This document summarizes government policies and initiatives that support India's textile industry. It discusses the size and scope of the textile sector and its sub-sectors like handlooms, powerlooms, silk, cotton, and jute. It outlines various schemes to promote these industries through credit access, infrastructure development, skills training, technology upgrades, marketing support, and more. Key initiatives include the Amended Technology Upgradation Fund Scheme, integrated textile parks, and the New Textiles Policy 2020. The textile industry is an important part of the Indian economy and the government continues to introduce policies to strengthen it.

1. Government policies in textile
and its different sector
By - Iti dubey

2. Introduction
• India’s textiles sector is one of the oldest industries
in Indian economy dating back several centuries.
• The Indian textiles industry is extremely varied, with
the hand-spun and hand-woven textiles sectors at
one end of the spectrum, while the capital-intensive
sophisticated mills sector at the other end of the
spectrum. The decentralized power looms/ hosiery
and knitting sector form the largest component of the
textiles sector.
• The Indian textile industry has the capacity to
produce a wide variety of products suitable to
different market segments, both within India and
across the world.

3. Market Size
• The Indian textiles industry, currently
estimated at around US$ 150 billion, is
expected to reach US$ 250 billion by
2019.
• India’s textiles industry contributed seven
per cent of the industry output (in value
terms) of India in 2018-19.
• It contributed two per cent to the GDP of
India and employs more than 45 million
people in 2018-19.

4. • The sector contributed 15 per cent to
the export earnings of India in 2018-
19.
• The textile industry has around 4.5
crore workers employed in textiles
sector including 35.22 lakh handloom
workers all over the country.
• The production of raw cotton in India
is estimated to have reached 33.7
million bales.

5. Investment
• The textiles sector has witnessed a
spurt in investment during the last
five years. The industry (including
dyed and printed) attracted Foreign
Direct Investment (FDI) worth US$
3.41 billion from April 2000 to
December 2019.

6. Government Initiatives
• The Indian government has come up with a
number of export promotion policies for the
textiles sector. It has also allowed 100 per cent
FDI in the Indian textiles sector under the
automatic route.
Initiatives taken by Government of India are:
• Under Union Budget 2020-21, a National
Technical Textiles Mission is proposed for a
period from 2020-21 to 2023-24 at an estimated
outlay of Rs 1,480 crore (US$ 211.76 million).
• In 2020, New Textiles Policy 2020 is expected to
be released by the Ministry of Textiles.

7. • CCEA approved mandatory packaging of foodgrains
and sugar in jute material for the Jute Year 2019-20.
• In September 2019, textile exports witnessed an
increase of 6.2 per cent post GST as compared to
period pre-GST.
• The Directorate General of Foreign Trade (DGFT) has
revised rates for incentives under the Merchandise
Exports from India Scheme (MEIS) for two subsectors
of Textiles Industry - Readymade garments and Made
ups - from two per cent to four per cent.
• As of August 2018, the Government of India has
increased the basic custom duty to 20 per cent from
10 per cent on 501 textile products, to boost Make in
India and indigenous production.

8. • The Government of India announced a Special
Package to boost exports by US$ 31 billion, create
one crore job opportunity and attract investments
worth Rs 80,000 crore (US$ 11.93 billion) during
2018-2020. As of August 2018, it generated
additional investments worth Rs 25,345 crore (US$
3.78 billion) and exports worth Rs 57.28 billion
(US$ 854.42 million).
• The Government of India has taken several
measures including Amended Technology Up-
gradation Fund Scheme (A-TUFS), scheme is
estimated to create employment for 35 lakh people
and enable investments worth Rs 95,000 crore
(US$ 14.17 billion) by 2022.

9. • Integrated Wool Development Programme (IWDP)
approved by Government of India to provide support
to the wool sector starting from wool rearer to end
consumer which aims to enhance the quality and
increase the production during 2017-18 and 2019-
20.
• The Cabinet Committee on Economic Affairs (CCEA),
Government of India has approved a new skill
development scheme named 'Scheme for Capacity
Building in Textile Sector (SCBTS)' with an outlay of
Rs 1,300 crore (US$ 202.9 million) from 2017-18 to
2019-20. As of August 2019, 16 states have signed
pacts with the Ministry of Textiles to partner with it
for skilling about four lakh workers under the
scheme.

