Rajasthan not just a textile hub but next destination for investors

Rajasthan has not just emerged as a textile hub over the last few decades which provides direct and indirect jobs to nearly seven lakh people and contributes 17percent to the state’s exports but nationally, the state has emerged as the largest producer of polyester viscose yarn and synthetic suiting material in the country with Bhilwara becoming the leading centre.

Bhilwara and Kishangarh are major power loom centres in the state. Over 20,000 functional looms and over 95 crore metres of different blends of polyester fabrics such as polyester wool, polyester viscose modal, and polyester viscose elastane are produced annually in the state.

While Barmer has been added in the list of towns of export excellence, Pali and Balotra have been planned to be developed as centers of excellence for textile processing. Besides PV suiting, the state has also made a name for itself in the processing of low-cost and low-weight fabric.

Jodhpur, Pali, Sanganer, and Kota are better known for traditional handloom, fabric and printing, Jaipur is being increasingly accepted as a fashion garment hub.

Further, with established backward and forward linkages, Rajasthan’s textile industry offers significant competitive advantages. Rajasthan has also emerged as one of the major cotton cultivating states recently. Cultivation of quality cotton is being largely promoted in the districts of Bhilwara, Chittorgarh, Ajmer, Jodhpur, Bikaner, Nagaur, Ganganagar and Hanumangarh.

The state is producing an estimated 20 lakh bales of cotton per annum now, against a mere 9 lakh bales in 2003-04. Easy availability of raw material has increased the interest of investors in setting up cotton yarn and denim units in the state.

At the same time, Rajasthan contributes about 85% of the country’s annual wool production. The wool yield of the Western belt of Rajasthan is 1700 gram per annum against an average of 400-500 gram per annum from the rest of the country.

The quality of wool produced in the western belt is ideal for carpet weaving. The Centre has established Wool Development Board of India, headquartered in Jodhpur for growth and development, marketing, testing of raw materials, marketing intelligence, price stabilization, product development, and for advising the government on policy matters and coordination.

Considering the importance and potential of the textiles sector in the state’s economy, textiles, including technical textiles have been included in the state’s list of thrust sectors in the Rajasthan Investment Promotion Scheme, 2014

Various concessions and incentives, like interest subsidies ranging from 5% to 7%, 50% concession on VAT, and 50% concession on entry tax on capital goods are provided for textile units under the Rajasthan Investment Promotion scheme.

Environment-friendly products like recycled fiber have been covered under the scheme. The government has introduced a special provision for 20% capital subsidy subject to an upper limit of Rs 1 crore for setting up zero liquid discharge based effluent treatment plants (ETPs)

Technical textile units coming up in the state are eligible for 7% interest subsidy. Concessions on stamp duty, conversion charges and electricity duty are also provided under the scheme.

There are six integrated textile parks have been sanctioned in Rajasthan with product categories ranging from hand printed fabrics, garments, weaving, spinning, and carpets to textile processing units. Out of the six textile parks, four parks are operational and two are at various stages of development.

Textile is one of the focus sectors under the sector-specific skill development training programmes initiated under the Integrated Skill Development Scheme – a joint initiative of the Centre and the state.

To further promote textile sector, the Rajasthan government at an event held in Delhi in August signed MoUs worth Rs 2,530 crore with several private companies envisaging establishments in various textile units, which would generate about 8,000 direct jobs and thousands of indirect ones. The investment proposals cover technical textile, recycled fibre, spinning, yarn, seamless garments, denim fabric, etc.

Arun Puglia, spokesperson, Association of Garment Exporters, Sitapura said that like tourism, textile is also a vibrant part of the desert state’s trade and commerce. The potential of the textile sector is well known to all but to increase the sector’s attractiveness, MoUs signed by the government in the sector need to be converted into real investment for which the government will have to provide common infrastructure.