DPIIT implementing funding schemes
The Textile Ministry has formulated a comprehensive 40 country market diversification strategy, identified high-potential global destinations and undertaken structured outreach through Export Promotion Councils (EPCs), industry delegations, and Indian Missions abroad to enhance the country’s global footprint https://fieo.org/.
This update was given by the Minister of State for Textiles Prabitra Margherita in a written reply to a question in Rajya Sabha on 12 Dec http://ministryoftextiles.gov.in.
In addition, various schemes and programmes have been approved to encourage and promote the textile industry such as PM Mega Integrated Textile Regions and Apparel (PM MITRA) Parks Scheme for world-class industrial infrastructure; Production Linked Incentive (PLI) Scheme for MMF Apparel, MMF Fabrics and Technical Textiles to boost large scale manufacturing and enhancing competitiveness; National Technical Textiles Mission for research, innovation, market development and skilling; SAMARTH – Scheme for Capacity Building in Textile Sector; Silk Samagra-2 for sericulture development; Amended Technology Upgradation Fund Scheme (ATUFS) for modernization; National Handloom Development Programme, National Handicrafts Development Programme, Comprehensive Handicrafts Cluster Development Scheme for end-to-end support to artisans, weavers and handicraft clusters https://www.textileassociationindia.org/.
The Government provides various incentives and benefits to enhance the competitiveness of textiles industry in the international and domestic market, some of these are:
(i) The Ministry with support of EPCs has organized Bharat Tex in 2024 & 2025— India’s largest global textile event to strengthen international engagement, bringing together exhibitors and trade visitors from various countries, and showcasing the scale, innovation, and global competitiveness of India’s textile ecosystem.
(ii) The Government is implementing the Rebate of State and Central Taxes and Levies (RoSCTL) scheme for apparel garments and made-ups, based on WTO-compliant principles of zero-rated exports. The textile products which are not covered under the RoSCTL scheme are supporting under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme along with other non-textile sectors. Under RoSCTL, more than 15,000 exporters have been benefitted from rebates on embedded taxes during FY 2024-25 https://sbi.com.in/.
(iii) India has signed 15 Free Trade Agreements (FTAs), including the India-UK Comprehensive Economic and Trade Agreement (CETA). These FTAs aim to reduce tariff and non-tariff barriers, simplify procedures, and address structural issues to make Indian Exporters more competitive in partner markets.
(iv) The Government has approved the Export Promotion Mission (EPM) which is anchored in a collaborative framework involving the Department of Commerce, Ministry of MSME, Ministry of Finance, and other key stakeholders including Financial Institutions, Export Promotion Councils, Commodity Boards, industry associations, and state governments.
(v) The Government has exempted import duty on cotton upto 31 Dec 2025 for reducing the input material costs for the textile industry, ensuring adequate supply and improving export competitiveness and enhancing overall industry efficiency https://www.nseindia.com/.
(vi) The Government has rationalized the GST rate across the textile value chain to remove structural anomalies, reduce costs, boost demand, support exports and sustain jobs.
Further, the Ministry is regularly monitoring India’s export of Textile & Apparel including Handicrafts to the world. India’s export of textiles & apparel (including handicrafts) was US$37,755.0 million in FY 2024–25 exhibiting a growth of 5.2% compared to the previous year (FY 2023-24).
Additionally, India’s Textiles & Apparel exports, including handicrafts, stood at US$20,401.95 million during April-October 2025, reflecting a marginal decline of 1.8% compared to the same period in the previous year (US$20,728.05 million), yet indicating overall stability in export performance despite global tariff-related and other external challenges. (Source- Quick Estimates, Department of Commerce) https://www.bseindia.com/.
The Minister elaborated on the progress made by the textile industry.
During April-October 2025, India’s exports recorded positive growth in more than 100 countries compared to the previous year-including key markets such as the UAE, UK, Germany, Spain, France, Italy, China, Saudi Arabia, Egypt and Japan-reflecting the resilience and diversification efforts of the Indian textile industry.
The combination of different factors such as product differentiation, demand, quality, contractual arrangements etc. would determine the impact of reciprocal tariffs on India’s exports of textiles sector in global market.
The Government continues to work to mitigate the impact of the US tariff measures on Indian exports through a comprehensive multi-pronged strategy encompassing intensive engagement with the US Government for a mutually beneficial India-US Bilateral Trade Agreement, immediate relief through Trade relief measures of RBI, Credit Guarantee Scheme for Exporters, enhancement of domestic demand through next generation GST reforms, Export Promotion measures such as the new Export Promotion Mission which provide support and assistance to our exporters, pursuing free trade agreements (FTAs) with new countries and better utilization of existing FTA.
