Context

In his Mann Ki Baat address, Prime Minister Narendra Modi highlighted the growing strength of India’s textile industry, noting the rise of over 3,000 textile start-ups, many of which are reviving and globalizing India’s handloom heritage.
This year also marks the 10th anniversary of National Handloom Day.

Overview of India’s Textile Industry

Key Challenges Facing the Sector

1. Structural Fragmentation
   • Highly unorganised, especially in handloom and powerloom sectors.
   • Predominance of small-scale units with limited scale and investment.
2. Technological Obsolescence
   • Outdated machinery results in low productivity and inferior quality.
   • Higher operational costs compared to competitors like China and Bangladesh.
3. Infrastructure Deficiencies
   • Inefficient logistics, electricity shortages, and high energy costs increase overheads.
4. Environmental Concerns
   • High water and chemical usage in processing.
   • Non-compliance leads to penalties, shutdowns, or bans on exports.
5. Global Competition
   • Faces stiff pricing competition from low-cost textile producers.
   • Limited FTAs with key markets like the EU restrict access.
6. Export Market Volatility
   • Trade barriers, economic downturns, and shifting global demand patterns disrupt exports.

Government Initiatives to Strengthen the Sector

Make in India

Boosted textile production and exports through reforms, infrastructure development, and incentives.

PLI Scheme for Textiles

• Focus: Man-Made Fibres (MMF) and Technical Textiles
• Offers financial incentives to large-scale producers.

PM MITRA Parks

• Aim: Develop world-class, integrated textile parks across India.
• 7 Parks announced in Gujarat, Maharashtra, Madhya Pradesh, Tamil Nadu, Karnataka, Uttar Pradesh, and Telangana.

ATUFS (Amended Technology Upgradation Fund Scheme)

• Provides capital subsidies for tech upgrades in textile units.

Samarth Scheme

• Skilling initiative in collaboration with the Ministry of Skill Development.
• Trains youth and women in textile sector-specific skills.

Textile Cluster Development Scheme (TCDS)

• Supports development of shared infrastructure, linkages, and financial viability in clusters.

National Technical Textiles Mission (NTTM)

• Focus:
  • Research and Innovation
  • Promotion and Market Expansion
  • Education & Skill Development
  • Export Promotion
• Goal: Make India a global leader in technical textiles.

Budgetary Support

• ?5,272 crore allocated to the Ministry of Textiles for FY 2025–26
• 19% increase over the 2024–25 Budget Estimates

Conclusion

India’s textile sector stands at a transformative juncture. Strategic initiatives under Make in India, infrastructure investments, and targeted schemes like PLI and PM MITRA are positioning India to emerge as a global textile manufacturing hub.
With sustained policy push, private sector innovation, and global outreach, the sector can drive economic growth, employment, and export competitiveness.