India successfully upgraded its cotton value chain, focusing on the modernization of the spinning, weaving and garment sector. Further, India reduced its cotton exports and enhanced exports of higher value added products. Investments in downstream industries of the apparel value chain, such as weaving, shall ensure that Indian cotton yarn is processed domestically and finished products are exported.
With UNIDO's institutional support, India saw the introduction of bio-safety mechanisms in the cotton production and the establishment of the Technology Mission on Cotton. These will help to:
- Increase the income of cotton farmers;
- Ensure availability of cotton quality in required quantities;
- Promote research and development activities in cotton cultivation;
- Modernize textile mills;
- Improve the quality of cotton;
- Produce uncontaminated cotton in compliance with international standards.
Furthermore, the establishment of Technology Upgrading Fund Programmes will help modernize the cotton-textile value chain through the introduction of appropriate machinery. It will also introduce new fiscal policies to stabilize the local macroeconomy rationalization.
Key strategic policy measures introduced by the Government to promote the cotton value chain:
- Progressive reduction of import duties on textile machineries
- New indirect taxation system for textile related products and activities
- Modern textile infrastructure for small and medium enterprises (SMEs) within the Public-Private Partnership framework
- Power loom promotion in the processing and finishing sector supported by Technology Upgrading Fund Programmes
- Modern textile infrastructure for SMEs within the Public-Private Partnership framework
- High educational standards to train a skilled labour force within the Public-Private Partnership framework
- Development of Indian apparel brands with the Public-Private Partnership framework