Prabandh Logo
UPSC
PIB

Strengthening India’s Textile Sector: Policies and Progress

Last Updated

2nd April, 2025

Date Published

2nd April, 2025

Share This Post With Someone

A realistic scene showcasing Indian textiles, blending traditional village weaving with modern textile production.

Context:

This document from the Press Information Bureau, Government of India, details key schemes, budget allocations, and initiatives as of April 2, 2025, aimed at enhancing India’s textile industry, boosting exports, and supporting livelihoods under the Make in India framework.

Key Information in Points:

Major Schemes and Initiatives:

  • Production Linked Incentive (PLI) Scheme for Textiles:
    • Objective: Boost manufacturing of man-made fibre (MMF) and technical textiles.
    • Budget: ₹10,683 crore.
    • Incentives: Financial support for large-scale textile manufacturers.
    • Progress: Turnover of ₹1,355 crore, including ₹166 crore in exports, as of March 31, 2024.
  • PM MITRA Parks:
    • Objective: Develop world-class industrial infrastructure for the textile value chain (spinning, weaving, garmenting, etc.).
    • Budget: ₹4,445 crore (2021-22 to 2027-28).
    • Benefits: Lower logistics costs, increased FDI, and global competitiveness.
    • Status: 7 parks established in Gujarat, Maharashtra, Madhya Pradesh, Tamil Nadu, Karnataka, Uttar Pradesh, and Telangana as of March 2025.
  • Amended Technology Upgradation Fund Scheme (ATUFS):
    • Objective: Promote credit-linked technology upgrades in the MSME-driven textile sector.
    • Budget: ₹17,822 crore.
    • Incentives: Capital subsidies for modernizing equipment.
  • Samarth Scheme:
    • Objective: Skill training for textile workers in collaboration with the Ministry of Skill Development.
    • Budget: ₹115 crore sanctioned in FY 2023-24, with ₹114.99 crore disbursed.
    • Status: As of March 27, 2025, 4.78 lakh users registered, 3.82 lakh trained, and 2.97 lakh (77.74%) placed.
  • Textile Cluster Development Scheme (TCDS):
    • Objective: Create integrated workspaces and ecosystems for textile clusters.
    • Budget: ₹853 crore.
    • Benefits: Economies of scale, competitiveness, and better technology access.
    • Status: Generated 1.22 lakh jobs by March 18, 2025; ₹34.48 crore released in 2024-25.
  • National Technical Textiles Mission (NTTM):
    • Objective: Promote technical textiles through research, market development, and skilling.
    • Duration: 2020-21 to 2025-26.
    • Budget: ₹1,480 crore.
    • Status: 168 projects worth ₹509 crore approved by January 1, 2025.

Union Budget 2025-26:

  • Allocation: ₹5,272 crore for the Ministry of Textiles, a 19% increase from ₹4,417.03 crore in 2024-25.
  • Highlights:
    • Cotton Mission: 5-year plan to enhance cotton productivity, focusing on extra-long staple varieties.
    • Tax Exemptions: Duty removed on shuttle-less looms.
    • Customs Duty: Increased on knitted fabrics to 20% or ₹115/kg (whichever is higher) to curb cheap imports.
    • Handicraft Exports: Export timeline extended to one year; more items eligible for duty-free imports.
    • MSME Support: Focus on exports, credit, and policies like National Manufacturing Mission and Bharat Trade Net.

Export Growth and Market Expansion:

  • India’s Rank: 6th largest exporter of textiles and apparel globally.
  • Export Share: 8.21% of India’s total exports in 2023-24; 3.91% of global textile trade.
  • Export Data (USD Million):
    • 2022-23: Textiles & Apparel: 34,997; Handicrafts: 1,689; Total: 36,686.
    • 2023-24: Textiles & Apparel: 34,072; Handicrafts: 1,802; Total: 35,874.
  • Key Markets: USA and EU (47% of exports).
  • Initiatives:
    • RoSCTL: Rebates state and central taxes on apparel exports since March 7, 2019.
    • FTAs: 14 signed (e.g., UAE, Australia, EFTA); ongoing talks with UK, EU, Oman.
    • Quality Control Orders: Standards set to regulate quality and reduce sub-standard imports.
    • Textile Advisory Group on MMF: Formed to address MMF sector concerns.
    • Export Promotion Councils: 11 councils promote various textile segments.

