Jharkhand Textile and Apparels Sector Policy

Textile and Apparels Sector Policy

The textile sector makes a significant contribution to the Indian economy: 2% to the GDP, 12% to export earnings, 7% to industrial production and employs 4.5 crore people directly and higher numbers indirectly.

Jharkhand Government had announced the Textile and Apparel Policy, 2016 to strengthen the entire value-chain of the textile industry through capital infusion, technology transfer, skill up gradation and handholding. The policy was appreciated by all the stakeholders and empirical evidence of its outcome has been overwhelming. Since the inception of policy in 2016, 11 units have started operations, more than 40 units have shown interest and still receiving an encouraging response. The textile industry has led to employment generation largely among women leading to a reduction in distress migration and human trafficking.

Jharkhand is being developed as a textile hub. There has been phenomenal growth in Sericulture Sector and the state has the highest production of Tasar silk in India. Jharkhand primarily exports Tasar silk to the US, the UK, Germany, France, Turkey, Japan, Australia, Sweden and Switzerland. In addition to silk weaving, the State has taken adequate measures for the revival of cotton wool weaving.

The Government of Jharkhand is committed to upgrade the facilities in Industrial Training Institutes for apparel production. An autonomous institute of quality apparel training will be set up on its own or in joint venture/collaboration with multiple agencies/institutes. Financial assistance will be extended to Jharcraft and /or any reputed organization/institute which has run and managed such an institution in the state.

Networking of training institutions will be done by the Directorate of Handloom and Sericulture and a detailed database will be maintained. The Government intends to notify all Textile and Apparel Parks as Public Utility Services.

Government of Jharkhand seeks to promote interaction between the tribal artisans of Jharkhand and the mainstream designers from reputed design organizations considering the richness of Jharkhand Artisans in handicraft. The aim of Government is to expand the product range and designs. The synergy between these two can generate marketable ducts of art and handicraft for the top-end global market. There are more than 40 types of handicrafts such as Ratha, applique, satin stitch, tie and dye, terracotta, tasar print, papier-mache, dhokra, making agarbatti or incense-sticks, bamboo and leather craft, patkar and jadopatiya painting, tribal Jewellery, pearl jewellery and paper packaging are made in different parts of the state.

Fiscal Incentives for Textile, Apparel and Footwear Units (as per the Textile, Apparel and Policy 2016)

Information of the incentives and other policy initiatives for Textiles and other related industries are detailed out in “Textile, Apparel and Footwear Policy 2016”. The Policy increased the level of employment, attracted greater investments and has helped in combating distress migration especially for the woman of the state.

It is proposed that the incentives offered to Textiles, Apparel and Footwear Industries are extended to the Handicrafts Industry. In addition, the units engaged in Handicrafts are eligible to receive a reimbursement of 50% of the contribution to the wage rate per local employee per month (local employee here indicates the employee who is a domicile of Jharkhand) for a period of 5 years. The unit needs to have a minimum of 70% of the local employees engaged in the core process for availing this incentive.