Contents:

1. Threads of Progress

Threads of Progress

Introduction

• The Make in India initiative (launched in 2014) has significantly boosted textile manufacturing and exports.
• The textile sector is a key contributor to India’s GDP, employment, and foreign exchange earnings.
• Government policies, infrastructure development, and a skilled workforce have strengthened India’s position as a global textile hub.

Relevance : GS 3(Economy , Export)

Overview of India’s Textile Industry

• Contribution to Economy:
  • 2.3% of GDP
  • 13% of industrial production
  • 12% of total exports

• Export Performance (2023-24):
  • Total exports: US$ 34.4 billion
  • Apparel: 42% | Raw materials/semi-finished materials: 34% | Finished non-apparel goods: 30%

• Employment Generation:
  • 45 million+ direct jobs (one of the largest employment sectors after agriculture)
  • 80% MSME dominance (decentralized production clusters)
  • Significant employment for women and rural youth

• Growth Trends:
  • Indian textile market size: US$ 174 billion → US$ 350 billion by 2030
  • 7% increase in textile and apparel exports (April–December 2024 YoY growth)
  • Ranked 5th globally, with a target growth rate of 15-20% in the next five years

Impact of ‘Make in India’ on the Textile Industry

• Boosted domestic manufacturing & exports through key policy interventions
• Union Budget 2024-25:
  • Added two more types of shuttle-less looms under fully exempted textile machinery
  • Encouraged investment in advanced textile manufacturing

Major Government Schemes:

1. Production Linked Incentive (PLI) Scheme for Textiles
   1. Budget: ₹10,683 crore
   1. Focus: Man-made fibre (MMF) & technical textiles
   1. Provides financial incentives for large-scale textile manufacturers

• PM MITRA Parks (Mega Integrated Textile Region and Apparel)
  • Budget: ₹4,445 crore (2021-2028)
  • Objective: Develop integrated textile industrial hubs
  • 7 PM MITRA Parks established in Gujarat, Maharashtra, MP, Tamil Nadu, Karnataka, UP, Telangana
  • Benefits: Reduced logistics costs, increased FDI, enhanced global competitiveness

• Amended Technology Upgradation Fund Scheme (ATUFS)
  • Budget: ₹17,822 crore
  • Aim: Capital subsidies for technology upgradation

• Samarth (Skill Training for Textile Industry)
  • Budget (FY 2023-24): ₹115 crore
  • Beneficiaries trained: 3.82 lakh (77.74% placed)

• Textile Cluster Development Scheme (TCDS)
  • Budget: ₹853 crore
  • Generated 1.22 lakh jobs (as of March 2025)

• National Technical Textiles Mission (NTTM)
  • Budget: ₹1,480 crore (2020-2026)
  • 168 projects worth ₹509 crore approved
  • Focus: Research, innovation, skill development, and export promotion

Budget Allocations for Ministry of Textiles (2025-26)

• Total outlay: ₹5,272 crore (19% increase over 2024-25)
• Key initiatives:
  • Cotton Mission: Improve cotton productivity, particularly extra-long staple varieties
  • Tax Exemptions on Looms: Shuttle-less looms exempted from customs duty
  • Higher Customs Duty on Knitted Fabrics: To curb cheap imports
  • MSME Focus: Policies like National Manufacturing Mission, Export Promotion Mission, Bharat Trade Net, Fund of Funds

Export Growth & Market Expansion

• India is the 6th largest textile exporter globally
• Textile & apparel exports share: 8.21% of India’s total exports
• Major Markets:
  • USA & EU (47% of total textile exports)
  • FTA Agreements with UAE, Australia, and EFTA (Switzerland, Norway, Iceland, Liechtenstein)

• Key Export Incentives:
  • Rebate of State and Central Taxes and Levies (RoSCTL)
  • PLI Scheme: ₹1,355 crore turnover (₹166 crore exports)
  • Quality Control Orders (QCOs): To curb sub-standard imports
  • Export Promotion Councils (EPCs): 11 councils promoting textiles

