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India's PM MITRA parks stall amid rising global competition

09 Dec '25
3 min read
India's PM MITRA parks stall amid rising global competition
Pic: Shutterstock.com

Insights

  • India's PM MITRA parks, launched to build world-class integrated textile hubs, remain stalled nearly four years on, with most sites still in paperwork stages and only Madhya Pradesh completing plot allocation.
  • Delays in appointing master developers and unclear execution roles persist even as Vietnam, Bangladesh, Turkiye, and Cambodia accelerate capacity.
India’s Prime Minister Narendra Modi envisioned PM MITRA (Mega Integrated Textile Region and Apparel) Parks to provide globally competitive, integrated manufacturing hubs and position the country as a strong sourcing alternative for brands pursuing a “China-plus-one” strategy. However, nearly four years after the scheme’s launch, on-ground progress remains slow. While seven locations were finalised in 2022 with land earmarked for development, most parks have yet to advance beyond paperwork and procedural approvals.

Among the approved sites, Madhya Pradesh is the only state where plot allocation has been completed. Maharashtra has initiated the process, whereas Gujarat—despite announcing tenders for water infrastructure—remains largely at the documentation stage. Uncertainty continues over whether development responsibility lies with state agencies or private developers, further contributing to delays. Estimated capital allocations vary widely: Madhya Pradesh at approximately ₹14,099 crore (~$1,566.9 million), Gujarat at ₹13,084 crore (~$1,454.1 million), Uttar Pradesh at ₹5,270 crore (~$585.7 million), Telangana at ₹3,862 crore (~$429.2 million), Maharashtra at ₹3,245 crore (~$360.6 million), Karnataka at ₹1,700 crore (~$188.9 million), and Tamil Nadu at ₹1,231 crore (~$136.8 million). Yet visible construction remains limited despite investor interest and earlier commitments.

Industry voices confirm that key operational steps are still pending. Commenting on the status, former President of Southern Gujarat Chamber of Commerce and Industry, Ashish Gujarati, told Fibre2Fashion, “They have not yet appointed the master developer. After the appointment of the master developer, the booking application will start. Then the production deadline will be set.” The statement reflects a sentiment shared across the textile value chain—that until governance and execution frameworks are clearly assigned, large-scale rollout will remain stalled.

These delays come at a time when India’s textile and apparel sector is facing significant competitive pressure globally. Countries such as Vietnam, Bangladesh, Turkiye, and Cambodia continue to strengthen their manufacturing ecosystems, accelerate compliance transitions, and build faster, digitally enabled supply chains. The global shift towards sustainability, shorter lead times, and integrated compliance frameworks has further intensified competitive benchmarks.

Meanwhile, India’s export performance has remained uneven, affected by production fragmentation, logistics bottlenecks, higher operating costs, and slower responsiveness to evolving regulations, including EU Digital Product Passport requirements and traceability mandates. The PM MITRA model—built around plug-and-play infrastructure, scale economics, and integrated value chains—was expected to address these gaps.

Industry stakeholders now warn that unless implementation accelerates, India risks missing a strategic opportunity amid global supply-chain realignment. Turning intent into delivery—roads, utilities, factory shells, common processing zones, compliance support, and workforce training—will determine whether PM MITRA infrastructure becomes a transformative advantage or a delayed policy promise.

With sourcing models shifting and competitive windows narrowing, the next 12–18 months will be critical for India’s position in the global textile landscape.

ALCHEMPro News Desk (KUL)

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