At one time the name of Indore-Ujjain were very prominent in Textile Industry of the country along with the Kanpur, Surat, Ahmedabad, Mumbai and Chinnai (Madras) centres. But in the decade of 1950 most of the textile mills became sick units and collapsing in closures.
As an urgent measures to save the employment of large number of textile labourers the Government was forced to take over these mills by forming a National Textile Corporation in different zones and states. These mills were kept operative with budgetary supports of Central and State Government but these were actually economic burden on the State Treasury. Ultimately these sick units were closed down and its land properties were sold out.
The Government of Gujarat and Maharashtra have provided special package to save its textile sectors. On the similar pattern the Government of Madhya Pradesh has also decided to give special packages to textile sectors on the state. The units of 500 to 1000 crores rupees will get special exemptions.The Government must ensure textile revival at Indore, Ujjain and Burhanpur. The Minister Mr.Kailash Vijayvargiya had been closely connected with the textile mills of Indore.