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Textile and Apparel
Karnataka is a leading destination for Textile and Apparel sector in India and is also known as the Garment Capital of India. The state also is a leading producer of raw materials comprising 49% of India’s silk, wool and 6% of India’s cotton, 5% of India’s Man Made Fibres (MMF) and 10% of India’s fabric.
12%
from Karnataka
20%
production
2000+
Bengaluru
20%
of nation’s apparel exports are from Karnataka
Sector Incentives and Policy
Textile and Garment Policy 2019-24 incentives
| Particulars | Incentives |
|---|---|
| Capital Investment Subsidy | 25% (without cap) on fixed assets like Land, Building, Dormitory, ETP, Machinery etc. |
| Interest Subsidy | 5% on term loan for 5 years |
| Stamp Duty | 100% reimbursement |
| Power Tariff subsidy | Up to INR 2 for 5 years |
| Wage Subsidy | Up to INR 3000 per employee per month for 5 years2 |
| ESI and EPF Subsidy | 75% reimbursement for 5 years |
| Industrial Infra | 40% grant support for fixed capital investment in factory buildings & common infrastructure + 50% subsidy on fixed capital investment in CETP & CSTP up to INR 5 Cr |
- Not applicable for garment units 2. Applicable only for direct employment of domiciles
Note: CETP – Common Effluent Treatment Plan, CSTP – Common Sewage Treatment Plant
New initiatives & opportunities
North cluster
India’s first private Aerospace SEZ with ~250 Acres area situated in Belagavi for A&D manufacturing and assembly
Central cluster
Aerospace research and innovation Centre collocated with IISc at Chitradurga. Flying training school at Davangere
South cluster
Hi-tech Aerospace and Defence park with ~1000 Acre area situated in Devanahalli, Bangalore for access to vast A&D ecosystem in Bangalore
MRO
World class Maintenance, Repair and Operations (MRO) facility planned in Bangalore, Mysuru to leverage recently announced tax rationalization
Initiatives and Growth Drivers
Technical textiles
The state is emerging as a strong consumption base for technical textiles – especially in high value segments such as Mobil-Tech, Pro-Tech and Infra-Tech.
Industrial Parks
Karnataka encourages private participation in setting up industrial parks. Binary Apparel Park at Hiruyur and Kurane Textile Park at Nipani have been developed by private players.
Textile Parks
Integrated textile park in Doddaballapura, SEZ in Hassan, Shiggaon Textile Park and facilities in Chamarajanagar Industrial Area.
Leading Fashion Technology Institutes
NIFT and multiple garment training centers ensure a continuous supply of skilled labor, making Karnataka a preferred destination for textile investments.
Sector Champions
Siva Ganapathi
Managing Director
Gokaldas Exports Limited
Established in 1979, Gokaldas Exports (GE) has evolved to beocme a one-stop solution for some of the world’s most recognized apparel brands. With an annual turnover of over USD 200 Million, GE is India’s largest manufacturer an exporter of apparels. Today, more than 25,000 people across 20 production units work together to ensure that whatever the next global fashion, Gokaldas Exports is ready for it.
Salil Gupte
President
Boeing India
[email protected]
Boeing has been a strong partner of India’s aerospace sector for almost eight decades, both as the mainstay of India’s commercial aviation sector as well as an important partner in the mission readiness and modernization of India’s defense forces. Headquartered in Delhi, Boeing’s India operations include field service offices in Mumbai, Hindan, Rajali and New Delhi, and a rapidly growing Boeing India Engineering & Technology Center (BIETC) in Bengaluru and Chennai. The upcoming Boeing engineering and technology campus in Bengaluru, Karnataka will conduct core engineering and research for Boeing’s iconic products as well as future platforms. The campus will be one of the largest for Boeing, outside of the US.
Sector Contact
Email: [email protected]
Phone: 9880922077
