Government Schemes and Policies for the Textile and Apparel Sector in India

India’s textile and apparel sector is one of the oldest industries in the country, contributing around 2% to the national Gross Domestic Product (GDP), 12% to export earnings, and acting as the second-largest employer after agriculture. To transition the industry from a fragmented ecosystem into a globally competitive manufacturing hub, the Union Ministry of Textiles implements targeted schemes addressing raw material security, modern infrastructure, skill development, technical textiles, and export remissions. These initiatives follow the 5F vision—Farm to Fibre to Factory to Fashion to Foreign—improving value addition across natural and man-made fibre chains.

Institutional Framework and Governance Structure

Ministry of Textiles and Attached Offices

• The Union Ministry of Textiles formulates policy, plans industrial development, and oversees export promotion across the textile, apparel, handloom, handicraft, and technical textile sectors.
• The Office of the Textile Commissioner, headquartered in Mumbai, advises the ministry on production estimates, monitors industrial output, and implements technology upgradation programs.
• The Office of the Development Commissioner for Handlooms and the Office of the Development Commissioner for Handicrafts execute welfare schemes, cluster development programs, and marketing support for traditional artisans.

Statutory and Autonomous Bodies

• The Central Silk Board, established under the Central Silk Board Act, 1948, functions as a statutory body responsible for silk research, seed production, quality control, and sericulture growth.
• The National Jute Board, created under the National Jute Board Act, 2008, promotes jute cultivation, product diversification, and market development.
• The Textiles Committee, established under the Textiles Committee Act, 1963, ensures quality control and standardizes testing across textile machinery and export goods.

Flagship Schemes for Industrial Scale and Infrastructure

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

• Approved with an outlay of ₹4,445 crore, the PM MITRA scheme funds seven mega textile parks across Tamil Nadu, Telangana, Karnataka, Maharashtra, Gujarat, Madhya Pradesh, and Uttar Pradesh.
• Each park provides an integrated value chain under one location—spinning, weaving, processing, printing, and garmenting—reducing logistics overheads.
• The scheme provides Development Capital Support up to ₹500 crore per park alongside Competitive Incentive Support up to ₹300 crore per park to encourage early manufacturing units.

Production Linked Incentive (PLI) Scheme for Textiles

• The PLI Scheme for Textiles carries a financial outlay of ₹10,683 crore to boost domestic production of Man-Made Fibre (MMF) fabrics, MMF garments, and technical textiles.
• Incentives range from 3% to 15% on incremental turnover over a five-year period for participating units meeting specified investment and turnover thresholds.
• The scheme aims to attract over ₹19,000 crore in fresh investment and create direct employment for over 7.5 lakh individuals.

Technology Upgradation and Tex-RAMPS

• The Amended Technology Upgradation Fund Scheme (ATUFS) provided capital investment subsidies to modernize garmenting, technical textiles, and processing machinery.
• The Tex-RAMPS scheme (Textile Focused Research, Assessment, Monitoring, Planning, and Start-up) operates as a central sector scheme providing 100% central funding for targeted research, statistical data systems, regional planning, and startup incubations.

Sector-Specific Interventions and Raw Material Missions

National Technical Textiles Mission (NTTM)

• Launched with an outlay of ₹1,480 crore, the NTTM positions India as a global leader in high-tech application textiles across twelve sub-sectors, including Agrotech, Geotech, Meditech, and Mobiltech.
• The mission operates on four pillars: Research, Innovation and Development; Promotion and Market Development; Education, Skilling and Canvas; and Export Promotion.
• It finances indigenous machine development and funds R&D projects in defense, infrastructure, and healthcare applications.

Cotton Productivity Mission (Kapas Kanti) and Kasturi Cotton

• The Cotton Productivity Mission (Kapas Kanti) drives high-density planting, pest management, and seed quality upgrades to raise yield per hectare.
• Kasturi Cotton India is a national branding initiative launched to certify Indian long-staple cotton for traceably high purity, low trash content, and sustainability standard compliance.
• Blockchain-enabled QR codes allow international buyers to trace Kasturi Cotton from ginning mills to finished garments.

Silk Samagra-2 and Jute Sector Schemes

• Silk Samagra-2 strengthens the sericulture value chain by upgrading mulberry, vanya, and tussar silk production, modernizing automatic reeling units, and providing disease-resistant silkworm seeds.
• The Jute Packaging Materials (Compulsory Use in Packing Commodities) Act, 1987, mandates 100% reservation of foodgrains and 20% reservation of sugar to be packed in diversified jute bags.
• JUTE-SMART is an e-governance portal streamlining procurement of jute bales by state procurement agencies and the Food Corporation of India.

Skill Development, Export Promotion, and Artisanal Support

SAMARTH Scheme

• The Scheme for Capacity Building in Textile Sector (SAMARTH) provides demand-driven, placement-linked skilling programs across the textile value chain, excluding spinning and weaving in the organized sector.
• Training programs align with National Skills Qualification Framework (NSQF) standards, prioritizing women, SC/ST categories, and traditional craft clusters.

Export Remission Schemes (RoSCTL and RoDTEP)

• The Rebate of State and Central Taxes and Levies (RoSCTL) reimburses embedded non-GST state and central taxes on exports of apparel, garments, and made-ups.
• Rebates are issued as duty credit e-scrips through the customs system, which are freely transferable and usable to clear Basic Customs Duty on imports.
• Non-apparel textile items receive export tax neutralizations under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme.

Overview of Key Textile Schemes and Policy Mandates

Key Facts for Quick Revision

• India is the world’s second-largest producer of cotton and second-largest producer of silk.
• The 5F vision represents Farm to Fibre to Factory to Fashion to Foreign.
• Seven PM MITRA Parks are being developed in Tamil Nadu, Telangana, Karnataka, Maharashtra, Gujarat, Madhya Pradesh, and Uttar Pradesh.
• The PLI scheme for textiles carries an outlay of ₹10,683 crore, focusing exclusively on MMF garments, MMF fabrics, and technical textiles.
• The National Technical Textiles Mission operates with four strategic components and a ₹1,480 crore outlay.
• Kasturi Cotton India provides identity branding, traceably certified quality, and QR-code tracking for Indian cotton.
• Silk Samagra-2 is executed through the Central Silk Board to upgrade mulberry and non-mulberry silk sectors.
• The Jute Packaging Materials Act of 1987 mandates 100% foodgrain packaging in jute sacks.
• RoSCTL reimburses un-refunded central and state levies via electronic duty credit scrips.
• The SAMARTH scheme provides skill development aligned with the National Skills Qualification Framework.
• The Central Silk Board was established in 1948, while the National Jute Board was formed under an Act of 2008.