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Under the technology upgrade fund plan, the government will provide subsidies for textile companies to purchase new machines and equipment. In the 2008/2009 fiscal year budget, the government’s funding for the plan increased by 188% from the previous fiscal year to Rs 31.4 billion.
India will introduce a textile industry subsidy program
The Indian government has promised to launch a subsidy program to help the textile industry, which has been hit hardest by the financial crisis, out of the woods in the near future. The government will allocate 254.6 billion rupees (approximately 540 million U.S. dollars). The plan will be listed under the existing technology upgrade fund program and will be the largest single subsidy program under the program. The government promised to pay 12,514 beneficiary companies with a subsidy through bank accounts.