**Executive Summary**
This document provides an answer to a parliamentary question regarding the Indian textile industry's export performance, the government's response to challenges like ICRA's negative outlook, and measures to support the sector, particularly in Tamil Nadu. It details export statistics from April to September 2025 and outlines various schemes and initiatives to boost the industry's competitiveness. Key deadlines include the extension of the RoDTEP scheme until March 31, 2026, and the exemption of import duty on cotton until December 31, 2025.
**Key Points / Main Content**
* **Export Performance:**
* India's textile and apparel exports, including handicrafts, reached US$ 18,235.44 million during April-September 2025, a 0.1% increase compared to the previous year.
* Exports from Tamil Nadu saw an 11.4% growth during the same period.
* **Government Initiatives and Schemes:**
* Regular consultation with exporters, including MSMEs, to assess the impact of US tariffs and other challenges.
* Implementation of schemes like PM MITRA Parks, Production Linked Incentive (PLI), National Technical Textiles Mission, SAMARTH, Silk Samagra-2, National Handloom Development Program, and Comprehensive Handicrafts Cluster Development Scheme.
* **Trade Policy Adjustments:**
* Extension of Export Obligation period under the Advance Authorisation Scheme.
* Revisions to the Production Linked Incentive (PLI) Scheme to address industry challenges and encourage investment.
* Exemption of import duty on cotton until December 31, 2025.
* Rationalization of GST rates across the textile value chain.
* **Financial and Export Support:**
* Implementation of Rebate of State and Central Taxes and Levies (RoSCTL) scheme and Remissions of Duties and Taxes on Exported Products (RoDTEP).
* Extension of RoDTEP scheme until March 31, 2026.
* Approval of Credit Guarantee Scheme for Exporters (CGSE).
* Approval of Export Promotion Mission (EPM) with NIRYAT PROTSAHAN and NIRYAT DISHA components.
* **Trade Agreements and Market Diversification:**
* Signed 15 Free Trade Agreements (FTAs), including the India-UK Comprehensive Economic and Trade Agreement (CETA).
* Formulated a comprehensive 40-country market diversification strategy.
**Impact Analysis**
**Stakeholder: Indian Textile Exporters (including MSMEs)**
* **Impact:** Benefit from various schemes, financial support, and trade agreements aimed at enhancing competitiveness and market access.
* **Action Required:** Stay informed about available schemes and policy changes, leverage financial support, and explore new market opportunities.
**Stakeholder: Textile Industry in Tamil Nadu**
* **Impact:** Particularly benefits from the import duty exemption on cotton and the government's focus on boosting exports from the region.
* **Action Required:** Utilize available resources and incentives to improve competitiveness and capitalize on export opportunities.
**Stakeholder: Government (Ministry of Textiles)**
* **Impact:** Responsible for implementing and monitoring various schemes and policies to support the textile industry.
* **Action Required:** Continue to assess the impact of implemented measures and adapt strategies to address evolving challenges.
**Stakeholder: Financial Institutions**
* **Impact:** Expected to offer credit facilities under the Credit Guarantee Scheme for Exporters (CGSE).
* **Action Required:** Provide additional credit facilities to eligible exporters, and support diversification into new and emerging markets.
Key Entities Referenced
Ministry of Textiles: Primary government body responsible for textile industry policies and initiatives in India.
Production Linked Incentive (PLI) Scheme: Scheme aimed at boosting large-scale manufacturing and enhancing competitiveness in the MMF Fabric, MMF Apparel and Technical Textiles sector.
Rebate of State and Central Taxes and Levies (RoSCTL): Scheme designed to enhance competitiveness in the apparel/garment and made-up sectors by adopting the principle of zero-rated exports.
Tamil Nadu: Indian state with major textile export hubs, significantly impacted by policies related to the textile industry.
Export Promotion Mission (EPM): Government initiative designed to improve access to affordable trade finance and non-financial support for exporters.
LOK SABHA
UNSTARRED QUESTION NO. 278
TO BE ANSWERED ON 02.12.2025
TEXTILE INDUSTRY
278. SHRI S JAGATHRATCHAKAN:
Will the Minister of TEXTILES वस्त्र मंत्री
be pleased to state :
(a) whether the Government has noticed that the ICRA’s downgrade of the outlook for the Indian apparel
export industry from stable to negative, along with the projected decline in revenues and margins and if
so, the measures being taken to address this situation;
(b) the details of steps being taken by the Government to safeguard the overall textile industry in India,
particularly small and medium exporters from the adverse effects of US tariffs; and
(c) the measures being implemented to provide relief to India’s major textile export hubs in Tamil Nadu,
such as Tiruppur, Karur, Erode, Coimbatore and Salem, which are highly dependent on exports and
vulnerable to tariff shocks?
उत्तर
ANSWER
वस्त्र राज् य मंत्री (श्री पबित्र मार्घरे रटा)
THE MINISTER OF STATE FOR TEXTILES
(SHRI PABITRA MARGHERITA)
(a) to (c): The Ministry is regularly monitoring India’s export of Textile & Apparel including
Handicrafts to United States and other countries in the world and t tracking of the impact of US tariffs on
key textile segment. The details of export in Textile Sector from April to September, 2025 as stated
below clearly reflects the stability in the export performance of the Sector during the current financial
year despite global challenges.
