Indian government will help top textile companies achieve sufficient size and scale to cater to worldwide demand. The aim is to create a few global champions especially in the areas of manmade fiber, technical textiles, apparel, fabrics and made-ups because of the substantial value addition in these sectors. They will be provided fiscal benefits and adequate infrastructure support. A policy is being finalised to address the lacunae under existing textile-related schemes. This includes significantly raising the cap on investment under the existing scheme that will prompt companies to set up mega manufacturing units in one place and undertake technology upgradation.

Currently, different subsidies are capped at lower investment levels, prompting companies to remain small and scattered. Textile parks will be set up with all forward and backward linkages available in the same place to make India cost competitive. The plan is to set up 1000-acre mega textile parks by providing land, electricity and water at reasonable cost. Preference will be given to coastal states and states with abundant water availability for such mega units.

Particular attention will be given to manmade fiber. In India, the share of cotton textiles is 60 per cent and the rest is synthetic or manmade fiber while the trend is the opposite elsewhere.