India’s mega textile parks are yet to take off but the Centre plans to build more
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The Indian government has proposed to set up mega textile parks in challenge mode, even as similar programmes have, in the past, failed to meet their investment and employment generation targets.
India’s textiles sector contributes to 2.3% of the gross domestic product and with 45 million direct workers, is the country’s second largest employer, after agriculture. About 80% of its capacity lies in micro, small and medium enterprises.
When unveiling the 2026-’27 budget earlier this year, finance minister Nirmala Sitharaman proposed setting up mega textile parks in challenge mode. But she had made a similar announcement five years ago at the peak of the Covid-19 pandemic, for setting up seven textile parks with a three-year timeline.
In March, the government told the Lok Sabha that it has finalised seven textile parks under Pradhan Mantri Mega Integrated Textile Region and Apparel. Today, approach roads are being constructed in three of the proposed parks: in Dhar (Madhya Pradesh), Warangal (Telangana), and Kalaburgi (Karnataka), while two parks in Virudhunagar (Tamil Nadu) and Amravati (Maharashtra) are inviting potential allottees.
Two others, in Navsari (Gujarat) and in Lucknow (Uttar Pradesh), saw their bid documents being approved by the Public Private Partnership Appraisal Committee. The private developers awarded these projects will go on to create integrated textile parks under the Design, Build, Finance, Operate and Transfer...