**Executive Summary**
This report provides an assessment of India's textile and apparel trade performance from April 2025 to January 2026, highlighting a significant trade surplus and a 3.3% export growth in Tamil Nadu. The document outlines various government initiatives, including the Export Promotion Mission (EPM) active through FY 2030–31, designed to enhance competitiveness and credit access. Key updates include enhanced ECGC credit cover effective from October 1, 2025, and various financial guarantee schemes for MSMEs.
**Key Points / Main Content**
**Trade Performance (April 2025 – January 2026)**
* **National Status:** India maintained a healthy trade surplus, with exports reaching ₹2,68,951.5 crore against imports of ₹83,590.9 crore.
* **Regional Growth:** Tamil Nadu’s exports stood at ₹57,858.7 crore (3.3% growth), with Erode district contributing ₹2,290 crore.
**Sectoral Development and Skilling**
* **PLI Scheme:** Focuses on Man-Made Fibre (MMF) fabrics, apparel, and technical textiles to boost large-scale manufacturing.
* **SAMARTH:** A skilling program providing demand-driven and placement-oriented training for capacity building.
* **Specialized Missions:** Includes the National Technical Textiles Mission for R&D and Silk Samagra-2 for the sericulture value chain.
* **Traditional Sectors:** End-to-end support is provided via the National Handloom Development Program and the Comprehensive Handicrafts Cluster Development Scheme.
**Export Incentives and Tax Remissions**
* **Zero-Rated Exports:** Implementation of RoSCTL for apparel and made-ups, and RoDTEP for other textile products, to rebate state and central taxes.
* **Export Promotion Mission (EPM):** Approved for FY 2025–26 to FY 2030–31, focusing on financial enablers (NiryatProtsahan) and market access (NiryatDisha).
**Financial and Credit Support Measures**
* **Credit Guarantee Scheme for Exporters (CGSE):** Provides collateral-free credit and additional support up to 20% of existing working capital limits for MSMEs.
* **Mutual Credit Guarantee Scheme (MCGS-MSME):** Offers credit guarantee cover for term loans up to ₹100 crore specifically for purchasing equipment and machinery.
* **ECGC Enhancements:** As of October 1, 2025, bank cover for export credit loans increased to 90% for limits up to ₹50 crore (previously ₹20 crore).
**Impact Analysis**
**Textile and Apparel Manufacturers**
**Impact**
Manufacturers benefit from infrastructure support and skilling initiatives that enhance large-scale production capabilities and global competitiveness.
**Action Required**
Engage with the PLI and SAMARTH schemes to upgrade manufacturing scales and workforce expertise.
**Micro, Small, and Medium Enterprises (MSMEs)**
**Impact**
MSMEs gain significantly improved access to finance through collateral-free credit, higher loan limits, and specific guarantees for machinery procurement.
**Action Required**
Apply for credit support under the CGSE and MCGS-MSME schemes to secure working capital and modernize equipment.
**Exporters**
**Impact**
Exporters see reduced costs through tax remissions and lower financial risks due to enhanced ECGC covers and market-access support through the Export Promotion Mission.
**Action Required**
Utilize RoSCTL/RoDTEP for tax rebates and leverage the NiryatProtsahan and NiryatDisha sub-schemes for trade finance and market expansion.
Key Entities Referenced
Ministry of Textiles: The primary government department responsible for monitoring textile imports/exports and implementing sector-specific developmental schemes.
Production Linked Incentive (PLI) Scheme: A major initiative focusing on MMF fabric, apparel, and technical textiles to boost large-scale manufacturing and competitiveness.
Scheme for Export Promotion Mission (EPM): A strategic mission for FY 2025–26 to FY 2030–31 aimed at strengthening India’s export competitiveness, particularly for MSMEs.
Rebate of State and Central Taxes and Levies (RoSCTL): A key scheme designed to enhance the competitiveness of apparel and made-up exports by implementing the principle of zero-rated exports.
Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME): A government-backed initiative providing credit guarantees to facilitate easier access to loans for MSMEs to purchase equipment and grow businesses.
Ministry of Textiles
ASSESSMENT OF IMPORTS IN TEXTILE
INDUSTRY
Posted On: 27 MAR 2026 2:56PM by PIB Delhi
The Government is regularly monitoring India’s exports and imports of Textiles & Apparel, including
handicrafts, across global markets. The export of Textile and Apparel products from Erode district during
the period from April 2025 to January 2026 stood at ₹ 2,290 crore. During the period April 2025 to
January 2026, Tamil Nadu’s exports of textiles and apparel (including handicrafts) stood at ₹57,858.7
crore, registering a growth of 3.3% over the corresponding period of the previous year. During the same
period, India’s imports of textiles and apparel (including handicrafts) across all districts were ₹83,590.9
crore, while exports stood at ₹2,68,951.5 crore, thereby reflecting a healthy trade surplus in the sector.
The Government is implementing various schemes/initiatives to boost the Indian textile and apparel sector
and enhance its competitiveness from Country and these steps are boosting the export from Country
including Tamil Nadu.
Major schemes/initiatives include Production Linked Incentive (PLI) Scheme focusing on 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; National Handloom Development Program for end to end support
for handloom sector. Ministry of Textiles is also implementing National Handicrafts Development
Programme and Comprehensive Handicrafts Cluster Development Scheme for promotion of handicrafts.
The Government is also implementing Rebate of State and Central Taxes and Levies (RoSCTL) scheme
for Apparel/Garments and Made-ups to enhance competitiveness by adopting principle of zerorated
exports. Further, textiles products not covered under the RoSCTL scheme are covered under Remissions
of Duties and Taxes on Exported Products (RoDTEP) along with other products.
In addition, the Government has approved the Scheme for Export Promotion Mission (EPM) for the
period FY 2025–26 to FY 2030–31, aimed at strengthening India’s export competitiveness - particularly
for MSMEs. The Mission is implemented through two integrated sub-schemes: NiryatProtsahan, which
focuses on financial enablers and trade-finance support, and NiryatDisha, which addresses non-financial,
market-access and ecosystem enablers. The government of India has also approved the Credit Guarantee
Scheme for Exporters (CGSE) to provide additional credit support up to 20% of existing working capital
limits to eligible borrowers, particularly MSMEs By enabling collateral-free credit access under CGSE.
The government has introduced Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME), a
government-backed initiative designed to help Micro, Small, and Medium Enterprises (MSMEs) access
loans to grow their businesses. This scheme offers a credit guarantee, making it easier for MSMEs to
obtain loans, especially for purchasing essential equipment and machinery. The Scheme provides creditguarantee cover to lenders (Scheduled Commercial Banks, All India Financial Institutions, NBFCs) for
their term loans up to Rs.100 crore to MSMEs for their projects involving purchase of
equipment/machinery.
The Reserve Bank of India has also undertaken a comprehensive set of measures to improve credit flow to
the MSME sector, focusing on enhancing access, affordability, and timeliness of finance.
The Export Credit Guarantee Corporation of India (ECGC) has also been introduced several measures to
support MSME exporters such as Collateral-Free Cover under WT-ECIB, enhanced 90% cover for banks
on export credit loans up to 50 crore ₹(earlier 20 crore) without incremental cost, w.e.f. 01.10.2025,
enhanced cover for banks and directly sourced business, etc.
This information was provided by THE MINISTER FOR TEXTILES SHRI GIRIRAJ SINGH in a written
reply to a question in Rajya Sabha on 20th March 2026.
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MAM/VN
(Rajya Sabha USQ 3360)
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