FDI in Textiles:

  • Total FDI: US$4,472.79 million (₹28,304.10 crore) from January 2000 to March 2024.

Bharat Tex Events:

  • Bharat Tex 2024: Held February 26-29, 2024, in Delhi; 3,500 exhibitors, 3,000 buyers from 111 countries, 1 lakh+ visitors; 70 sessions, 112 international speakers.
  • Bharat Tex 2025: Held February 14-17, 2025, in New Delhi; 5,000+ exhibitors, 1,20,000+ visitors from 120+ countries; aimed to triple exports to ₹9 lakh crore by 2030.

Innovation in Textiles:

  • Innovation Challenges: Conducted with Startup India & DPIIT; 9 winners recognized, 6 offered incubation.
  • Specific Challenges:
    • NJB: 3 winners from 125 applicants.
    • CSB: 4 winners from 58 applicants.
    • CWDB: 3 winners from 24 applicants.
  • Focus: Textile waste recycling, bio-based fibres, sustainable garments.

Cotton Industry:

  • Contribution: 24% of global cotton production; largest cotton acreage worldwide.
  • Rank: 2nd largest producer and consumer; 36th in productivity.
  • Species: G. Arboreum, G. Herbaceum, G. Barbadense, G. Hirsutum.
  • Data (Lakh Bales):
    • Production: 2021-22: 311.17; 2022-23: 336.60; 2023-24: 325.22.
    • Consumption: 2021-22: 322.41; 2022-23: 313.63; 2023-24: 323.00.
    • Imports: 2021-22: 21.13; 2022-23: 14.60; 2023-24: 6.73.
    • Exports: 2021-22: 42.25; 2022-23: 15.89; 2023-24: 26.24.
  • Initiatives: MSP operations, Cott-Ally app, Aadhar-based registration, e-auctions, QR code traceability, Kasturi Cotton Bharat branding.

Silk Industry:

  • Rank: 2nd largest producer and largest consumer globally.
  • Varieties: Mulberry, Tasar, Eri, Muga.
  • Production (MT):
    • 2004-05: 16,500; 2023-24: 38,913; 2024-25 (Apr-Sep): 18,355.
  • Support: Central Silk Board (est. 1948), Silk Samagra Scheme (SCSP: ₹25 crore in 2023-24), R&D for productivity, reeling tech upgrades.

Jute Industry:

  • Employment: 4 lakh workers, 40 lakh farm families.
  • Mills: 116 total; 86 in West Bengal.
  • Cultivation: 799,000 hectares; production: 10,990,000 bales (4-year avg).
  • Exports: 133,000 MT, ₹21,150 million (4-year avg).
  • Initiatives: MSP by Jute Corporation, Jute-ICARE, National Jute Board schemes.

Conclusion:

  • The Make in India initiative drives textile growth through policies, infrastructure, and innovation, aiming for global leadership and economic benefits.

Key Terms:

  • PLI Scheme: Financial incentives to boost manufacturing in targeted sectors.
  • PM MITRA Parks: Integrated textile industrial zones for value chain development.
  • ATUFS: Subsidy scheme for technology upgrades in textiles.
  • Samarth: Skill training program for textile workers.
  • TCDS: Scheme to enhance textile cluster ecosystems.
  • NTTM: Mission to promote technical textiles innovation.
  • RoSCTL: Tax rebate scheme for apparel exports.
  • FDI: Foreign investment in Indian industries.
  • Bharat Tex: Global textile expo showcasing India’s textile ecosystem.
  • MSP: Minimum price guarantee for farmers’ produce.
  • Kasturi Cotton: Branding initiative for Indian cotton.
  • Silk Samagra: Scheme supporting silk industry development.
  • Jute-ICARE: Program to improve jute quality and farmer income.