**Executive Summary:**
This document answers questions raised in Lok Sabha Unstarred Question No. 2601 regarding high input costs in the textile industry, foreign investment, and sector integration. It outlines government initiatives to enhance competitiveness, attract investment, and support the textile value chain, including schemes like the Production Linked Incentive (PLI) and PM MITRA. Outcome details of Bharat Tex 2024 were released on 01.03.2024.
**Key Points / Main Content:**
* **Addressing High Input Costs and Competitiveness:**
* The Government is implementing various schemes nationwide to enhance the competitiveness of the textile industry, focusing on research, innovation, market development, export promotion, and capacity building.
* The Production Linked Incentive (PLI) Scheme for Textiles, with an approved outlay of Rs 10,683 crore, supports MMF Apparel, MMF Fabrics, and Technical Textiles to achieve scale and competitiveness.
* Rs. 54.5 crore has been disbursed in FY 2024-25 to participant companies under the PLI Scheme.
* **Foreign Investment and Collaboration:**
* The Government permits 100% FDI under the automatic route to encourage foreign investments in the textiles sector.
* Since 2023, the textiles sector has received FDI equity inflow worth USD 659.77 million.
* 2023: USD 359.18 million
* 2024: USD 163.70 million
* 2025 (till March): USD 136.89 million
* Bharat Tex 2024 was organized to encourage wider collaborations across the textile sector; outcome details are available via a PIB Press Release dated 01.03.2024.
* **Integrating the Textile Value Chain:**
* The PM Mega Integrated Textile Regions and Apparel Park (PM MITRA) Scheme aims to develop large-scale, integrated textile parks to improve the industry's competitiveness.
* Seven Textile Parks have been approved under the PM MITRA Scheme in Tamil Nadu, Gujarat, Karnataka, Madhya Pradesh, Uttar Pradesh, Maharashtra, and Telangana.
**Impact Analysis:**
* **Textile Companies (including Garment Units, Manufacturers of MMF Apparel, MMF Fabrics and Products of Technical Textiles, and SMEs)**
* *Impact:* Benefit from schemes designed to reduce input costs, increase competitiveness, attract investment, and improve infrastructure. The PLI scheme aims to help them achieve scale.
* *Action Required:* Participate in relevant government schemes like PLI and PM MITRA.
* **Foreign Investors/Companies**
* *Impact:* Encouraged to invest in the Indian textile sector through 100% FDI under the automatic route.
* *Action Required:* Explore investment opportunities and collaborations in the Indian textile sector.
* **Textile Export Promotion Councils**
* *Impact:* Play a role in organizing and promoting events like Bharat Tex to facilitate collaboration and investment.
* *Action Required:* Continue to support and participate in initiatives that promote the growth and development of the Indian textile industry.
Key Entities Referenced
Tamil Nadu: A state in India with garment units affected by high input costs.
Gujarat: A state in India with garment units affected by high input costs.
West Bengal: A state in India with garment units affected by high input costs.
Production Linked Incentive PLI Scheme for Textiles: A government scheme with an approved outlay of Rs 10,683 crore for MMF Apparel, MMF Fabrics and Products of Technical Textiles.
Bharat Tex 2024: An event organized by a consortium of 11 Textiles Export Promotion Councils and supported by the Ministry of Textiles to encourage wider collaborations across the textile sector.
Ministry of Textiles: The government ministry responsible for textiles in India.
PM Mega Integrated Textile Regions and Apparel Park PM MITRA Scheme: A scheme to develop large-scale and integrated world-class industrial facilities in the shape of integrated textile parks.
Karnataka: One of the states where Textile Parks have been approved under the PM MITRA Scheme.
LOK SABHA
UNSTARRED QUESTION NO. 2601
TO BE ANSWERED ON 05.08.2025
HIGH INPUT COSTS IN TEXTILES
2601. SHRI VIJAYAKUMAR ALIAS VIJAY VASANTH:
Will the Minister of TEXTILES वस्त्र मंत्री
be pleased to state :
(a) the steps taken by the Government to address high input costs including cotton, synthetic fibers, and
power which continue to affect the competitiveness of garment units, especially in the States of Tamil
Nadu, Gujarat, and West Bengal;
(b) whether the Government is aware of the financial distress faced by certain textile companies, if so,
the measures being taken to support struggling players without favouring large corporates;
(c) the number of foreign textile or machinery companies which have entered or invested in India since
2023 and the manner in which the Government has ensured that such collaborations benefit domestic
garment manufacturers;
(d) whether the Government will share the outcomes of events like Bharat Tex 2024 in terms of orders
booked, B2B deals signed, and foreign investments attracted into India’s garment sector; and
(e) the roadmap planned for integrating the Indian textile value chain—spinning, weaving, dyeing, and
garmenting—under one policy umbrella to improve efficiency for small and mid-scale players?
उत्तर
ANSWER
वस्त्र राज् य मंत्री (श्री पबित्र मार्घरे रटा)
THE MINISTER OF STATE FOR TEXTILES
(SHRI PABITRA MARGHERITA)
(a) & (b): With a view to enhance competitiveness of the textile industry, Government of India is
implementing various schemes/initiatives on Pan-India basis, including Tamil Nadu, Gujarat, and West
Bengal, focusing on areas like Research & Innovation, Market Development, Export Promotion and
Capacity Building for comprehensive development of textile value chain across the country. Further,
Production Linked Incentive (PLI) Scheme for Textiles, is being implemented with an approved outlay
of Rs 10,683 crore for MMF Apparel, MMF Fabrics and Products of Technical Textiles to enable textile
sector to achieve size and scale and to become competitive. Incentive of Rs. 54.5 crore has been
disbursed in FY 2024-25 to the participant companies under the Scheme.
(c) & (d): To encourage foreign investments in the textiles sector, Government of India has
permitted 100% FDI under the automatic route. Since 2023, textiles sector (including dyed, printed) has
received FDI equity inflow worth USD 659.77mn, details of which are as under:-
(Amount in USD mn)
Year 2023 2024 2025 (till March 2025)
FDI equity inflow 359.18 163.70 136.89
Source: DPIITFurther, to encourage wider collaborations across textile sector, Bharat TEX-2024 was organised by a
consortium of 11 Textiles Export Promotion Councils and supported by the Ministry of Textiles.
Outcome details of Bharat Tex-2024 was released through PIB Press Release on 01.03.2024 and is
available at https://www.pib.gov.in/PressReleseDetail.aspx?PRID=2010506.
(e): Government of India is implementing the PM Mega Integrated Textile Regions and Apparel Park
(PM MITRA) Scheme to develop large scale and integrated world class industrial facilities in the shape
of integrated textile parks to support Indian textiles industry to build scale, reduce logistics costs and
improve its competitiveness. As on date, 07 Textile Parks have been approved under the Scheme in the
States of Tamil Nadu, Gujarat, Karnataka, Madhya Pradesh, Uttar Pradesh, Maharashtra and Telangana.
****