Ludhiana: Industrialists meet Textile Minister, seek subsidies on par with other states

Members of several industrial organisations met Giriraj Singh, the Minister of Textiles, Government of India, here to shed light on various issues being faced by them.

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The minister had an interaction with the members of Association of Trade and Industrial Undertaking (ATIU) and CICU, and discussions were held to uplift the textile industry.

Meanwhile, the ATIU requested the minister to grant equal textile industry benefits to the state’s weaving, knitting and processing sector.

Pankaj Sharma, president of ATIU, said a memorandum was submitted to the minister to draw the attention of the government for the urgent need for equal incentives and support for Punjab’s textile industry, particularly in weaving, knitting, and processing, which were key contributors to employment and economic growth in the state.

The association members said the state’s textile sector, which had strong hubs in Ludhiana, Amritsar, played a vital role in India’s domestic and export markets. However, despite their industrial potential, Punjab had not received the same level of benefits as states such as Maharashtra, Gujarat, and Tamil Nadu in terms of capital and interest subsidies (Punjab offered only 5 per cent for MSMEs while Maharashtra and Gujarat provided up to 7 per cent).

Furthermore, the capping is Rs 10 lakh, which made it practically nothing, Electricity duty exemptions (Punjab’s units faced high energy costs, unlike that of Maharashtra and Gujarat, which enjoyed subsidised tariffs), textile parks and processing units (Maharashtra and Gujarat had multiple state-funded integrated textile parks while Punjab lacked sufficient infrastructure support), etc.

The members also said Punjab faced additional economic challenges due to proximity to the international border, which affected industrial expansion and export competitiveness. Despite this, textile MSMEs in Punjab received limited financial assistance and policy support compared to other textile hubs.

The CICU president, Upkar Singh, said various issues were discussed with the minister.

Among the major demands were the starting of the ATUFS scheme, which was suspended; reduction in high bank rates that were burdening the industry, ban on duty free imports to protect local manufacturers and the Central Government’s support for the construction of hostels for labour and skill-training centres.