The 2009-14 textile policy of Pakistan had allotted Rs 118 billion for lower interest subsidy for technology upgradation. But the textile industry has yet to receive the funds. India introduced the Technology Upgradation Fund Scheme in April 1999. Up to January, 31, 2013, the subsidy amount came to $2.63 billion, which led to an investment of over $39 million in textile machines.
The Indian scheme of integrated textile parks, where entrepreneurs set up their units in these parks, has caught the fancy of Pakistani businessmen. They want similar textile parks and have urged the textile ministry to arrange land for this purpose. They feel that for instance in 25 acres of land, 200 spinning, weaving and processing units can be established.
With Indian textiles strengthened by a load of subsidies, it will be difficult for Pakistan to compete in the textile sector despite being granted GSP plus status. India gives its exporters major incentives for the introduction of new products and markets. The incentive (subsidy) under the focus market scheme currently stands at three per cent. Besides, the Indian government provides institutional support to textile exporters through different textile subsector-specific export promotion councils and textile research centers.