10. Achievements
• Following are the achievements of the
government in the past four years:
• I-ATUFS, a web-based claims monitoring, and
tracking mechanism was launched on April 21,
2016.
• 381 new block level clusters were sanctioned.
• Under the Scheme for Integrated Textile Parks
(SITP), 59 textile parks were sanctioned out of
which 22 have been completed.
• Employment increased to 45 million in FY19 from
8.03 in FY15.

11. Growth Drivers
• Abundance of raw material
• Presence of entire value chains
• Competitive manufacturing costs
• Availability of skilled manpower
• Large and growing domestic market
• Rising per capita income, higher disposable incomes
and preferences for brands
• Organized retail landscape & e-Commerce
• Increased focus on technical textiles due to growth of
end-user industries such as automotive, healthcare,
infrastructure and oil and petroleum

12. • The Ministry of Textiles through the Textile
Committee provides information on the various
schemes available for the textile sector. The
schemes are aimed at providing holistic benefits
and growth opportunities to this sector.
These schemes are:
• Power-loom sector.
• Technology upgradation.
• Cluster development programme/ integrated textile
parks.
• Integrated Skill Development Scheme.
• Technical Textiles

13. Handloom sector
• Comprehensive Handloom Cluster Development
Scheme
• Comprehensive Handlooms Development Scheme
• Revival, Reform and Restructuring Package
• Yarn Supply Scheme
North Eastern Region Textile Promotion Scheme
• Cluster Development Project in NER
• Technological Upgradation of Handlooms in NER
• Market Promotion of Textiles and Handloom Products in
NER

14. Handlooms Weavers Comprehensive
Welfare Scheme
• Mahatma Gandhi Bunkar Bima Yojana
• Health Insurance Scheme
Enforcement Wing
• Central assistance for Implementation of the
Handlooms (Reservation of the Articles for
Production) Act 1985

15. HANDLOOM SECTOR
Block Level Clusters (BLCs):
• Block Level Clusters (BLCs) are one of the
components of National Handloom Development
Programme (NHDP)/Comprehensive Handloom
Cluster Development Scheme (CHCDS). 412 BLCs
covering 3,18,347 beneficiaries have been
sanctioned since July, 2015 with project cost of
Rs. 557.59 crore.Rs. 212.77 crore has been
released as Central share.

16. Weaver Mudra Scheme:
• Under the Weaver Mudra Scheme, credit at
concessional interest rate of 6% is being provided
to the handloom weavers. Margin money
assistance to a maximum of Rs. 10,000 per weaver
and credit guarantee for a period of 3 years is also
provided. 81,615 MUDRA loans worth Rs. 443.52
crore have been sanctioned under the scheme.
MUDRA platform adopted in September, 2016 for
providing concessional credit. Procedure for loan
application on MUDRA platform is user friendly for
withdrawal of loan amount using RuPay card
through ATMs.

17. Handloom Weaver Mudra Portal
• This portal is operation from 1stof April, 2017, in
association with Punjab National Bank to cut down
delays in disbursement of funds for financial
assistance. Bank claims worth rs. 25 cr. have been
settled through this portal. Participating banks
submit the claim for margin money, interest
subvention and credit guarantee fee on the portal
and the margin money is transferred directly to loan
account of the weaver and interest subvention and
credit guarantee fee is transferred to banks in
electronic mode.

18. India Handloom Brand
• Sales of handloom products to the tune of Rs.582.93
crore has been generated as on 31.10.2018. 1185
registrations have been issued under 122 product
categories. The India Handloom Brand was
launched by the Prime Minister on First National
Handloom Day on 7th August 2015 for branding of
high quality handloom products, authentic designs
with zero defect and zero effect on environment.

