As per the Government FDI Policy for Textiles Sector, Textiles is open to FDI under automatic route. Nearly 80% of textiles units in India are MSME resulting in the fragmented nature of the industry. FDI inflows serve to augment domestic capital and help to promote industrial development thereby increase its production capacity, export competitiveness, employment opportunities across textiles sector. Such investments bring international best practices and latest technologies in various sectors leading to overall economic growth and development in the country. Information regarding development initiatives for the textile sector was given in a written reply by the Minister of State for Textiles Smt. Darshana Jardosh in Lok Sabha.
A statement on Financial Year wise overall FDI equity inflows and Country-wise FDI equity inflows from April 2016 to March’2021 of Textiles sector(including dyed, printed) is given at Annexure-I. Japan has invested the maximum amount US$ 381.47 million as FDI in textiles sector.
There are no FDI specific incentives for artisans, weavers and labourers provided by the Government, however, a statement on overall efforts made by the Government to protect interest of Artisans, Weavers and Labourers in textiles sector is at Annexure-II.
ANNEXURE-I
STATEMENT ON FINANCIAL YEAR WISE FDI EQUITY INFLOWS
FROM APRIL 2016 TO MARCH 2021
SECTOR TEXTILES (INCLUDING DYED, PRINTED)
| Sl No | Financial Year | FDI Equity inflow in US$ million |
| 1 | 2016-17 | 618.95 |
| 2 | 2017-18 | 454.45 |
| 3 | 2018-19 | 198.14 |
| 4 | 2019-20 | 323.52 |
| 5 | 2020-21 | 298.67 |
| Grand Total | 1,893.73 |
STATEMENT ON FINANCIAL YEAR WISE FDI EQUITY INFLOWS
FROM APRIL 2016 TO MARCH 2021
SECTOR TEXTILES (INCLUDING DYED,PRINTED)
| Sl No | Country | 2016-17 Apr-Mar | 2017-18 Apr-Mar | 2018-19 Apr-Mar | 2019-20 Apr-Mar | 2020-21 Apr-Mar | Total |
| FDI in US$ million | FDI in US$ million | FDI in US$ million | FDI in US$ million | FDI in US$ million | |||
| 1 | Australia | 0.87 | 2.18 | 0.01 | 0.04 | 0.00 | 3.10 |
| 2 | Austria | 0.05 | 0.12 | 0.09 | 0.10 | 0.09 | 0.46 |
| 3 | Belgium | 5.22 | 0.00 | 0.02 | 0.01 | 20.20 | 25.46 |
| 4 | Canada | 0.57 | 80.79 | 0.05 | 0.88 | 0.14 | 82.44 |
| 5 | China | 0.39 | 0.00 | 0.69 | 6.59 | 1.65 | 9.32 |
| 6 | Cyprus | 0.00 | 101.46 | 17.54 | 103.21 | 0.00 | 222.20 |
| 7 | Denmark | 0.00 | 0.00 | 0.00 | 0.01 | 0.00 | 0.01 |
| 8 | France | 2.19 | 0.13 | 0.07 | 0.02 | 0.26 | 2.66 |
| 9 | Germany | 23.13 | 5.53 | 4.66 | 2.57 | 1.00 | 36.90 |
| 10 | HongKong | 0.39 | 0.77 | 1.74 | 1.62 | 1.58 | 6.11 |
| 11 | Hungary | 0.00 | 0.00 | 0.00 | 3.22 | 0.00 | 3.22 |
| 12 | Israel | 1.72 | 1.52 | 0.94 | 0.00 | 3.26 | 7.44 |
| 13 | Italy | 11.67 | 0.28 | 14.13 | 12.16 | 24.53 | 62.78 |
| 14 | Japan | 49.98 | 50.75 | 0.41 | 71.77 | 208.56 | 381.47 |
| 15 | Lebanon | 0.00 | 0.00 | 0.10 | 0.00 | 0.01 | 0.11 |
| 16 | South Korea | 0.66 | 0.00 | 21.32 | 0.38 | 0.30 | 22.67 |
| 17 | Kuwait | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 18 | Luxembourg | 0.00 | 0.00 | 6.35 | 0.00 | 0.00 | 6.35 |
| 19 | Malaysia | 0.00 | 0.02 | 0.00 | 0.00 | 0.00 | 0.02 |
| 20 | Mauritius | 33.30 | 153.08 | 81.00 | 38.02 | 28.58 | 333.97 |
| 21 | Netherland | 223.04 | 1.10 | 1.16 | 53.23 | 5.78 | 284.30 |
| 22 | Norway | 0.52 | 0.00 | 0.00 | 0.00 | 0.00 | 0.52 |
| 23 | Oman | 0.00 | 0.25 | 2.09 | 0.00 | 0.00 | 2.33 |
| 24 | Poland | 0.00 | 0.19 | 0.15 | 10.57 | 0.06 | 10.97 |
| 25 | Qatar | 0.00 | 0.00 | 0.05 | 0.00 | 0.00 | 0.05 |
| 26 | Russia | 0.00 | 0.00 | 0.12 | 0.00 | 0.00 | 0.13 |
| 27 | Saudi Arabia | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 28 | Singapore | 190.51 | 0.70 | 6.93 | 9.00 | 0.23 | 207.37 |
| 29 | Spain | 5.67 | 0.00 | 1.82 | 0.00 | 0.06 | 7.55 |
| 30 | Sri Lanka | 0.11 | 0.96 | 0.00 | 0.00 | 0.00 | 1.07 |
| 31 | Sweden | 0.00 | 0.00 | 0.11 | 0.00 | 0.00 | 0.11 |
| 32 | Switzerland | 0.00 | 0.88 | 0.03 | 0.03 | 0.00 | 0.94 |
| 33 | Taiwan | 0.23 | 0.00 | 0.00 | 0.00 | 0.00 | 0.23 |
| 34 | Thailand | 0.09 | 0.17 | 0.00 | 0.00 | 0.00 | 0.25 |
| 35 | Turkey | 0.05 | 0.00 | 7.11 | 0.00 | 0.00 | 7.16 |
| 36 | UAE | 3.07 | 8.15 | 9.04 | 2.29 | 0.54 | 23.09 |
| 37 | United Kingdom | 0.16 | 0.94 | 0.99 | 0.43 | 0.10 | 2.61 |
| 38 | U.S.A | 64.94 | 43.28 | 14.22 | 4.99 | 1.02 | 128.45 |
| 39 | British Virginia | 0.00 | 0.00 | 0.05 | 2.38 | 0.71 | 3.13 |
| 40 | Vietnam | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 41 | Kenya | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 42 | Egypt | 0.43 | 0.74 | 0.16 | 0.00 | 0.00 | 1.32 |
| 43 | Virgin Islands(US) | 0.00 | 0.47 | 0.00 | 0.00 | 0.00 | 0.47 |
