**Executive Summary**
This document is the answer given by the Minister of State for Textiles to the Lok Sabha question 263, regarding the status of the textile industry. The answer details the industry's contribution to India's economy and employment, governmental steps to boost the sector, and measures to increase investment and exports, with a focus on Uttar Pradesh. The question was to be answered on December 2, 2025.
**Key Points / Main Content**
* **Textile Industry Status and Contribution:**
* The textile industry plays a crucial role in India's economic growth, boosts exports, creates jobs, empowers women, and showcases India's heritage and culture.
* The textile industry contributes approximately 2% of India's GDP and nearly 10% of manufacturing GVA (2023-24).
* The textile industry is one of the largest sources of employment, employing over 45 million people directly.
* **Government Initiatives:**
* The government is implementing various schemes/initiatives to promote the textile sector across India, including Uttar Pradesh.
* Major schemes include the Production Linked Incentive (PLI) Scheme focusing on Man Made Fibre & Apparel and Technical Textiles.
* Other initiatives include National Technical Textiles Mission, SAMARTH, Silk Samagra-2, National Handloom Development Program (NHDP), and National Handicraft Development Program (NHDP).
* **Uttar Pradesh Focus:**
* One PM MITRA park has been finalized in Uttar Pradesh (Lucknow/Hardoi).
* The government has provided grant-in-aid to five powerloom service centers in Uttar Pradesh.
* 1,660 looms in Uttar Pradesh have been upgraded.
* 169 beneficiaries in Uttar Pradesh have been provided total assistance of Rs. 56.52 crores since 2020 under Amended Technology Upgradation Funds Scheme (ATUFS).
* **Export Promotion:**
* The government extended the implementation of the Scheme for Rebate of State and Central Taxes and Levies (RoSCTL) on exports of Apparel/Garments and Made-ups.
* Textiles not covered under RoSCTL are covered under Remissions of Duties and Taxes on Exported Products (RoDTEP).
* Indian Textiles & Apparel including Handicrafts exports, with USD 37.8 Billion is the 6th largest Exporter globally accounting for 4% of the global textiles and apparel trade.
**Impact Analysis**
**Textile Manufacturers/Businesses**
* **Impact:** They can benefit from various government schemes and subsidies aimed at technology upgrades, capacity building, and export promotion.
* **Action Required:** They need to understand the requirements and application processes for schemes like PLI, ATUFS, RoSCTL, and RoDTEP to avail the benefits.
**Textile Workers/Employees**
* **Impact:** The initiatives aim to increase employment opportunities within the textile sector.
* **Action Required:** No specific action is required, but awareness of skilling programs like SAMARTH could lead to career advancement.
**State Government of Uttar Pradesh**
* **Impact:** The state benefits from the establishment of textile parks, modernization of existing facilities, and increased investment, leading to regional economic growth.
* **Action Required:** Continue to support the implementation of central government schemes and provide necessary infrastructure for textile development.
**Exporters**
* **Impact:** Exporters will benefit from schemes aimed at boosting exports and enhancing competitiveness in the global market.
* **Action Required:** Stay informed about changes in export policies and leverage available incentives like RoSCTL and RoDTEP to reduce costs.
Key Entities Referenced
Production Linked Incentive (PLI) Scheme: A scheme focusing on Man Made Fibre & Apparel, and Technical Textiles to boost large scale manufacturing and enhancing competitiveness.
Amended Technology Upgradation Funds Scheme (ATUFS): Scheme for technology upgradation and modernization of the textile sector through capital investment subsidy.
National Technical Textiles Mission: Mission focusing on Research Innovation & Development, Promotion and Market Development, Skilling and Export Promotion in technical textiles.
Uttar Pradesh: Indian state where the government is implementing various schemes related to the textile industry.
Minister of Textiles: The central government ministry responsible for the textile industry.