19. Bunkar Mitra
• A toll free helpline no. 18002089988 was set up
to deal with queries of handloom weavers. 22,033
queries of handloom weavers concerning wide
range of issues like technical, supply of raw
material, quality control, credit facility, access to
market linkages were resolved upto 30.11.2018
through the Bunkar Mitra Helpline. The Helpline,
set up in April 2017, provides single point contact to
handloom weavers across the country for
addressing their professional queries 7 days a week.
Services are available through toll-free number in
seven languages: Hindi, English, Tamil, Telugu,
Bengali, Assamese and Kannada.

20. Handlooms Promotion through
e-Marketing
• To promote e-marketing of handloom products,
21 e-commerce entities have been engaged for on
– line marketing of handloom products. So far,
total sales of Rs. 21.25 crores have been
generated.
• To empower the weavers, and their families for
career progression, memorandums of
Understanding signed with Indira Gandhi National
Open University (IGNOU) and National Institute of
Open Schooling (NIOS). Ministry is providing
reimbursement of 75% of the fee in NIOS/IGNOU
courses for SC, ST, BPL and women learners.

21. POWERLOOM SECTOR
• In-site Upgradation of Plain Powerlooms:
197775 looms were upgraded and Rs.248.77 crores
released.
• Group Workshed Scheme (GWS):1034 projects
approved and Rs.85.64 crores released.
• Yarn Bank Scheme:73 Yarn Bank projects
approved and Rs.23.263 crores released.
• Common Facility Centre (CFC):20 projects have
been approved and Rs.3.944 crores released.
• Facilitation, IT, Awareness, Market
Development and Publicity for PowerLoom
Schemes: Rs.15.779 crores released.

22. • Tex Venture Capital Fund:Rs.9.34 crore has
been disbursed by SVCL to four companies so far.
• Grant-in-Aid to Power loom Service
Centres:Rs.22.99 crores released.
• Modernization of Power loom Service
Centres: Rs.3.39 crores released.
• A dedicated website www.ipowertexindia.gov.in has
been launched for applying various scheme under
Power Tex India.
• Online portal and mobile app operational from
1.12.2017.
• Beneficiary can track the status online on Mobile
app.

23. HANDICRAFT SECTOR
• Programmes Conducted and Artisans
Benefitted during Last Four and Half Years:
• Ambedkar Hastshilp Vikas Yojana: 435
programme organized amounting to Rs 58.40
Crores benefiting 306583 artisans.
• Design and Technology Upgradation: 756
programme organized amounting to Rs. 53.33
Crores benefiting 29570 artisans.
• Marketing Support and Services: 788
programme organized amounting to Rs 87.61
Crores benefiting 58526 artisans.

24. • Human Resource Development: 2182
Training programme organized amounting to Rs
93.07 Crores benefiting 46481 artisans.
• Research and Development: 702 programme
organized amounting to Rs 23.39 Crores
benefiting 17550 artisans.
• Direct Benefit to Artisans: Rs 58.40 Crores
sanctioned benefiting 478089 artisans.
• Infrastructure & Technology Support: Rs
98.76 Crores sanctioned to provide infrastructural
support.
• Comprehensive Handicrafts Cluster
Development (Mega Cluster): Rs. 226.65
Crores sanctioned benefiting 71915 artisans.

25. • Hastkala Sahyog Shivirs organized at 302 places
all over the country, in which 73291 artisans
participated. 5155 tool kits distributed, 814
• Mudra Loan sanctioned, 695 marketing events
were organized during the camp during the financial
year 2017-18.
• Handicrafts Awards to 23 Shilp Gurus and 65
National Awardees (including 15 Women artisans)
have been given to Handicraft artisans since 2014 to
2016.
• The new component of Margin Money has been
approved in the month of October 2018, introduced
for implementation for the benefit of artisans
availing Mudra Loan @ 20% of the sanctioned loan
amount subject to a maximum of Rs.10,000

26. SILK INDUSTRY
Integrated Scheme for Development of Silk
Industry :
• The Cabinet Committee on Economic Affairs
approved the Central Sector Scheme
"Integrated Scheme for Development of Silk
Industry" for three years from 2017-18 to
2019-20.
The Scheme has four components:
• Research & Development (R&D), training,
transfer of technology and IT initiatives

27. • Seed organizations and farmers’ extension
centers
• Coordination and market development for seed,
yarn and silk products and
• Quality Certification System (QCS) by creating
amongst others a chain of silk testing facilities,
farm based & post-cocoon technology up-
gradation, and export brand promotion.