| 44 | Seychelles | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 45 | SAMOA ISLANDS | 0.00 | 0.00 | 4.98 | 0.00 | 0.00 | 4.98 |
| 46 | Niue Island | 0.00 | 0.00 | 0.01 | 0.00 | 0.00 | 0.01 |
ANNEXURE-II
Efforts made by the Government to protect interest of Artisans, Weavers and Labourers in textiles sector
National Handloom Development Programme and National Handicrafts Development Programmeaim at holistic development of artisans/weavers through integrated approach.
Under various schematic interventions for handloom workers, financial assistance is provided to the eligible handloom agencies/weavers for raw materials, purchase of upgraded looms & accessories, design innovation & product diversification, infrastructure development, marketing of handloom products in domestic as well as overseas markets, Mudra loans at concessional rates, etc. Further, to overcome the challenges being faced by the workers, the Government has taken following steps for their welfare and to promote handlooms across the country:
- To support the handloom sector and to enable wider market for handloom weavers, steps have been taken to on-board weavers on Government e-Market place (GeM) to enable them to sell their products directly to various Government Departments and organizations. So far about 1.50 Lakh weavers have been on-boarded on the GeM portal.
- To enhance productivity, marketing capabilities and ensure better incomes, 125 Handloom Producer companies have been formed in different States.
- Under Concessional Credit/Weaver MUDRA Scheme, margin money assistance at 20% of the loan amount subject to a maximum of Rs. 10,000/- per weaver, interest subvention upto 7% and credit guarantee fees on loans for a period of three (3) years are given.
- Design Resource Centres (DRCs) have been set up in Weavers’ Service Centres (WSCs) at Delhi, Mumbai, Varanasi, Ahmedabad, Jaipur, Bhubaneswar and Guwahati, through NIFT with the objective to build and create design-oriented excellence in the Handloom Sector and to facilitate weavers, exporters, manufacturers and designers access design repositories for sample/product improvisation and development.
- To promote marketing of handloom products, Handloom Export Promotion Council (HEPC) has been organizing International Fairs in virtual mode. During the year 2020-21, 12 handloom fairs were organized in virtual mode. Besides, domestic marketing events were also organized in different parts of the country for the weavers to market and sell their products.
Under “National Handicraft Development Programme [NHDP]” and Handicrafts Cluster Development Scheme [CHCDS], artisans of handicraft sector are provided sustainable livelihood opportunities. to the artisans throughout the country.
NHDP has following components:
- Base Line Survey & Mobilization of Artisans under AmbedkarHastshilpVikasYojana,
- Design & Technology Up gradation,
- Human Resource Development ,
- Direct Benefit to Artisans,+
- Infrastructure and Technology Support,
- Research and Development,
- Marketing Support & Services.
The CHCDS has following components:
- Mega Cluster,
- Special projects under Integrated Development and Promotion of Handicraft (IDPH).
Fund of Rs 125.13 Crore Allocated by Government for Textile Excellence Centres
Under the Technology Mission for Technical Textiles, Government has extended financial support towards the creation of infrastructure of eight (8) Centers of Excellence (CoEs) in various textile research and academic organizations. This information was given in a written reply by the Minister of State for Textiles Smt. Darshana Jardosh in Lok Sabha. The details of these organizations and the amount of funding are given below:- (Rs in Crore)
| S. No | Name of Organisations | Amount of financial support |
| 1 | Synthetic & Art Silk Mills Research Association (SASMIRA) (CoE : Agrotech) , Mumbai, Maharashtra | 11.77 |
| 2 | Wool Research Association (WRA) (CoE: Sportech), Thane, Maharashtra | 22.95 |
| 3 | Bombay Textile Research Association (BTRA) (CoE: Geotech), Mumbai, Maharashtra | 6.77 |
| 4 | DKTE Society’s Textile & Engineering Institute (CoE: Non wovens), Ichalkaranji, Maharashtra | 23.38 |
| 5 | Northern India Textile Research Association (NITRA) (CoE: Protech), Ghaziabad, Uttar Pradesh | 9.51 |
| 6 | South India Textile Research Association (SITRA) (CoE: Meditech), Coimbatore, Tamil Nadu | 10.96 |
| 7 | PSG College of Technology (CoE: Indutech) , Coimbatore, Tamil Nadu | 18.86 |
| 8 | Ahmedabad Textile Industry’s Research Association (ATIRA) (CoE: Composites), Ahmedabad, Gujarat | 20.93 |
| Total | 125.13 | |