LOK SABHA
UNSTARRED QUESTION NO. 263
TO BE ANSWERED ON 02.12.2025
STATUS OF TEXTILE INDUSTRY
263. DR. RAJKUMAR SANGWAN:
Will the Minister of TEXTILES वस्त्र मंत्री
be pleased to state :
(a) the current status of the textile industry, and the details of the textile industry's contribution to
industrial production and employment generation along with the steps taken by the Government to
increase employment in the textile industry;
(b) the steps taken by the Government to increase investment and to modernize the weaving and
processing sector and boost exports to expand traditional and local textile industries in the state of Uttar
Pradesh along with the details of funds allocated and spent during the last five years, year-wise; and
(c) the steps taken by the Government to increase the share of Indian textile products globally and the
amount of success the Government has achieved in this regard?
उत्तर
ANSWER
वस्त्र राज् य मंत्री (श्री पबित्र मार्घरे रटा)
THE MINISTER OF STATE FOR TEXTILES
(SHRI PABITRA MARGHERITA)
(a): The Indian Textile and Apparel Industry plays a crucial role in India’s economic growth,
boosting exports, creating jobs, empowering women and showcasing India’s rich heritage and culture.
As per the latest figures from National Accounts Statistics, the textile industry contributes
approximately 2% of country’s GDP and nearly 10% of manufacturing GVA during 2023-24. The
textile industry is one of the largest sources of employment generation in the country, employing over
45 million people directly.
In addition, the Government of India is implementing various schemes/initiatives aimed at promoting
the textile sector pan India including in Uttar Pradesh. The major schemes/initiatives include
Production Linked Incentive (PLI) Scheme focusing on Man Made Fibre & 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, Skilling and Export Promotion; 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 (NHDP) and National Handicraft Development Program (NHDP) for end to
end support for handloom and handicraft sectors etc.(b): The Government has finalized one site in Uttar Pradesh (Lucknow/Hardoi) for setting up PM
MITRA park. Further, the Government has provided grant in aid to five Powerloom service centers in
the State of UP viz. Gorakhpur, Kanpur, Meerut, Varansi and Tanda, and approximately 1,660 looms
have also been upgraded. Under Amended Technology Upgradation Funds Scheme (ATUFS) for
technology upgradation and modernization of textile sector by way of providing one time Capital
Investment Subsidy for eligible investment in benchmarked textile machinery, 169 beneficiaries have
been provided total assistance of Rs. 56.52 crores in the state of Uttar Pradesh since 2020. Details on
subsidy disbursed under ATUFS in processing and weaving segment in the state of Uttar Pradesh
during the last five year is provide at Annex-I.
(c): In order to boost export of textiles products, Government extended implementation of scheme
for Rebate of State and Central Taxes and Levies (RoSCTL) on exports of Apparel/Garments and
Made-ups. Further, textiles products not covered under the RoSCTL are covered under Remissions of
Duties and Taxes on Exported Products (RoDTEP) along with other products. Indian Textiles &
Apparel including Handicrafts exports with USD 37.8 Billion is the 6th largest Exporter globally which
account 4% of the global textiles and apparel trade.
Annex-I
Year-wise Subsidy Disbursed under ATUFS in Processing Segment and weaving segment in Uttar Pradesh during the last five
year
2025-26
2021-22 2022-23 2023-24 2024-25 (Till 26.11.2025) Total
Subsidy DisAmount Subsidy DAmount oSubsidy DAmount oSubsidy DAmount of Subsidy DisbAmount of Subsidy DisAmount of
S N bursed in o f isbursed f Subsidy isbursed if Subsidy isbursed iSubsidy ursed in no. S ubsidy bursed in S ubsidy (Rs.
Particulars
o. no. of Cases Subsidy in no. of ( Rs. In n no. of ( Rs. In n no. of ( Rs. In Cr.) of Cases (Rs. In Cr.) no. of Cases In Cr.)
(Rs. In C ases Cr.) Cases Cr.) Cases
Cr.)
Processing
1
Segment 2 0.12 4 1.18 5 0.86 5 0.56 0 0.00 16 2.72
Weaving
2
Segment 4 0.47 4 0.41 15 1.91 2 0.35 0 0.00 25 3.15
****