28. COTTON
MSP Operation of Seed Cotton (Kapas)
• To ensure remunerative prices to cotton farmers,
Government fixes Minimum Support Prices (MSPs)
of seed cotton (kapas) every year.
• Minimum Support Price (MSP) of cotton for Crop
Season 2018-19 has been increased by Rs. 1,130/-
per quintal over last year.
• Cotton Corporation of India (CCI) is the Central
Nodal Agency for undertaking Price Support
Operations of Cotton.
• CCI undertakes MSP Operation when market rate of
seed cotton falls below the MSP rates.

29. COTTON CORPORATION OF INDIA
(CCI)
• CCI has put in place many innovative measures:
• Adopted ERP system ‘PRAGTI’ to enabled the CCI
with fast access of all the important information of its
branches and corporate office.
• Developed computer based programme for
identification of cotton farmers.
• Initiated 100% online payment directly in the
account of cotton farmers to ensure the full benefit of
MSP and to avoid middlemen.
• Developed farmer friendly mobile app ‘Cott-Ally’ to
keep the cotton farmer informed about policy
initiatives in respect of cotton and steps taken by CCI
for implementation of MSP.

30. • CCI commenced the 100% sales of Lint
cotton bales and cotton seed through online
e-auction system.
• Developed warehouse management system
for online stock management.
• Started monitoring the branch
operations/meeting with the branch heads
through video conferencing in order to save
time and money.
• Adopted 100% cashless transactions.

31. Revival of National Textile
Corporation (NTC)
• With net worth turning positive, NTC
ceased to be a sick company and
came out of the purview of Board for
Industrial and Financial
Reconstruction (BIFR). As on
31st March 2018 its net worth stood at
Rs. 1,885.87 crore.

32. Wool Sector
• A total grant of Rs.41.47 crore released under
Pashmina Scheme for 4 years. (2014-15 to 2017-18)
• Foundation stock of animals distributed to 340 families
in Leh and Kargil.
• Distributed 459 high quality Pashmina bucks for breed
improvement.
• Health coverage and medicines to 2 lakh Pashmina
goats annually and feed supplement was given to
40,000 goats annually.
• Strengthened 3 breeding farms & 3 fodder banks and
established 3 pasture farms on migratory routes.

33. • Pashmina productivity per goat enhanced by
9.30%.
• Provided 775 tents and 100 houses for nomads
in Ladakh region.
• Five solarized community centres constructed.
• Benefitted 40 lakh sheep under ‘Sheep & Wool
Improvement Scheme’ (SWIS) under “Health
Care” to animals.

34. JUTE SECTOR
• Extension of Norms for Mandatory Packaging
in Jute Materials:
The Cabinet Committee on Economic Affairs
accorded its approval to expand the scope of
mandatory packaging norms under the Jute
Packaging Material (JPM) Act, 1987 as follows:
• 100% of the food grains and 20% of the sugar will
be mandatorily packed in diversified jute bags. The
decision to pack sugar in diversified jute bags will
give an impetus to the diversification of the jute
industry.

35. • Initially 10% of the indents of jute bags for packing
food grains will be placed through reverse auction on
the GeM portal. This will gradually usher in a regime of
price discovery.
• The decision will give a fillip to the development of jute
sector in increasing the quality and productivity of raw
jute, diversification of jute sector and also boosting and
sustaining demand for jute product.
• The jute industry is predominantly dependent on
Government sector which purchases jute bags of value
of more than Rs. 6,500 crore every year for packing
food grains. This is done in order to sustain the core
demand for the jute sector and to support the
livelihood of the workers and farmers dependent on the
sector.

