The Jharkhand Government has started working on a new textile policy after the expiry of its earlier one under the Industrial Investment Promotion Scheme. The move aims to draw new investors to the State’s textile sector. Officials from the Department of Industries said that the earlier policy, though well-intentioned, failed to bring in new players to Jharkhand’s textile ecosystem. Most of the expansion occurred through existing companies, resulting in limited economic impact for the State. The Chamber of Commerce has written to the Chief Minister and the Industry Secretary, urged that the upcoming policy be designed to attract fresh companies rather than mere branch setups. It also called for the creation of more textile parks to provide an industrial base for investors.
The Government’s drafting committee is expected to consult industry stakeholders before finalizing the new framework. Officials said the State is also exploring public-private partnerships (PPP Model) to develop integrated textile parks and promote handloom and silk based industries in rural districts. Once the new policy is implemented, Jharkhand hopes to position itself as a competitive destination for textile manufacturing and exports in eastern India.
Jharkhand Units to Consider Shift to Odisha
A combination of U.S. tariffs and a poorly structured State textile policy has put Jharkhand’s textile industry under strain, prompting several key manufacturers to plan relocation to neighbouring Odisha. Industry representatives say Odisha’s investor friendly policies and superior infrastructure have made it a far more attractive destination for textile operations than Jharkhand. According to the Jharkhand Chamber of Commerce, four major textile units including Kishore Exports, Shahi Exports, and Urban Pvt Ltd, which were set up during former Chief Minister Raghubar Das’s tenure in areas like Irba and Khelgaon, are preparing to shift their bases to Odisha. Chamber president Aditya Malhotra said the move reflects deep frustration among investors. “This is a worrying situation. In a time of fierce competition, Jharkhand’s outdated policy is driving away its industries,” he remarked.
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Other States Leading the Textile Race
Other states have made rapid progress in comparison to Jharkhand. Gujarat has over 100 operational textile units contributing an annual investment of nearly Rs. 8000 to Rs. 10000 crore and generating thousands of jobs. Odisha has recorded investments of around Rs. 4000 crore in handloom, silk, and apparel units under its new Textile and Apparel Policy. Tamil Nadu, driven by its strong infrastructure and proactive approach, has become India’s largest apparel exporter, with investments worth Rs. 2000 crore and the announcement of nine mega textile parks. Uttar Pradesh, leveraging the Prime Minister’s “One District, One Product” (ODOP) initiative, has also given a major push to textile and cotton based industries across districts.
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Need for Competitive Policy Framework
Industry experts believe Jharkhand must design a policy that competes with other progressive States by offering land, infrastructure, power subsidies, and investment linked incentives. A senior Chamber representative remarked that the new textile policy should not merely replicate old models but focus on building textile clusters and encouraging private textile parks. “Only a policy that combines industrial ease, fiscal incentives, and employment linkage can transform Jharkhand into a textile investment hub,” the representative added.
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