Reference:

• The Make in India initiative has played a significant role in establishing India as a global textile manufacturing and export hub.

Introduction:

• Launched in 2014, the Make in India initiative has played a vital role in revitalizing India's textile and apparel industry and establishing it as a global manufacturing center.
• This industry is one of the largest contributors to India’s economy, accounting for 2.3% of GDP, 13% of industrial production, and 12% of exports.
• Policy interventions, infrastructure development, and skill development programs under Make in India have helped India emerge as a preferred investment destination in the global textile sector.

Current Scenario of the Textile Industry:

India’s textile and apparel industry operates across a diverse and complex value chain, with the following key features:

• Economic Contribution: Textile goods worth USD 34.4 billion exported in 2023-24
• Employment Generation: Provides direct employment to over 45 million people, including women and rural populations
• MSME Dominance: Nearly 80% of the industry’s capacity lies within micro, small, and medium enterprises
• Production Capacity: Approximately 22,000 million garments produced annually

Major Government Schemes to Boost Textile Manufacturing, Investment & Exports:

Production Linked Incentive (PLI) Scheme for Textiles:

• Objective: Boost manufacturing in Man-Made Fibres (MMF) and Technical Textiles
• Budget: ₹10,683 crore
• Incentive: Financial incentives for large-scale textile manufacturers

PM MITRA (Mega Integrated Textile Region and Apparel) Parks:

• Objective: Develop world-class industrial infrastructure for textile manufacturing
• Focus: Integrated large-scale and modern industrial infrastructure covering the entire textile value chain like spinning, weaving, processing, garment manufacturing, textile machinery, etc.
• Budget: ₹4,445 crore for 2021-22 to 2027-28
• Key Benefits: Reduced logistics costs, increased FDI, enhanced global competitiveness
• Current Status: 7 parks set up in Gujarat, Maharashtra, Madhya Pradesh, Tamil Nadu, Karnataka, Uttar Pradesh, and Telangana

Amended Technology Upgradation Fund Scheme (ATUFS):

• Objective: Encourage credit flow for benchmarked credit-linked tech upgrades in MSME-run textile industries
• Budget: ₹17,822 crore
• Incentive: Capital subsidy for technology upgradation

SAMARTH (Scheme for Capacity Building in Textile Sector):

• Objective: Skill training for workers in textile sector in partnership with the Ministry of Skill Development & Entrepreneurship
• Budget Allocation: ₹115 crore sanctioned for FY 2023-24; ₹114.99 crore (99.9%) disbursed
• Current Status: Over 4.78 lakh users registered on SAMARTH portal as of 27 March 2025. 3.82 lakh beneficiaries trained (passed), and 2.97 lakh (77.74%) placed as of 19 March 2025.

Textile Cluster Development Scheme (TCDS):

• Objective: Create integrated workplace and connectivity-based ecosystem for existing and potential textile units/clusters to make them operationally and financially viable
• Benefits: Optimized interventions, economies of scale, competitiveness in manufacturing, cost efficiency, better access to technology and information
• Budget: ₹853 crore
• Current Status: As of 18 March 2025, around 1.22 lakh employment opportunities created. ₹34.48 crore disbursed in 2024-25

National Technical Textiles Mission (NTTM):

• Objective: Promote technical textiles in the country
• Target Year: 2020-21 to 2025-26
• Budget: ₹1,480 crore
• Focus: R&D, innovation, promotion, education, skill development, export promotion to make India a global leader in technical textiles
• Current Status: As of 1 January 2025, 168 projects worth ₹509 crore (approx.) approved in special fibers and technical textiles categories

Union Budget 2025-26 for Ministry of Textiles:

• Allocation: ₹5,272 crore (19% increase over 2024-25)

Highlights:

• Cotton Mission: Five-year plan to boost productivity
• Loom Tax Relief: Duty removed on shuttle-less looms
• Customs Duty Increase: 20% or ₹115/kg (whichever is higher) on woven fabrics
• Handicraft Exports: Duty-free import and extended export timelines
• MSME Support: Focus on exports, credit, manufacturing, and trade missions

Government Initiatives to Boost Textile & Apparel Exports:

• RoSCTL Scheme: Rebate of State and Central taxes and levies on exports
• PLI Scheme: Business of ₹1,355 crore and exports of ₹166 crore
• Free Trade Agreements (FTAs): 14 FTAs, 6 PTAs; new FTAs under negotiation
• Quality Control Orders: Notification of standards to stop substandard imports
• MMF Advisory Group: Focus on reforming man-made fiber sector
• Export Promotion Councils: 11 EPCs working to enhance exports in global markets

Innovation in the Textile Sector:

• Innovation Challenge: Conducted with Startup India & DPIIT; 9 winners honored
• Atal Innovation Mission: Incubation offered to 6 winners
• Nature Fiber Board: 3 separate innovation challenges held
• NJB Technological Innovation: 3 winners out of 125
• CSB Startup Grand Challenge: 4 winners out of 58
• CWDB Wool Innovation: 3 winners out of 24
• Sustainable Innovation: 17 winners active in textile waste recycling and bio-based fibers

Cotton Industry in India:

• Global Contribution: 24% of global cotton production; largest cotton cultivation area in the world
• Production & Consumption: 2nd largest cotton producer and consumer globally
• Varieties: G. arboreum, G. herbaceum, G. barbadense, G. hirsutum
• Major Zones: Northern, Central, and Southern India
• Importance: Supports livelihood of millions of farmers and contributes to foreign exchange earnings.