Power loom units in India will get a subsidy for upgradation. There will be no restrictions on the number of units eligible for receiving these benefits. These benefits will be given across the board to improve the quality of the product.

Of the over 20 lakh looms, only 1.25 lakh are fully mechanized. At present only a maximum of eight power looms can receive a subsidy of Rs 15,000 each under the scheme, which is also available only in select weaving clusters, like Erode and Salem. The idea is to help poor weavers and make weaving contribute significantly to the growth of the Indian textile industry.

Since 95 per cent of the textile machinery is being imported, there are lots of opportunities for entrepreneurs and the demand for looms can be met by domestic players. Though weaving is one of the important sectors for the Indian textile industry, it has not been given due attention unlike the spinning sector. The weaving sector consists of fragmented, small and often un-registered units that invest low amounts in technology and practices especially in power loom, processing, handloom and knits.

India has the world’s largest installed base for looms. The power loom sector produces more than 60 per cent of the cloth in India.