The Steering Committee for Advancing Local Value-Add and Exports (SCALE), chaired by Mahindra & Mahindra MD and CEO Pawan Goenka, has recommended development of three-four integrated mega furniture hubs in proximity to ports for making India one of the key furniture exporters to the US, the EU and the Middle East. Already, the productivity-linked incentive scheme had been introduced for local manufacturing in this high potential sector.
India’s current share in the global trade of furniture is less than 1 per cent. The committee has said that this could be scaled up substantially over next decade with a mix of incentive schemes and fiscal measures for zero duty on imports of raw materials and clear and effective timber policy that expands the certified source of wood plantations in India.
In its presentation to Commerce and Industry Minister Piyush Goyal, the panel has set a target of doubling textiles exports to $80 billion in next five years. It has suggested creation of mega clusters to address cost competitiveness, productivity and lead time for sourcing, distribution, and logistics.
The SCALE committee is a joint government-industry panel that has been setup to look at ways to increase localisation, component manufacturing and employment in various industries like furniture, auto components, textiles and toys. The panel is tasked with fast-tracking growth of the Indian manufacturing sector.