Further, the Ministry is in regular consultation with exporters, export promotion councils (EPCs) and all other stake holders including MSMEs to assess the impact of US tariff on India’s textiles & apparel export and other challenges.
The Government is implementing flagship schemes of PM Mega Integrated Textile Regions and Apparel (PM MITRA) Parks to create a modern, integrated, world class textile infrastructure. The Government is establishing 7 PM Mega Integrated Textile Regions and Apparel (PM-MITRA) Parks in the states of Tamil Nadu (Virudhunagar), Telangana (Warangal). Gujarat (Navsari), Karnataka (Kalaburagi), Madhya Pradesh (Dhar), Uttar Pradesh (Lucknow & Hardoi), and Maharashtra (Amravati) in collaboration with the respective state governments. These parks aim to reduce logistics costs, enhance competitiveness, and contribute to achieving textile export goal by 2030.
The Government is also implementing Production Linked Incentive (PLI) Scheme focusing on MMF Fabric, MMF Apparel and Technical Textiles to boost large scale manufacturing and enhancing competitiveness with an approved outlay of Rs.10,683 crore.
The PLI Scheme for Textiles has been made more attractive for investors through recent amendments in October 2025, wherein minimum investment limit has been reduced by 50%, incremental turnover criteria lowered from 25% to 10% from the second year, product basket has been expanded by inclusion of 17 new products of MMF apparel, & fabrics, as well as condition of setting up a new company for availing the benefit of the Scheme has been removed. These amendments are designed to stimulate investments across the entire MMF value chain and enhance production of MMF Apparels, Fabrics and Technical Textile products.
The Government is running SAMARTH – Scheme for Capacity Building in Textile Sector with the objective to provide demand driven, placement-oriented skilling programmes to supplement the efforts of the industry in creating jobs in the organized textile and related sectors, covering the entire value chain of textiles, excluding Spinning and Weaving in organized sector, on pan India basis. Under the Scheme, 5.40 lakh beneficiaries have been trained (passed) from inception till 9 Dec 2025.
With a view to promote Technical Textile sector in the country, Government of India had launched National Technical Textiles Mission (NTTM) for the period 2020-21 to 2025-26 with outlay of Rs.1,480 crore. The fund allotted is for research and development both fundamental and applied research in technical textile sector; and increasing penetration level of technical textiles through promotion and market development activities; create skilled and educated manpower in the field of technical textiles.
With a view to promote technical textiles in the country, National Technical Textile Mission (NTTM) was launched in the year 2020 with a fund outlay of Rs.1,480 crore. Under NTTM, the Grant for Research and Entrepreneurship across Aspiring Innovators in Technical Textiles (GREAT) Scheme has been launched to promote entrepreneurship in Technical Textiles Sector. The scheme provides financial assistance of up to Rs.50 lakh for each approved start-up.
Twenty-four Start-ups have been approved under GREAT scheme of NTTM so far. Under the component of “Promotion & Market Development” of National Technical Textiles Mission (NTTM), 35 National/ International conference/ event /workshops have been organized by the Ministry so far, which aim to create awareness, demand for promotion and market development of Technical Textiles.
In addition, under the Startup India initiative, Government in the Department for Promotion of Industry and Internal Trade (DPIIT) is also implementing three flagship Schemes, Fund of Funds for Startups (FFS), Startup India Seed Fund Scheme (SISFS), and Credit Guarantee Scheme for Startups (CGSS) to provide funding to various sector including textiles & fabrics.
Further, the Government is also providing support for marketing of handloom and handicraft products in domestic/overseas markets through participation in events under National Handloom Development Programme (NHDP) and National Handicarft Development Programme (NHDP).
Under the National Handloom Development Programme and Raw Material Supply Scheme, financial assistance is provided to eligible handloom agencies/workers for raw materials, procurement of upgraded looms & accessories, solar lighting units, construction of workshed, product diversification & design innovation, technical and common infrastructure, marketing of handloom products in domestic/overseas markets, concessional loans under weavers’ MUDRA scheme and social security etc. In addition, to promote entrepreneurship, self-employment, and facilitate better incomes, 163 Handloom Producer companies have been formed across the country.
According to Fourth All India Handloom Census 2019-20 report, there are 26,73,891 handloom weavers and 8,48,621 allied workers in handloom sector across the country. Fiinews.com