Foreign Direct Investment (FDI) in Textiles

• Total FDI (2000–2024): US$ 4.47 billion (₹28,304 crore)
• FDI Growth Factors:
  • Make in India policies
  • PM MITRA Parks
  • Trade Agreements

Bharat Tex 2024 & 2025 – India’s Global Textile Expo

• Bharat Tex 2024 (Feb 26–29, 2024)
  • 3,500 exhibitors | 3,000 buyers | 1 lakh+ trade visitors
  • Topics: Sustainability, supply chain resilience, Manufacturing 4.0

• Bharat Tex 2025 (Feb 14–17, 2025)
  • 5,000+ exhibitors | 1.2 lakh+ trade visitors | 120+ countries
  • Expanded global textile trade footprint
  • Vision: “Farm to Fibre, Fabric, Fashion & Foreign Markets”

Cotton Industry in India

• Importance: Contributes ~24% to global cotton production, supports millions of farmers and workers.
• Global Standing: Largest cotton acreage, 36th in productivity, 2nd largest producer and consumer.
• Cotton Species: India grows all four species – G. Arboreum, G. Herbaceum, G. Barbadense, and G. Hirsutum.
• Major Growing Zones: Northern, Central, and Southern India.

Government Initiatives

• MSP Operations: Ensuring remunerative prices for farmers.
• Cott-Ally Mobile App: Assistance for cotton farmers.
• Aadhar-based Farmer Registration: For MSP benefits.
• E-Auction: Transparent cotton stock sales.
• Blockchain-Based QR Codes: Traceability.
• Kasturi Cotton Bharat Programme: Branding of Indian cotton.

Silk Industry in India

• Significance: Called the “Queen of Textiles,” India is the 2nd largest producer and largest consumer globally.
• Silk Varieties: India produces all four commercial silk types – Mulberry, Tasar, Muga, and Eri.

Government Support

• Central Silk Board (CSB): Under the Ministry of Textiles, established in 1948.
• Scheduled Caste Sub Plan (SCSP) & Tribal Sub Plan (TSP): Implemented under the Silk Samagra Scheme.
• ₹25 crore allocated (2023-24): For SCSP implementation.
• R&D Focus: Soil testing, organic farming, silkworm by-products, reeling tech upgrades, and automatic reeling machines.
• Make in India Initiative: Promotes domestic silk production.
• Design & Diversification: Encourages new product development.

Jute Industry in India

• Economic Importance: Key to Eastern India, especially West Bengal, providing significant employment.
• Employment: 4 lakh workers in organized mills; supports 40 lakh farm families.
• Jute Mills: 116 composite mills; 86 in West Bengal.
• Government Support: MSP operations by Jute Corporation of India; direct jute sacking purchases.
• Production & Export:
  • Average Land under Jute Cultivation: 799 thousand hectares.
  • Average Raw Jute & Mesta Production: 10,990 thousand bales.
  • Average Jute Goods Export: 133 thousand MT (~₹21,150 million annually).

Government Initiatives

• Jute-ICARE Scheme: Enhances fibre quality, productivity, and farmer income.
• National Jute Board: Implements sectoral schemes.
• Promotion of Jute Products: To boost domestic and export demand.

Innovation in Textiles

• Startup India & DPIIT collaboration:
  • Conducted Innovation Challenges
  • 9 winners awarded & incubated

• Technical Textile Innovations:
  • Focus on smart fabrics, eco-friendly textiles, and technical textiles

• Investment in R&D:
  • Government funding innovation in sustainable textile production

Challenges & Way Forward

Key Challenges:

• High raw material costs (cotton & MMF)
• Competition from low-cost producers (Bangladesh, Vietnam, China)
• Infrastructure gaps (port efficiency, logistics)
• Low share in global MMF textile trade