Domestic textile clusters are promoted through various Government initiatives. The concept of setting up of Mega Textiles Parks by Ministry of Textiles is at stage of discussion.

Products like fibre, yarn and fabric in the textile value chain are being strengthened and made competitive through various scheme like Powertex for fabric segment, Amended Technology Upgradation Fund Scheme (ATUFS) for all segments except spinning and Scheme for Integrated Textile Parks (SITP) for all segments.

Government has removed anti-dumping duty on PTA, a key raw material for the manufacture of MMF fibre and yarn. To enhance local sourcing, the consolidated FDI policy s effective from August 28, 2017.

According to this policy, for Single Brand Product Retail trading, in respect of proposals involving foreign investment beyond 51%, sourcing of 30% of the value of goods purchased, will be done from India, preferably from MSMEs, village and cottage industries, artisans and craftsmen, in all sectors.

For Multi Brand Retail trading, at least 30% of the value of procurement of manufactured/ processed products purchased will be sourced from Indian micro, small and medium industries, which have a total investment in plant & machinery not exceeding USD 2 million.

This information was given by the Minister of Textiles, Smriti Zubin Irani, in a written reply in the Rajya Sabha today.

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MM/SB

Local sourcing requirements mandate Indian procurement for retail investments, shaping domestic textile supply chains and MSME participation. Promotion of domestic textile clusters emphasizes supply-chain strengthening and procurement-linked industrial policy: the Ministry proposes Mega Textiles Parks and implements schemes including Powertex, ATUFS (excluding spinning) and the Scheme for Integrated Textile Parks, while removal of anti-dumping duty on PTA supports man-made fibre manufacture. The consolidated FDI policy conditions retail investment on local sourcing obligations to channel procurement towards Indian MSMEs, village and cottage industries, artisans and craftsmen.