The new textiles minister Smriti Irani’s shift from the high-profile Human Resources Development (HRD) ministry would come with its own share of challenges. Though textiles might not get her the visibility as HRD , but the ministry’s role in fulfilling Prime Minister Narendra Modi’s one big promise of providing jobs to the youth is extremely critical. The textile industry is the second-largest employer in the country after agriculture. It employs about 32 million people and the government is banking on it to absorb millions of youth.

Firstly, Irani will have to see that the special package declared for the textiles sector last month falls into place. Approved last month by the Cabinet, the slew of measures aim to improve competitiveness and lead to greater production through a string of labor reforms which in turn are expected to generate one crore new jobs in the next three years.

However, the package is estimated to cost an estimated Rs 6,000 crores and the ministry will be hard pressed to show results soon. Of the package, nearly Rs 5,500 crores is for an additional 5 per cent duty drawback for the garments sub sector which industry insiders say have benefited the most. The seasonal nature of the garment industry has seen fixed-term employment being introduced.

Furthermore, the government will bear the entire employer’s contribution of 12 per cent under the Employers Provident Fund Scheme for new employees of garment industry earning less than Rs 15,000 per month for the first three years.

This is an increase from the present government provision of 8.33 per cent towards employer’s contribution provided under Pradhan Mantri Rozgar Protsahan Yojana.

All this has miffed industry players operating in other sub sectors. They have started clamoring that such benefits be extended to other sectors in the textile value chain as well.