India's Global Textile & Apparel Including Handicrafts Exports
(Value in USD Million)
Export to USA Export to Global Export
Rest of the
World
Commodity Apr- Sept Apr-Sept Apr- Sept Apr- Sept Apr- Sept Apr- Sept %
2024 2025 2024 2025 2024 2025 Growth
12,858.69 13,011.27 18,220.54 18,235.44
Total T&A 5,361.85 5,224.16 0.1%
including
Handicrafts
Source- DGCIS
India’s exports of Textiles & Apparel, including handicrafts, stood at US$ 18,235.44 million during
April– September 2025, registering a marginal but positive growth of 0.1% over the corresponding
period of the previous year (US$ 18,220.54 million).Further, the export of Textiles & Apparel, including handicrafts from Tamil Nadu is as under:
Commodity April-Sep 2024 April -Sep 2025 % Growth
Total T&A including 3,975.04 4,078.06 2.6%
Handicrafts
Source: DGCIS (Value in USD Million)
The total exports of Textiles & Apparel (incl handicrafts) from Tirupur, Karur, Erode, Coimbatore and
Salem has shown a growth of 11.4% during the period Apr-Sep 2025 compared to corresponding period
of previous year.
The Ministry is in regular consultation with exporters including MSMEs to assess the impact of US tariff
on India’s textiles & apparel export and other challenges. The Ministry has convened two wide-ranging
consultative meetings with large as well as Micro, Small and Medium (MSME) textile exporters from
across the textile and apparel value chain at various levels.
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 (largest textile exporting state) and it's main clusters.
(1) The major schemes/initiatives include PM Mega Integrated Textile Regions and Apparel (PM
MITRA) Parks Scheme to create a modern, integrated, world class textile infrastructure; 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
(2) Export Obligation (EO) period under the Advance Authorisation Scheme for inputs falling under
mandatory Quality Control Order (QCO) in the textile sector has been extended from six (6) months to
eighteen (18) months.
(3) The Government has brought key revisions to the Production Linked Incentive (PLI) Scheme for
MMF Apparel, MMF Fabrics, and products of Technical Textiles to address industry challenges,
enhance ease of doing business, encourage fresh investments in the sector etc. The Revisions include
Expansion of Eligible Products, relaxation from setting up new companies, reduction in minimum
threshold of investment and incremental turnover Criteria. The revision aims to reduce entry barriers and
financial thresholds, enabling faster execution.
(4) The Government has exempted import duty on cotton under HS 5201 upto 31.12.2025 for reducing
the input material costs for the textile industry, ensuring adequate supply and improving export
competitiveness and enhancing overall industry efficiency. This step is expected to very useful for the
cotton based textile exporting Industry of Tamil Nadu particularly from Tiruppur.
(5) The Government has rationalized the GST rate across the textile value chain to remove structural
anomalies, reduce costs, boost demand, support exports and sustain jobs.(6) 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 zero-
rated 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. Under
RoSCTL, more than 15,000 exporters have benefitted from rebates on embedded taxes during FY 2024-
25.
(7) The RoDTEP Scheme has also been extended till 31.03.2026 to provide extended support to the large
as well as small scale exporters.
(8) India has signed 15 Free Trade Agreements (FTAs), including the India-UK Comprehensive
Economic and Trade Agreement (CETA) which was signed on 24 July, 2025. These FTAs aim to reduce
tariff and non-tariff barriers, simplify procedures, and address structural issues to make Indian Exporters
more competitive in partner markets.
(9) Further, the Ministry has formulated a comprehensive 40-country market diversification strategy,
identifying high-potential global destinations for Indian textile exports. A structured and targeted
outreach in these markets—supported by coordinated efforts of Export Promotion Councils (EPCs),
industry delegations, and Indian Missions abroad—aims to reduce market concentration risks, enhance
India’s export share, and establish a more resilient and sustainable global footprint for the Indian textile
industry.
(10) The Government has approved Credit Guarantee Scheme for Exporters (CGSE) for providing
100% credit guarantee coverage by National Credit Guarantee Trustee Company Limited (NCGTC) to
Member Lending Institutions (MLIs) for extending additional credit facilities upto Rs.20,000 crore to
eligible exporters, including MSMEs. The Scheme aims to enhance the global competitiveness of Indian
exporters and support diversification into new and emerging markets.
(11) The Government has approved the Export Promotion Mission (EPM) which is anchored in a
collaborative framework involving the Department of Commerce, Ministry of MSME, Ministry of
Finance, and other key stakeholders including Financial Institutions, Export Promotion Councils,
Commodity Boards, industry associations, and state governments.
The NIRYAT PROTSAHAN component of the scheme focuses on improving access to affordable trade
finance for MSMEs through a range of instruments such as interest subvention, export factoring,
collateral guarantees, credit cards for e-commerce exporters, and credit enhancement support for
diversification into new markets.
The NIRYAT DISHA component focuses on non-financial enablers that enhance market readiness and
competitiveness, including export quality and compliance support, assistance for international branding,
packaging, and participation in trade fairs, export warehousing and logistics, inland transport
reimbursements, and trade intelligence and capacity-building initiatives. EPM consolidates key export
support schemes such as the Interest Equalisation Scheme (IES) and Market Access Initiative (MAI),
aligning them with contemporary trade needs.
****