Govt wants to create 75 Tiruppurs across the country: Piyush Goyal

Second edition of PLI scheme for textiles on the cards, with focus on apparels

The government wants to create Tiruppur-like 75 textile hubs in different parts of the country, which will in turn attract not only huge investments but also create numerous employment opportunities, commerce and industry minister Piyush Goyal said on Sunday.

“If each one of them (textile hub) starts producing Rs 50,000 crore worth of textile products, (then) each of them starts providing employment to lakhs of young boys and girls. Of course we will also bring modern technology and do sustainable garment manufacturing. We will learn from the experience of Tiruppur,” Goyal said.

Tiruppur is a major textile hub and is home to 10,000 garment manufacturing hub, employing over 600,000 workers.

“In 1985, Tiruppur was exporting products worth Rs 15 crore. In the year ended March 2022, the estimated exports from here are Rs 30,000 crore, that is two thousand times growth. That's Tiruppur's growth in 37 years,” Goyal said while addressing an exporters’ meet in Tiruppur.

The Textiles industry is the second largest provider of work after agriculture. Over the past few years, the government has also taken measures to ensure the sector's growth in terms of increasing production, exports, rolling out export-boosting schemes such as rebate of state an central taxes and levies (RosCTL) and Remission of duties and taxes on export products (RoDTEP), as well as the latest one being the production-linked incentive (PLI) scheme.

“The industry size is about Rs 10 trillion. The sector has the potential to grow to Rs 20 trillion in the next five years with exports of Rs 10 trillion. The Compounded Annual Growth Rate at Tiruppur over the last 37 years is nearly 23 per cent,” the minister said.

He added that the government is in the process of devising the second edition of the PLI scheme for the textile sector, with focus on the apparels segment.

Discussions are going on between the textiles ministry, industry department and NITI Aayog, in consultation with industry participants. Once every department agrees, the scheme will be put up to Cabinet for its approval.

The government had last year rolled out PLI scheme to expand man made fabrics and technical textile segment’s value chain to help India regain its dominant status in global textiles trade, at a time when the country’s share of global exports have gradually declined over few years. The outlay of the scheme was Rs 10,683 crore.