COMPETITIVENESS OF INDIA’S TEXTILES SECTOR

**Executive Summary** This document, dated December 19, 2025, outlines the Indian government's efforts to boost the competitiveness of the Indian textiles sector. These include schemes to enhance infrastructure, production, research, and export promotion. A key deadline mentioned is December 31, 2025, for the import duty exemption on cotton. **Key Points / Main Content** * **Sector Overview:** * India's textiles and apparel exports (including handicrafts) reached US$ 37,755.0 Mn in FY 2024-25, showing 5.2% growth. * India possesses a strong domestic raw-material base and manufacturing capabilities. * **Government Initiatives:** * Implementing schemes to boost the Indian textile and apparel sector. * Major schemes include: * PM MITRA Parks Scheme: To create modern, integrated textile infrastructure. * PLI Scheme: Focuses on MMF Fabric, MMF Apparel, and Technical Textiles to boost large-scale manufacturing. * National Technical Textiles Mission: Focuses on Research Innovation & Development, Promotion, and Market Development. * SAMARTH Scheme: Capacity building in the textile sector through demand-driven, placement-oriented skilling programs. * Silk Samagra-2: For comprehensive development of sericulture value chain. * National Handloom Development Program: For end-to-end support for the handloom sector. * National Handicrafts Development Programme and Comprehensive Handicrafts Cluster Development Scheme: for promotion of handicrafts. * **Recent Measures:** * Extension of Export Obligation period under the Advance Authorisation Scheme. * Revision of the PLI Scheme for MMF Apparel, MMF Fabrics and Technical Textiles to ease entry and investment norms. * Exemption of import duty on cotton up to 31.12.2025. * Rationalization of GST rates across the value chain. * **Trade and Export Promotion:** * Aiming for export diversification with 40 focus markets. * Signed 15 Free Trade Agreements (FTAs) and 6 Preferential Trade Agreements (PTAs). * Export Promotion Mission implemented through NIRYAT PROTSAHAN and NIRYAT DISHA for trade finance, market access, branding, compliance. * Credit Guarantee Scheme for Exporters, particularly benefitting MSMEs, providing 100% credit guarantee. **Impact Analysis** **Textile Manufacturers** *Impact:* Beneficiaries of government schemes like PM MITRA and PLI, leading to increased production and competitiveness. *Action Required:* Understand and apply for relevant schemes, adapt to revised GST rates, and leverage export promotion opportunities. **Exporters** *Impact:* Beneficiaries of export promotion schemes, FTAs/PTAs, and the Credit Guarantee Scheme. *Action Required:* Utilize export promotion resources, explore new markets identified in the export diversification plan, and take advantage of trade agreements. **MSMEs** *Impact:* Improved access to credit through the Credit Guarantee Scheme. *Action Required:* Apply for the Credit Guarantee Scheme and explore opportunities for market access and branding through the Export Promotion Mission. **Cotton Importers** *Impact:* Benefitting from the import duty exemption on cotton. *Action Required:* Take note of the import duty exemption up to December 31, 2025.

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