“The Knowledge Library”

Knowledge for All, without Barriers…

An Initiative by: Kausik Chakraborty.
22/09/2023 8:23 AM

“The Knowledge Library”

Knowledge for All, without Barriers……….
An Initiative by: Kausik Chakraborty.

The Knowledge Library

What is PM MITRA Scheme?

  • The scheme was announced in October 2021, and the parks will be established by 2026-27.
  • MITRA aims to enable the textile industry to become globally competitive, attract large investments, and boost employment generation and exports.
  • It will create world-class infrastructure with plug and play facilities to enable create global champions in exports.
  • It will be launched in addition to the Production Linked Incentive Scheme (PLI).
  • It will give our domestic manufacturers a level-playing field in the international textiles market & pave the way for India to become a global champion of textiles exports across all segments”.

Its implementation

  • An special purpose vehicle (SPV) owned by Centre and State Government will be set up for each park, which will oversee the implementation of the project.
  • The Ministry of Textiles will provide financial support in the form of Development Capital Support up to ₹500 crore per park to the Park SPV.
  • A Competitive Incentive Support (CIS) up to ₹300 crore per park to the units in PM MITRA Park shall also be provided to incentivize speedy implementation.
  • Convergence with other Government of India schemes shall also be facilitated in order to ensure additional incentives to the Master Developer and investor units.

Envisaged Benefits

  • The parks will boost the textiles sector in line with 5F (Farm to Fibre to Factory to Fashion to Foreign) vision.
  • The Centre envisages an investment of nearly ₹70,000 crore into these parks, with employment generation for about 20 lakh people.
  • The parks will function as centres of opportunity to create an integrated textiles value chain, right from spinning, weaving, processing, dyeing and printing to garment manufacturing, all at a single location.

Need for such scheme  

  • Textile industry is critical to India’s economy, employing 4.5 crore people and contributing 7% of GDP. Despite its potential, the industry is facing challenges that need to be addressed.
  • The unorganized textile industry in the country increased wastage and logistical costs, impacting the competitiveness of the country’s textile sector.

Challenges Faced by India’s Textile Industry

  • High input costs due to high taxes and tariffs, inadequate infrastructure, and a lack of skilled labor.
  • Competition from cheaper imports (ex. from Bangladesh) and a growing informal sector.
  • Environmental concerns related to the industry’s high water usage, pollution, and hazardous waste disposal.
  • The pandemic further disrupted supply chains and led to reduced demand.


  • PM MITRA Parks represent a unique model where the Centre and State Governments will work together to increase investment, promote innovation, create job opportunities and ultimately make India a global hub for textile manufacturing and exports.

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