Post studying textile policies of Maharashtra and Gujarat, the Karnataka government decides to revamp its state with modified policies to enhance sectors such as spinning, weaving, knitting, processing, garmenting, and other support ancillary activities like textile machinery manufacturing. It is primarily the Textile Policy 2013-18 that has been changed to strengthen textile value chain activities and to boost technical textiles. The modified policy will also facilitate an ambitious programme for geographical dispersion of textile units.
Reacting to the policies, the state have jumped on a textile industry investment overdrive that is actively promoting investments in textile parks, mega projects, integrated units and MSME units. According to a government official, the state is targeting Rs 8000 crore of investment by 2018 with an employment potential of 4 lakh.
Under the modified policy, a two-pronged approach seeks to strengthen the existing value chain and fill the gaps in creating the facilities for value chain activities. The government is offering a basket of incentive for credit linked subsidy, power subsidy, ESI/EPF reimbursement, entry tax and stamp duty reimbursement, ETP and interest subsidy.