The Government of India has taken significant steps to enhance the textile industry’s capabilities, aiming to establish India as a global leader in textile manufacturing and exports. A range of schemes and initiatives have been launched to modernize the sector, attract investments, create job opportunities, and improve competitiveness. These initiatives span across various stages of the textile value chain, from research and development to export promotion.
1. PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks
A major initiative is the establishment of PM MITRA Parks, designed to create large-scale, modern industrial ecosystems. These parks are set up in both Greenfield and Brownfield sites, offering world-class infrastructure, including plug-and-play facilities. The scheme has an outlay of Rs. 4,445 crore for the period 2021-2028 and aims to boost investment and employment generation across the textile value chain. The Government has identified seven key locations for the parks, including Tamil Nadu (Virudhnagar), Telangana (Warangal), Gujarat (Navsari), Karnataka (Kalaburagi), Madhya Pradesh (Dhar), Uttar Pradesh (Lucknow), and Maharashtra (Amravati). These parks will be equipped to handle processes like spinning, weaving, garment manufacturing, and more, thereby creating a complete integrated textile value chain.
Once operational, each park is expected to generate around 3 lakh direct and indirect jobs. Furthermore, the parks are poised to attract investments worth approximately Rs. 10,000 crore, providing a massive boost to India’s textile industry.
2. Production Linked Incentive (PLI) Scheme
The Government has also introduced the Production Linked Incentive (PLI) Scheme, focusing on Man-Made Fibres (MMF), Apparel, and Technical Textiles. This scheme is designed to encourage large-scale manufacturing and improve the sector’s global competitiveness by offering financial incentives to firms that meet specific production targets. The allocation for the PLI scheme has been significantly increased, with Rs. 45 crore set aside for FY 2024-25 and Rs. 1,148 crore for FY 2025-26. The government’s focus on these high-demand segments aligns with global trends, further positioning India as a competitive textile manufacturing hub.
3. National Technical Textiles Mission (NTTM)
To foster innovation in the technical textiles sector, the National Technical Textiles Mission (NTTM) was launched with a focus on Research, Innovation & Development, Skilling, Market Development, and Export Promotion. The mission aims to develop new technologies and products, particularly in emerging sectors like medical textiles, geotextiles, and industrial textiles. As part of this mission, the government is training 50,000 individuals in technical textiles, ranging from unskilled workers to professionals seeking upskilling opportunities.
4. Samarth Scheme for Skilling
The Samarth Scheme, introduced under the National Skills Qualifications Framework (NSQF), aims to provide industry-relevant, placement-oriented skilling programs across the textile value chain, excluding spinning and weaving. The program benefits a wide range of stakeholders, from workers to professionals, ensuring the workforce is adequately skilled to meet industry demands. The government has allocated Rs. 330 crore for the scheme in FY 2025-26.
5. Amended Technology Upgradation Fund Scheme (ATUFS)
Modernizing textile machinery and encouraging technological upgradation is a priority for the government. The Amended Technology Upgradation Fund Scheme (ATUFS), launched in January 2016, offers financial incentives to textile businesses investing in modern machinery and technology. Although the scheme expired in March 2022, committed liabilities are still being cleared, with Rs. 635 crore allocated for machinery modernization in the coming fiscal year.
6. Handloom and Handicrafts Development Programs
The handloom and handicraft sectors have also received substantial support through dedicated schemes. The National Handloom Development Program (NHDP) and National Handicraft Development Program (NHDP) aim to provide end-to-end support for handloom workers and artisans. This includes assistance for raw materials, loom upgrades, infrastructure, product diversification, design innovation, and social security benefits. In addition, the government provides financial support to handloom weavers' children for education, ensuring the next generation of workers is equipped with the necessary skills.
7. Export Support and Rebate Schemes
The Government of India is focused on enhancing the textile sector's global competitiveness through initiatives like the Rebate of State and Central Taxes and Levies (RoSCTL) and Remissions of Duties and Taxes on Exported Products (RODTEP). These schemes aim to eliminate export taxes and create a level playing field for Indian textile products in the international market. Additionally, financial support is provided to export promotion councils to help organize and participate in national and international trade fairs, exhibitions, and buyer-seller meets.
8. Financial Support and Welfare for Workers
The Textile Workers Rehabilitation Fund Scheme (TWRFS), merged into the Rajiv Gandhi Shramik Kalyan Yojana (RGSKY) in 2017, provides relief to workers affected by the closure of textile mills. Additionally, various welfare programs, such as financial assistance to handloom weavers' children for education, ensure the long-term sustainability of the workforce.
9. Budgetary Allocations for 2024-2026
The budgetary allocations for the textile sector reflect the government's growing focus on supporting and expanding the sector. For the fiscal year 2024-25, Rs. 4,417 crore has been earmarked, with substantial increases in the PLI scheme and support for jute textiles. The following fiscal year, FY 2025-26, will see further increases, with a proposed allocation of Rs. 5,272 crore.
Conclusion
The Government of India's multi-faceted approach to boosting the textile industry includes modernizing infrastructure, providing financial support, promoting skill development, and enhancing export competitiveness. Through initiatives like PM MITRA Parks, PLI Schemes, and Technical Textiles Missions, the government is laying a strong foundation for the sector's growth, which will result in significant job creation, increased investments, and enhanced global competitiveness. These efforts are critical for India’s ambitions of becoming the world’s textile hub.
