Tamil Nadu, India’s leading textile and apparel producing state, has announced its Industrial Policy 2021 and MSME Policy 2021.
The policies have continued keeping textiles in the focus and also intend to meet global standards for ease of doing business.
Notably, Tirupur (India’s number one cluster in knitted garments) will be benefitted through the Industrial Housing projects. These projects will be developed through PPP models.
Through “Think MSME First”, priority is given for the development of MSMEs to ensure a level playing field under the schemes, laws and procedures applicable to them.
It is insisted in the policies that MSME department will strengthen the Cluster Development Initiative and proposal to extend extra support to clusters.
The capital subsidy, incentive for scaling up, Interest Subsidy Scheme for Technology Upgradation/CGTMSC Scheme, NEEDS, including Upgradation of Upskilling and Reskilling of workers are some of the attraction of these policies.
Apparel industry of the state has welcomed these steps. Raja M. Shanmugham, President, Tirupur Exporters’ Association (TEA), believes that these policies will pave way for the growth of industries in Tamil Nadu.
Raja said that Industrial Housing projects is a need of hour for Tirupur cluster.
“The incentives provided to MSMEs will help in the growth of Tirupur knitwear sector. Incentives especially Equity participation through a designated Fund Management Company (FMC) and 20 per cent of the total expenditure incurred on SME IPO will help for the speedy growth of the units,” he said.
It is also important to state here that the incentives will encourage more start-up units and it will be utilised by Tirupur knitwear sector’s stakeholders units.