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 such as silk, wool and cotton
12%
of India’s wool produced in Karnataka
20%
of nation’s garment production
2000+
garmenting units in Bengaluru
20%
of nation’s apparel exports
12%
of India’s wool produced in Karnataka
20%
of nation’s garment production
2000+
garmenting units in Bengaluru
20%
of nation’s apparel exports
Table of contents
Incentives
Credit linked capital subsidy (up to 30% of fixed assets)
Power subsidy up to INR 2/unit (for 5 years)
ESI & EPF subsidy for MSMEs (75% for 5 years)
Stamp duty exemption
Concessional registration charges (INR 1 per 1000)
50% capital subsidy on Effluent Treatment Plants (up to INR 5 Cr)
Wage subsidy for Garment industries for medium industries (up to 1500 per employee)
Credit linked capital subsidy (up to 25% of fixed assets)
Interest subsidy on Term loans (5% per annum for the first 5 years)
Power subsidy up to INR 2/unit (for 5 years)
Stamp duty exemption
Concessional registration charges (INR 1 per 1000)
50% capital subsidy on Effluent Treatment Plants (up to INR 5 Cr)
Wage subsidy for Garment industries (up to 1500 per employee)
In order to promote infrastructure development, incentives have been formulated for setting up greenfield and brownfield textile parks
Grant for greenfield parks (up to 40% of investment in infrastructure – except land, up to $5.7 Mn)
Grant for brownfield parks (up to $1.7 Mn)
New initiatives & opportunities
Technical Textiles
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
Private Textile 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
Man-made Fiber
State is a focusing on becoming a leading producer of man-made fibres (MMF). Currently 5% of India’s MMF and 10% of India’s fabric is produced in Karnataka
Attractive incentives
Attractive incentives offered to enterprises to setup or expand textile industries in Karnataka
Sector Champion
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.
Growth drivers
Strong Sourcing Base
Bengaluru is one of India's largest export-oriented clusters with 2000+ garmenting units. Major buying houses such as ZARA, GAP, H&M have their sourcing base in Karnataka
Handloom Clusters
Handloom clusters in Bagalkote, Bangalore Rural, Bangalore Urban, Bijapur, Chitradurga, Chamrajnagar, Dharwad and Gulbarga provide impetus to MSMEs
Plug and Play infrastructure
Spread over 48 acres, Karnataka’s first integrated textile park has been established in Doddaballapura. 83 acres earmarked for textiles in Chamaraja Nagar Industrial Park.
Skill development
Training more than 1,60,000 personnel; Presence of 10 garment training and designing centres promoted by ATDC; Fashion technology centre by NIFT.
