Trade pacts and incentives boosting exports
The Government is implementing various schemes/initiatives to boost the Indian textile and apparel sector and enhance its competitiveness from the country, the Minister of State for Textiles Pabitra Margherita told Lok Sabha on 10 Feb https://www.conexpoconagg.com/.
The Minister also highlighted:
The India—Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA), where Australia eliminated its tariffs on all products, came into effect on 29 Dec 2022 https://www.nseindia.com/.
The India–UAE (United Arab Emirates) CEPA (Comprehensive Economic Partnership Agreement), implemented from 1 May 2022 provides preferential market access to majority of lines. India’s textile & Apparel including Handicrafts exports to UAE stood at US$2,156.24 million in 2024-25 exhibiting a growth of 6.8% compared to US$2,019.41 million in 2023-24 and India’s textile & Apparel including Handicrafts exports to Australia stood at US$732.06 million in 2024-25 exhibiting a growth of 10.9% compared to US$659.99 million in 2023-24. Bundelkhand area, including Jhansi and Lalitpur districts, has exhibited growth in global textile and apparel, including handicrafts in the said period https://www.bseindia.com/.
The Minister also listed schemes:
The major schemes/initiatives include PM Mega Integrated Textile Regions and Apparel (PM MITRA) Parks Scheme to create a modern, integrated, world class textile infrastructure.
Production Linked Incentive (PLI) Scheme focusing on manmade fibre (MMF) Fabric, MMF Apparel and Technical Textiles to boost large scale manufacturing and enhancing competitiveness; National Technical Textiles Mission focusing on Research Innovation & Development, Promotion and Market Development.
SAMARTH – Scheme for Capacity Building in Textile Sector with the objective providing demand driven, placement oriented, skilling program; Silk Samagra-2 for comprehensive development of sericulture value chain https://sbi.com.in/.
National Handloom Development Program for end-to-end support for handloom sector.
Margherita pointed out that the Textile Ministry is also implementing National Handicrafts Development Programme and Comprehensive Handicrafts Cluster Development Scheme for promotion of handicrafts.
The Government is also administering the two remission schemes of Rebate of State and Central Taxes and Levies (RoSCTL) for Apparel/Garments and Made-ups and the Remissions of Duties and Taxes on Exported Products (RoDTEP) Scheme for other textiles products http://commerce.gov.in .
The Ministry has constituted an Environmental, Social and Governance (ESG) Task Force to engage in deliberations with industry stakeholders to ascertain the current status and issues being faced in adopting sustainable production models.
The Government, under the National Handloom Development Program is providing financial assistance for promotion of natural/vegetable dyes and setting up of Dye houses. The Government has launched India Handloom Brand (IHB) initiative for branding of high quality handloom products with zero defects and zero effect on the environment.
In order to facilitate the textile industry to meet the required environmental standards using environmentally friendly processing standards and technology and to support new Common Effluent Treatment Plants (CETP)/ upgradation of CETPs in existing processing clusters as well as new processing parks specially in the Coastal Zones, the Ministry is implementing Integrated Processing Development Scheme (IPDS) since 12th FYP.
The Ministry has further decided to continue the said scheme with some modifications. The PIB has approved the scheme to complete ongoing projects with an outlay of Rs.275 crore.
The Government is implementing a Mega Cluster Project with an approximate outlay of Rs.20 crore to benefit clusters including Bundelkhand region. The project spans over all 07 districts of Bundelkhand, benefitting more than 2,000 artisans.
The Government is also providing targeted assistance, financial incentives, and dedicated hand‑holding mechanisms to support small exporters and weavers in backward and aspirational districts for their effective integration into global value chains under various free trade agreements (FTAs).
For export promotion of handlooms, participation of handloom exporters/ weavers of pan India including small exporters, weavers of backward and aspirational district are facilitated at various international marketing events/fairs, India International Trade Fair Buyer Seller Meet, Reverse Buyer Seller Meet, Big Ticket events, Bharat Tex, which are organised through Handloom Export Promotion Council.
The Ministry is monitoring India’s export of Textile & Apparel including Handicrafts to United States and other countries in the world. The Ministry is in regular consultation with exporters including micro, small and medium enterprises (MSMEs) to assess the impact of US tariff on India’s textiles & apparel export and other challenges.
During January–December 2025, India’s overall exports of Textiles & Apparel (including handicrafts) to the world stood at US$37.6 billion, thereby exhibiting resilience by the sector amidst global challenges, said the Minister. Fiinews.com