36. Government support to the Jute Sector:
• In order to improve the productivity and quality
of raw jute through a carefully designed
intervention, called the Jute ICARE, the
Government has been supporting close to one
lakh jute farmers by disseminating improved
agronomic practices such as line sowing using
seed drills, weed management by using wheel-
hoeing and nail-weeders, distribution of quality
certified seeds and also providing microbial
assisted retting. These interventions have
resulted in enhancing the quality and productivity
of raw jute and increasing income of jute farmers
by Rs. 10,000 per hectare.

37. • To support jute farmers, Jute Corporation of India
(JCI) has been given a grant of Rs. 100 crore for 2
years starting from 2018-19 to enable it to conduct
MSP operations and ensure price stabilization in the
jute sector.
• The National Jute Board has collaborated with
National Institute of Design to support diversification
of jute sector and a Jute Design Cell has been
opened at Gandhinagar. Further, promotion of Jute
Geo Textiles and Agro-Textiles has been taken up
with the State Governments particularly those in the
North Eastern region and also with departments
such as Ministry of Road Transport and Ministry of
Water Resources.

38. • With a view to boost demand in the jute sector,
Government of India has imposed Definitive Anti-
Dumping Duty on import of jute goods from
Bangladesh and Nepal with effect from 5th January,
2017. As a result of these measures, 13 Twine mills in
Andhra Pradesh have resumed operation, benefitting
20,000 workers. Further, imposition of Definitive Anti-
Dumping Duty has provided scope for an additional
demand of 2 lakh MT of jute goods in the domestic
market for the Indian jute industry.
• With a view to promoting transparency in jute sector,
Jute SMART, an e-govt initiative was launched in
December, 2016, providing an integrated platform for
procurement of B-Twill sacking by Government
agencies. Further, the JCI is transferring 100% funds
to jute farmers online for jute procurement under MSP
and commercial operations.

39. TECHNICAL TEXTILES
• Technical textiles are textile material and products
manufactured primarily for technical performance
and functional properties rather than aesthetic and
decorative characteristics. They find application not
only in clothing but also in areas like agriculture,
medical, infrastructure, automotive, aerospace,
sports, defence and packaging. Scheme for
promoting usage of geotechnical textiles in NER
with fund outlay of Rs. 427 crore was launched for
the Financial Years 2014-15 to 2018-19

40. • 54 projects sanctioned under geotech textiles with
an outlay of more than Rs. 105 crores providing
quality infrastructure like roads, hill slope
protection and efficient water usage by water
reservoir lining.
• Eight centres of excellence, 11 focus incubation
centres, sanctioned, 10 agro-demo centres set up
and 200 agro kits distributed in 6 states with an
outlay of Rs. 208 crores since 2012-13 till 2016-
17 under technology mission on technical textiles.
• Under the scheme for promotion of usage of agro
textiles, 44 demonstration centres set up, 840
agrotextile kits were distributed to agro farmers
after training about 3841 farmers.

41. • 118 projects under scheme for research and
development for the textiles industry including
jute with a total project cost of Rs. 11,042.86
lakhs and Government of India share of Rs.
7,851.86 lakh are being supported for
development and better quality textile product.
• Technotex, India’s premier show on technical
textiles was organized in association with FICCI
to provide boost to Technical Textiles in 2014,
2015, 2016 and 2017.

42. EXPORT PROMOTION INITIATIVES
• To enhance exports of textiles including woolen, silk
and cellulose fibers from India, the Government has
enhanced rates under Merchandise Exports from India
Scheme (MEIS) from 2% to 4% for apparel, 5% to 7%
for made-ups, handloom and handicrafts from 1st
November 2017. Further, the Government has
enhanced interest equalization rate for pre and post-
shipment credit for the textile sector from 3% to 5%
from 2nd November, 2018. For the silk sector,
Government has introduced Silk Samagra Scheme to
promote R&D and brand image of Indian silk at the
global level and provide support to beneficiaries from
nursery to fabric production stage for improvement in
productivity and quality.

