Six more textile clusters have been proposed by Union Finance Minister, Arun Jaitley, who presented the Narendra Modi Government's first budget. Around Rs 200 crore has been set aside for the purpose.
The textile clusters would be set up at Rae Bareily, Lucknow, Kutch, Mysore, Bhagalpur and Tamil Nadu.
The country boasts of more than 70 textile and clothing clusters, comprising about 80 per cent of total production. There are 39 powerloom clusters and 13 readymade garment clusters in India.
Bhiwandi near Mumbai and Malegaon in Maharahstra are the two largest powerloom clusters. The major readymade garments clusters are located in Delhi, Mumbai, Gurgaon, Nagpur, Madurai and Salem.
While Maharashtra has over 10 textile clusters, the other major states in terms of number of clusters are Tamil Nadu, Andhra Pradesh, Karnataka, Kerala and Uttar Pradesh, among others.
Textile plays a major role in the Indian economy. It accounts for 27 per cent of foreign exchange inflows and contributes 14 per cent to industrial production and 4 per cent to the gross domestic product (GDP). With over 45 million people, the industry is one of the largest sources of employment generation in the country.