Goyal Announces Formation of ESG Taskforce and Outlines Plans For PLI In Textile Industry

Union minister Piyush Goyal announced on Saturday that the government will establish an Environmental, Social, and Governance (ESG) taskforce specifically for the textiles sector. This move aims to improve the credibility of India's sustainability commitments and ensure that the textiles industry aligns with environmental, social, and governance standards.

The Minister of Commerce & Industry and Textiles confirmed in a statement to reporters that the Production Linked Incentive (PLI) scheme for the textile sector will soon be finalised and presented for approval at higher levels. Additionally, an ESG taskforce will be established to address environmental, social, and governance concerns within the textile industry. This decision comes as exporters have noted that sustainable products are gaining credibility in the market, with the potential to fetch double the value compared to traditional products.

"We have discussed that textile will also contribute to that and this group will come up with suggestions which will help the textile sector become more sustainable in their current operations and also look for more opportunities in sustainable textiles," said Goyal.

Goyal, who also holds Consumer Affairs and Food & Public Distribution, stated that the government has engaged in in-depth discussions and extensive consultations with stakeholders regarding the PLI scheme in the textile sector. He was present at a 'Chintan Shibir', a brainstorming session on technical textiles, and also participated in the "Saurashtra Tamil Sangamam" event held in Somnath.

"At the Chintan Shibir, I have exchanged views about how we can expand, promote and support the industry to grow further. One of the areas of discussion was the PLI scheme, and I am quite confident that very soon we will be able to finalise the contours of the scheme and take it up for approval at the higher level," he said.

He stated that the decrease in Indian yarn exports is actually positive for the country, as it will create more chances for Indian startups to add value to their products domestically. In addition, he mentioned that the seven PM MITRA Park sites, which were recently announced, will aid in fulfilling PM Modi's vision of the 5Fs - from farm to fibre then to factory, factory to fashion and then to foreign markets.

He explained that the scheme aims to address the issue of fragmented approach in the sector by consolidating all aspects of the 5Fs (Food, Fuel, Fiber, Fodder, and Forest) in one place. The sites for the PM Mitra Parks have been identified and Memorandums of Understanding (MoUs) will be signed with the beneficiary states. The selection of master developers will be done through a transparent process. The seven states where PM Mitra Parks will be established are Gujarat, Tamil Nadu, Madhya Pradesh, Uttar Pradesh, Telangana, Maharashtra, and Karnataka.
"We will try for fast development to provide 5Fs available at one place with all the facilities to reduce our logistics cost, increase productivity and production in India at a large scale, and meet the demands for the country and the world," the Union minister said.

Goyal claimed that both the local and foreign markets in India are experiencing a considerable increase in demand for yarn and completed goods. According to him, producers will choose to sell the yarn in India, where it will be processed all the way up to the stage of being made into a garment, if the Indian market offers a better price.

"And that value addition is good for India. So wherever possible, value addition will create jobs, and give opportunities to our entrepreneurs, our startups. And therefore, if at all yarn export reduces, it is a good sign for us," Goyal said.

"Readymade garments, and finished value-added products increasing is really a strength of India which we want to encash. Similarly, our handicrafts and handlooms are also showing very good traction both in India and internationally," he said.

According to a statement from the textiles ministry, Goyal stressed the necessity of developing certification systems for organic cotton and asked industry to actively support efforts to encourage cotton farmers to produce organic cotton.
He assessed the status of efforts pertaining to the cotton value chain and suggested that a working group of specialists, representatives from business, the relevant ministries, and other interested parties be established in order to develop a thorough action plan to increase the production of organic cotton using a cluster-based strategy.