Madhya Pradesh was always considered as one of the prime centres for the textile industry in the country. Textile mills of Madhya Pradesh especially mills of Malwa region enjoyed fame all over the country. Sarees of Chanderi and Maheshwar have established its identity around the world. Textile mills of Madhya Pradesh got affected by the technological changes in the last few decades and many mills of Malwa region faced closure on this account.
In order to revive the textile industry in Madhya Pradesh, the State Government undertook the challenge. An attractive and investors friendly policy was framed which resulted in development of textile industry speedily during the last few years reason being availability of skilled manpower and progressive policies of the State Government. In the last one decade Madhya Pradesh has emerged once again as one of the prime center for textile industry in the country. Prominent textile companies of the country like Vardhman, Grasim and Raymond have invested in the recent years in the State. Investment in textile industry has boosted exports and has given employment to many people of the state.
Terry towels manufacturing plant set up at Budhni Tahsil of Sehore district by the Trident group is accounted as the world’s largest plant. Trident group which started initially as an agro based manufacturer at Punjab, exports its product to over 100 countries at present. The Trident group started manufacturing cotton yarns to reach the global market. The group decided to establish terry towel manufacturing unit at Budhni because of the investors’ friendly environment and policies of Madhya Pradesh Government. The Group has set up the world’s largest and most modern plant at Budhni in the year 2009 with an investment of `4000 crore spreading over 850 acre land. The group now employs 30,000 people of the State.
It may be highlighted that an attractive package is being provided by the State Government to the investors to encourage textile industry.
The State Government provides an interest subsidy for five years at the rate of 5 per cent for textile projects and 7 per cent for composite textile projects. Moreover, the State Government is providing other incentives like entry tax exemption, VAT and CST assistance under the special textile package.
Huge employment opportunities can be generated through textile industry. The State has large number of cotton producing farmers and the cotton production in M.P. was 17.5 lakh bales in 2014-15. During the same time the cotton consumption by textile mills in the state was 518.3 Mn kgs. The State has 65 textile mills, 4,203 looms, 53,043 Power looms, 33,888 Rotors, 24,78,080 Spindles and 49 Spinning Units. Training to 25,000 youth has been imparted in textile technology and processes under Integrated Skill Development Scheme of Union Textile Ministry. MP has become the most attractive destination for textile mills and has attracted Vardhman, SEl, SRF and Vacmet India to establish their units.