Context

• The Ministry of Textiles has launched the District-Led Textile Transformation Initiative, with the primary objective of developing each district of India as an independent textile export hub.

Key Highlights

• Launch Event: National Conference of Textile Ministers, Guwahati
• Significance: A strategic step towards transforming India’s textile sector from “Local to Global.”
• Core Objective: To develop districts not merely as administrative units, but as economic clusters.

Strategic Classification of Districts

Based on their potential, districts have been divided into two distinct categories:

Key Pillars of the Initiative

• Inclusive Development: Priority to North-Eastern states and tribal regions to address regional imbalances.
• Cultural Preservation: Global recognition of local handicrafts through Geographical Indication (GI) tagging.
• Formalization: Integrating rural and unorganized workforce into the formal economy.

Economic and Social Significance

• GDP Contribution: The textile sector currently contributes 2.3% to India’s GDP, which this initiative aims to further enhance.
• Employment Generation: The second-largest employer after agriculture. The initiative is a game-changer for women empowerment, as 60–70% of the workforce in textiles comprises women, and for rural livelihoods.
• Global Ranking: India is currently the 6th largest textile exporter; the initiative aims to position India among the top three globally.

Synergy with Existing Schemes

• PM MITRA: Development of mega textile parks to reduce logistics costs.
• ATUFS: Support for technology upgradation.
• One District One Product (ODOP): In the context of Uttar Pradesh, DLTT will directly strengthen ODOP products such as Bhadohi carpets and Lucknow Chikankari, transforming them into global export hubs.

Textile Sector in India

• Second-largest employment-generating sector after agriculture.
• A backbone of the Indian economy, contributing significantly to GDP while showcasing India’s cultural heritage globally.
• Exports (FY 2024–25): USD 37,755 million (including handicrafts), registering 5.2% growth over the previous year.
• India is the 6th largest exporter of textiles globally.
• Share in Total Exports (2023–24): 8.21%; global trade share of 4.5%, with the USA and EU accounting for 47% of India’s textile and apparel exports.
• Employment: Over 45 million people employed directly and more than 100 million indirectly, with a large share of women and rural workers.
• GDP Contribution: Approximately 2–2.3%.
• Industrial Production (IIP): Around 13% of total industrial output.
• Market Size Target: USD 350 billion by 2030.

India’s Global Positioning

• Cotton: Largest producer globally (about 23% of world production).
• Jute: World’s largest producer.
• Silk: Second-largest producer after China.
• Man-Made Fibre (MMF): Second globally in polyester and viscose production.

Major Government Policy Support

• PM MITRA: Development of 7 mega textile parks (including Lucknow–Hardoi in Uttar Pradesh).
• PLI Scheme: Financial incentives for MMF and technical textiles (extended till 31 March 2026).
• SAMARTH: Skill development programme for the textile sector, targeting training of millions.
• Cotton Mission (5-Year): Announced in 2025 to enhance productivity of Extra-Long Staple (ELS) cotton.