The textile industry in Rajasthan has attained the top position for transforming investment plans into action, even surpassing the rate of its closest competitor — solar power sector – that has been vying for the position for quite some time now.
The textile industry has earned a bad name for polluting the environment, but that did not stop the Rajasthan government from initiating efforts to boost the textile industry. This has led to signing of investment proposals for 23 textile projects, of which 18 projects have already got approvals. A few of them have actually started the production too. A VAT exemption of 50 per cent on purchase of raw materials and 50 per cent exemption of entry tax on capital goods have been extended to the investors.
While speaking to a national daily, Industries Minister Gajendra Singh Khimsar, said, “Vilified for polluting the environment, the sector needed modernization and new technologies to keep the rich textile heritage alive, and also build on the brand image. The state government has not only addressed those concerns, but also given a very encouraging policy support unmatched anywhere in the country. The high conversion rate is the result of the confidence the government generated among the investors.”
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Rajasthan Textile Sector employs nearly 7 lakh people and contributes 17 per cent to the state’s exports. So in a bid to build up Resurgent Rajasthan, the government is making every effort to uplift the textile sector while giving interest subsidy of 5-7%, that very few sectors enjoys. Given the significant contribution to the state’s GDP, it has been accorded with the top priority status.
L C Jain, Additional Director, Industries Department, said “As most of the investors have land already in their possession, they have started construction of the units. In some cases, machinery have been installed. In fact, companies like Nitin Spinners, RSWM, and Sudiva Spinners have started production.”
