India Aims to Launch More Mega Textile Parks Amid Past Challenges

The Indian government is set to embark on an ambitious initiative to establish mega textile parks, despite facing significant challenges in similar past endeavors. The textiles sector plays a crucial role in India’s economy, contributing approximately 2.3% to the country’s gross domestic product (GDP) and employing around 45 million individuals, making it the second-largest employer after agriculture.

During the budget presentation for 2026-2027, Finance Minister Nirmala Sitharaman announced plans to create these textile parks under a ‘challenge mode.’ This move echoes a previous declaration made five years ago, where she proposed the establishment of seven textile parks during the height of the Covid-19 pandemic, with an ambitious three-year completion target. However, many of those initiatives did not achieve the desired investment and job creation levels.

As of now, the government has confirmed the establishment of seven textile parks under the Pradhan Mantri Mega Integrated Textile Region and Apparel scheme. Construction has commenced on access roads for three of these parks located in Dhar (Madhya Pradesh), Warangal (Telangana), and Kalaburgi (Karnataka). Meanwhile, potential investors have been invited to the parks in Virudhunagar (Tamil Nadu) and Amravati (Maharashtra), indicating a proactive approach to attracting private participation.

Additionally, the parks in Navsari (Gujarat) and Lucknow (Uttar Pradesh) have received approvals for their bid documents from the Public Private Partnership Appraisal Committee, paving the way for private developers. These developers will be tasked with creating integrated textile parks through the Design, Build, Finance, Operate, and Transfer (DBFOT) model, aimed at fostering a more sustainable and efficient textile industry in India.

The government’s renewed focus on the textile sector underscores its significance in the nation’s economic landscape. Given that about 80% of the sector’s capacity is concentrated in micro, small, and medium enterprises (MSMEs), the success of these mega parks could potentially boost the overall growth of the industry and create numerous job opportunities for millions of workers in the sector.

Source: scroll.in