Will PM MITRA textile parks boost skill development and employment generation in the textile sector?

India’s involvement in the global textile market should have been prominent, given the strong raw material basis for both cotton and synthetics. However, in recent years, India’s worldwide competitiveness in the textile and garment industries has deteriorated dramatically. As a result, the sector’s textile and apparel exports have dropped. The shortage of skilled labour for high-skilled export jobs is also having a significant impact on the sector’s growth.

The government’s recent approval of seven PM MITRA parks may prove beneficial in increasing India’s textile exports. The project should also supply the industry with much-needed world-class infrastructure, as well as a pool of skilled labour to supplement the sector’s growing employment prospects.

Key points:

• The textile sector in India is the country’s second-largest employer, employing 45 million people directly and another 60 million indirectly.
• Yearly exports to over $100 billion in the next few years
• Will the establishment of PM MITRA textile parks further boost the employment generation in the sector?
• How will the infrastructure help in bridging the skill gap in the textile industry?

Annual textile export to increase over $100 billion

The seven mega textile parks will be built in willing states over a five-year period for a total expenditure of Rs 4,445 crore. With the successful execution of the programme, the apparel industry is likely to grow its yearly exports to over $100 billion in the next few years, according to A. Sakthivel, Chairman of the Apparel Export Promotion Council. This should assist India in reviving its textile sector in the aftermath of the pandemic, as well as boosting the country’s economy.

The Prime Minister’s 5F vision has inspired PM MITRA. Farm to fibre, fibre to factory, factory to fashion, and fashion to foreign are all included in the ‘5F’ Formula. The infrastructure for these parks will include an incubation centre, plug and play facility, developed factory sites, roads, power, water, and waste-water systems, common processing house, testing centres, workers’ hostels, logistics park, warehousing, and medical, training, and skill development facilities.

The textile parks would complement the Rs 10,638 crore production-linked incentive (PLI) plan for the man-made fibre and technical textiles segments, which is expected to attract Rs 19,000 crores of fresh investments and generate 7.5 lakh jobs. 

Employment generation and bridging the skill gap

While the textile industry is already one of the largest employment generators in the country, every $1 billion additional export in apparel manufacturing may create 1.5 lakh new jobs for people with diverse skills. As it would create massive employment opportunities for locals, states like Telangana have already started showing interest in establishing the textile park according to the Ministry of Textiles. 

Telangana’s textile sector has been booming, with numerous international corporations flocking to the state to set up operations. The Kitex Group, a major player in the textile sector, has also promised to invest Rs 2,400 crore in units in Warangal and Sitarampur.  It will begin operations in Warangal in November 2022, with 90 percent of the 22,000 employees being women, according to IT Minister K.T. Rama Rao. And the set up of textile parks will take the textile sector in the state to new heights.

Also read: NSN Weekly round-up on skills, education and training- 12102021 https://nationalskillsnetwork.in/oldsite/nsn-weekly-round-up-on-skills-education-and-training-12102021/

However, one must keep in mind the enormous skill gap that exists in the industry and start investing more in skill development as the skill composition of export-related jobs shifts toward high skill. 

The building of these parks, which include skill development facilities and training centres as part of their infrastructure, may help to bridge the skill gap in the textile sector. 

*IMPORTANT:

We have simply analysed the trends in order to keep our readers informed about the evolving skills industry in India. Please contact the people, organizations or industry bodies mentioned in the article if you want to learn more about the news.