Indian handloom in foreign markets.
• e-commerce could also be used to the advantage of the textile industry—to eliminate layers of middlemen and improve access.
• To successfully reap the benefits of this opportunity, it is important to diversify and embrace new innovations.
• We should promoting traditional industries as well as the emerging industries based on synthetic fibre.
• It is expected that this package will boost exports, increase investment and make the textile industry an integral part of the Make in India programme.
• Any allocation to textiles sector will have a multiplier effect on the economy at large.

By: Vishal