Contents:
- Threads of Progress
Threads of Progress
Introduction
- The Make in India initiative (launched in 2014) has significantly boosted textile manufacturing and exports.
- The textile sector is a key contributor to India’s GDP, employment, and foreign exchange earnings.
- Government policies, infrastructure development, and a skilled workforce have strengthened India’s position as a global textile hub.
Relevance : GS 3(Economy , Export)
Overview of India’s Textile Industry
- Contribution to Economy:
- 2.3% of GDP
- 13% of industrial production
- 12% of total exports
- Export Performance (2023-24):
- Total exports: US$ 34.4 billion
- Apparel: 42% | Raw materials/semi-finished materials: 34% | Finished non-apparel goods: 30%
- Employment Generation:
- 45 million+ direct jobs (one of the largest employment sectors after agriculture)
- 80% MSME dominance (decentralized production clusters)
- Significant employment for women and rural youth
- Growth Trends:
- Indian textile market size: US$ 174 billion → US$ 350 billion by 2030
- 7% increase in textile and apparel exports (April–December 2024 YoY growth)
- Ranked 5th globally, with a target growth rate of 15-20% in the next five years
Impact of ‘Make in India’ on the Textile Industry
- Boosted domestic manufacturing & exports through key policy interventions
- Union Budget 2024-25:
- Added two more types of shuttle-less looms under fully exempted textile machinery
- Encouraged investment in advanced textile manufacturing

Major Government Schemes:
- Production Linked Incentive (PLI) Scheme for Textiles
- Budget: ₹10,683 crore
- Focus: Man-made fibre (MMF) & technical textiles
- Provides financial incentives for large-scale textile manufacturers
- PM MITRA Parks (Mega Integrated Textile Region and Apparel)
- Budget: ₹4,445 crore (2021-2028)
- Objective: Develop integrated textile industrial hubs
- 7 PM MITRA Parks established in Gujarat, Maharashtra, MP, Tamil Nadu, Karnataka, UP, Telangana
- Benefits: Reduced logistics costs, increased FDI, enhanced global competitiveness
- Amended Technology Upgradation Fund Scheme (ATUFS)
- Budget: ₹17,822 crore
- Aim: Capital subsidies for technology upgradation
- Samarth (Skill Training for Textile Industry)
- Budget (FY 2023-24): ₹115 crore
- Beneficiaries trained: 3.82 lakh (77.74% placed)
- Textile Cluster Development Scheme (TCDS)
- Budget: ₹853 crore
- Generated 1.22 lakh jobs (as of March 2025)
- National Technical Textiles Mission (NTTM)
- Budget: ₹1,480 crore (2020-2026)
- 168 projects worth ₹509 crore approved
- Focus: Research, innovation, skill development, and export promotion
Budget Allocations for Ministry of Textiles (2025-26)
- Total outlay: ₹5,272 crore (19% increase over 2024-25)
- Key initiatives:
- Cotton Mission: Improve cotton productivity, particularly extra-long staple varieties
- Tax Exemptions on Looms: Shuttle-less looms exempted from customs duty
- Higher Customs Duty on Knitted Fabrics: To curb cheap imports
- MSME Focus: Policies like National Manufacturing Mission, Export Promotion Mission, Bharat Trade Net, Fund of Funds
Export Growth & Market Expansion
- India is the 6th largest textile exporter globally
- Textile & apparel exports share: 8.21% of India’s total exports
- Major Markets:
- USA & EU (47% of total textile exports)
- FTA Agreements with UAE, Australia, and EFTA (Switzerland, Norway, Iceland, Liechtenstein)
- Key Export Incentives:
- Rebate of State and Central Taxes and Levies (RoSCTL)
- PLI Scheme: ₹1,355 crore turnover (₹166 crore exports)
- Quality Control Orders (QCOs): To curb sub-standard imports
- Export Promotion Councils (EPCs): 11 councils promoting textiles
Foreign Direct Investment (FDI) in Textiles
- Total FDI (2000–2024): US$ 4.47 billion (₹28,304 crore)
- FDI Growth Factors:
- Make in India policies
- PM MITRA Parks
- Trade Agreements
Bharat Tex 2024 & 2025 – India’s Global Textile Expo
- Bharat Tex 2024 (Feb 26–29, 2024)
- 3,500 exhibitors | 3,000 buyers | 1 lakh+ trade visitors
- Topics: Sustainability, supply chain resilience, Manufacturing 4.0
- Bharat Tex 2025 (Feb 14–17, 2025)
- 5,000+ exhibitors | 1.2 lakh+ trade visitors | 120+ countries
- Expanded global textile trade footprint
- Vision: “Farm to Fibre, Fabric, Fashion & Foreign Markets”
Cotton Industry in India
- Importance: Contributes ~24% to global cotton production, supports millions of farmers and workers.
- Global Standing: Largest cotton acreage, 36th in productivity, 2nd largest producer and consumer.
- Cotton Species: India grows all four species – G. Arboreum, G. Herbaceum, G. Barbadense, and G. Hirsutum.
- Major Growing Zones: Northern, Central, and Southern India.
Government Initiatives
- MSP Operations: Ensuring remunerative prices for farmers.
- Cott-Ally Mobile App: Assistance for cotton farmers.
- Aadhar-based Farmer Registration: For MSP benefits.
- E-Auction: Transparent cotton stock sales.
- Blockchain-Based QR Codes: Traceability.
- Kasturi Cotton Bharat Programme: Branding of Indian cotton.
Silk Industry in India
- Significance: Called the “Queen of Textiles,” India is the 2nd largest producer and largest consumer globally.
- Silk Varieties: India produces all four commercial silk types – Mulberry, Tasar, Muga, and Eri.
Government Support
- Central Silk Board (CSB): Under the Ministry of Textiles, established in 1948.
- Scheduled Caste Sub Plan (SCSP) & Tribal Sub Plan (TSP): Implemented under the Silk Samagra Scheme.
- ₹25 crore allocated (2023-24): For SCSP implementation.
- R&D Focus: Soil testing, organic farming, silkworm by-products, reeling tech upgrades, and automatic reeling machines.
- Make in India Initiative: Promotes domestic silk production.
- Design & Diversification: Encourages new product development.
Jute Industry in India
- Economic Importance: Key to Eastern India, especially West Bengal, providing significant employment.
- Employment: 4 lakh workers in organized mills; supports 40 lakh farm families.
- Jute Mills: 116 composite mills; 86 in West Bengal.
- Government Support: MSP operations by Jute Corporation of India; direct jute sacking purchases.
- Production & Export:
- Average Land under Jute Cultivation: 799 thousand hectares.
- Average Raw Jute & Mesta Production: 10,990 thousand bales.
- Average Jute Goods Export: 133 thousand MT (~₹21,150 million annually).
Government Initiatives
- Jute-ICARE Scheme: Enhances fibre quality, productivity, and farmer income.
- National Jute Board: Implements sectoral schemes.
- Promotion of Jute Products: To boost domestic and export demand.
Innovation in Textiles
- Startup India & DPIIT collaboration:
- Conducted Innovation Challenges
- 9 winners awarded & incubated
- Technical Textile Innovations:
- Focus on smart fabrics, eco-friendly textiles, and technical textiles
- Investment in R&D:
- Government funding innovation in sustainable textile production
Challenges & Way Forward
Key Challenges:
- High raw material costs (cotton & MMF)
- Competition from low-cost producers (Bangladesh, Vietnam, China)
- Infrastructure gaps (port efficiency, logistics)
- Low share in global MMF textile trade