Government launches textile policy for 2024 to boost growth; announces incentives | News about economics and politics

India has launched its Textile Policy for 2024, focusing on strengthening the textile sector with a series of financial incentives.

The policy highlights two main areas: technical textiles, including clothing and clothing, and various manufacturing processes, such as weaving and dyeing.

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The policy provides various financial support mechanisms to businesses, including capital subsidies ranging between 10% and 35% of eligible fixed capital investments, capped at Rs 100 million based on taluka and activity.

It offers credit-linked interest subsidies of 5% to 7% for 5 to 8 years, with an annual limit of 2% to 3%. Companies can receive Rs 1 per unit of electricity for 5 years, applicable to DISCOMs or renewable energy sources.

Salary assistance will be available to employees, ranging from Rs 3,000 to Rs 5,000 per month for women and Rs 2,000 to Rs 4,000 for men, depending on their roles. Additionally, self-help group (SHG) members will receive Rs 5,000 per month for training for 3 months and payroll support up to 25 percent of labor turnover for 5 years.

The policy also includes quality certification measures, energy and water savings and support for the acquisition of technology. The Textile Policy 2024 places a strong emphasis on labor intensive units, defined as new industrial units employing at least 4,000 individuals registered under the Employee Pension Plan. Fund Scheme (EPF) including a minimum of 1,000 women.

These units can receive capital subsidies of 25 percent to 35 percent, capped at Rs 150 million, and are eligible for credit-linked interest subsidies of 7 percent to 8 v for up to 8 years, with an annual limit of 3 percent. cent.

Additionally, they will benefit from electricity tariff subsidies with an annual maximum limit of Rs 15 million for the group’s captive renewable energy sources.

Salary assistance for female employees will range from Rs 3,000 to Rs 5,000, while male employees will receive support of Rs 2,000 to Rs 4,000 per month for a decade.

Self-help groups (GAS) will also receive similar financial support. Overall, the policy aims to strengthen India’s textile industry, promote employment – ​​especially among women – and increase competitiveness through various financial aid and technological support.