• PLI
    Production Linked Incentives Schemes in India
    KNOW MORE

Back to Growth: Textile Machinery in India

textile machinery

The textile machinery manufacturing section is one of the largest segments of the machinery manufacturing industry in India. This industry has about 1000 machinery and component manufacturing units. Nearly 300 units produce complete machinery and the remaining produces various textile machinery components.

Market Size

  • The Indian textile machinery industry expected to touch INR 45,000 crore/ $6 bn mark by 2022
  • Around 87% of the total production, i.e., textile machinery is coming from the six clusters namely Ahmedabad, Bangalore, Coimbatore, Ludhiana, Mumbai and Surat

 

Growth Drivers

  1. India’s strong and improving manufacturing competitiveness
    • Vertically integrated supply chain in textile and apparel manufacturing
    • Competitive in costs of manufacturing compared to most countries
    • Government supporting indigenous machinery manufacturing
  2. Demand from Textiles and Apparel Industry
  3. Substituting imports with domestic manufacturing 
    • India is the 4th largest importer of textile machines globally. Local production meets only around 1/3rd of the total textile machinery demand in India, pointing to growth potential for domestic manufacturing
  4. Ready availability of locally made spare parts will increase demand of those machineries
  5. Export potential of textile machinery
    • Bilateral and multilateral treaties with different countries that have significant presence in textile manufacturing
    • Cost of manufacturing of spinning machineries in India is already one of the lowest in the world


Policies and Government Initiatives

  • 100% FDI through automatic route in the Indian textiles sector
  • Scheme for Integrated Textile Parks (SITP): To facilitate textile units to meet international and environmental standards by providing support for common infrastructure and buildings within parks. SITPs dedicated to technical textiles, namely, Pallavada Technical Textiles Park (Tamil Nadu), Vraj Integrated Textile Park Ltd. (Gujarat), Mundra SEZ Integrated Textile and Apparel Park Pvt. Ltd (Gujarat), Gouthambudha Textile Park Pvt. Ltd (Andhra Pradesh) and Great Indian Linen & Textile Infra Structure Co. (P) Ltd (Tamil Nadu) are functional in the country. 
  • Integrated Skill Development Scheme for the Textiles and Apparel Sector (ISDS): This scheme aims to provide specific skills as per the requirement of apparel and other segments of textile industry, as well as employee-trained person in related occupations.
  • Amended Technology Upgradation Fund Scheme (ATUFS): To enable technology upgradation in textile sector by providing capital investment subsidy across different segments of the textile value chain.  
  • Scheme for Capacity Building in Textile Sector (Samarth): The aim is to provide a demand-driven, placement-oriented skilling program to incentivise the efforts of the industry in creating jobs with a target to train 10 lakh persons.