43. Strategy to boost exports:
• It involves diversification of markets, positioning India
in value chain and promoting collaborative exports.
• Diversify Markets: 12 markets in Vietnam,
Indonesia, South Korea, Australia, Egypt, turkey,
Saudi Arabia, Russia, Brazil, Chile, Columbia and Peru
have been identified.
• Position India in Value Chains: Pursue strategic
engagement with Bangladesh and Sri Lanka: Fabric-
Forward Policy
• Promote Collaborative exports:
• Apparel and Contract textiles
• Attract investment in textile parks
• Export traditional garments under G2G initiative

44. • Diversify products:
• Integrate Indian fabrics into demand for contract
textiles
• Supply jute bags Latin American Country (LAC)
retailers
• Create digital platform for Latin for (LAC)
countries
• Launch National Textiles Mission on Quality
and Compliance
• Strengthen quality and compliance mechanism
• Develop quality ecosystems @ Rs. 100 crore
upto 31.3.2020

45. EXPORT PROMOTION & QUALITY
ASSURANCE (EP&QA)
• Conducting technical studies in the textile
industry, under Section 4(2)(a) of the Act
• Promotion of export of textiles, under
Section 4(2)(b) of the Act.
• Establishing, adopting and recognizing
standard specifications for textiles and
packing materials, under Section 4(2)(c) of
the Act.
• Specifying the type of quality control or
inspection need to be applied to textiles
under Section 4(2)(d) of the Act.
• Providing training on the techniques of
quality control to be applied to textiles
under Section 4(2)(da) of the Act

49. TUFS benefit is available for TUFS
benchmarked machinery covering
the following activities:-
a) Cotton ginning and pressing.
b) Silk reeling and twisting.
c) Wool scouring, combing and carpet industry.
d) Synthetic filament yarn texturizing, crimping
and twisting.
e) Spinning.
f) Viscose Staple Fiber (VSF) and Viscose Filament
Yarn (VFY).
g) Weaving, knitting and fabric embroidery.
h) Technical textiles including non-wovens.
i) Garment/design studio/made-up manufacturing.
j) Processing of fibers, yarns, fabrics, garments
and made-ups.
k) Production activities of Jute Industry.

50. • Providing for inspection and
examination of textiles and
packing materials used in the packing
of textiles under Section 4(2)(e) of the
Act.
• Advising on the matters relating to
development of textile industry and
providing for such other matters as may
be prescribed by the Central
Government under Section 4(2)(i) &
4(2)( j ) of the Act, respectively.
• Classification of textiles under
Harmonized Commodity Description and
Coding System (HS).

51. SCHEME FOR INTEGRATED
TEXTILE PARK (SITP)
• The scheme has been extended and
notified for the period from 2017 to 2020.
• Total 65 textile parks.
• 20 new textile parks have been sanctioned
in the last four years from 2014-18.
• These 20 parks will be facilitating
investment up to Rs.6834 crores and
generating employment for approximately
65,000 people.
• A total of 21 parks have been completed
till date, out of which, 5 parks have been
completed in the last four years (2014-18).

52. INTEGRATED PROCESSING
DEVELOPMENT SCHEME (IPDS):
• The scheme has been extended and
notified for the period from 2017 to
2020.
• Six projects have been approved during
the last 4 years, providing relief to
about 1400 SME units and promoting
‘zero effect’ in textile processing.

53. TECHNOLOGY UPGRADATION
FUND SCHEME (TUFS)
• Amended TUFS (ATUFS) launched for
the period of 2016-2022
• Outlay Rs 17,822 crore including
committed liabilities of previous
schemes
• Guidelines modified on 02.08.2018 to
make I-TUFS an end to end solution

54. AMENDED TECHNOLOGY
UPGRADATION FUND
SCHEME (ATUFS)
• 6,468 UIDs issued under ATUFS.
• Projected investment- Rs. 24,338.75
crores.
• Projected Subsidy value Rs.1,795.50
crores.
• Total subsidy released Rs. 8156 crores.