Executive Summary:
This document addresses Lok Sabha Starred Question No. 369 regarding the textile sector's contribution to GDP. It outlines government initiatives to boost the textile and apparel sectors, establish India as a global hub for technical textiles, enhance textile exports, address trade barriers, and detail incentives under the Production Linked Incentive (PLI) scheme. Key initiatives include the PM MITRA Parks Scheme, National Technical Textiles Mission (NTTM), and various export promotion schemes. The PLI scheme performance years are from 2024-25 to 2028-29.
Key Points / Main Content:
Government Initiatives to Boost Textile Sector:
* PM Mega Integrated Textile Regions and Apparel (PM MITRA) Parks Scheme: To create modern, integrated, world-class textile infrastructure.
* Production Linked Incentive (PLI) Scheme: Focuses on MMF Fabric, MMF Apparel, and Technical Textiles to boost large-scale manufacturing and enhance competitiveness.
* National Technical Textiles Mission (NTTM): Focuses on Research, Innovation, Development, Promotion, and Market Development.
* SAMARTH Scheme: For Capacity Building in the Textile Sector, providing demand-driven, placement-oriented skilling programs.
* Silk Samagra-2: For comprehensive development of the 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.
Technical Textiles Promotion:
* PLI Scheme for Textiles: Approved outlay of Rs 10,683 crore over five years to promote MMF Apparel, MMF Fabrics, and Technical Textiles production.
* National Technical Textiles Mission (NTTM): Created for 2020-21 to 2025-26 with a fund outlay of Rs.1480 crore.
Enhancing Textile Exports:
* Continuous monitoring of export performance and measures to boost exports in consultation with Textiles Export Promotion Councils and Industry Associations.
* Advance Authorisation Scheme: Allows duty-free import of inputs physically incorporated in export products.
* Rebate of State and Central Taxes and Levies (RoSCTL) scheme: For Apparel/Garments and Made-ups to enhance competitiveness by adopting the principle of zero-rated exports.
* Remission of Duties and Taxes on Exported Products (RoDTEP): Covers textiles products not covered under RoSCTL.
* Financial support to Export Promotion Councils and Trade Bodies: For organizing and participating in trade fairs and exhibitions.
* Bharat TEX 2025: Global Mega Textile Event to showcase the Indian textiles value chain.
* Free Trade Agreements (FTAs): India has signed 15 FTAs to reduce tariff and non-tariff barriers.
Addressing Trade Barriers and Market Access:
* USA and EU are important markets for Indian textile products.
* India has signed FTA with the UK and is actively engaged in FTA negotiations with the EU.
Production Linked Incentive (PLI) Scheme Details:
* Approved outlay of Rs 10,683 crore over five years.
* Part 1: Minimum investment of Rs 300 crore and minimum turnover of Rs 600 crore per company (15% incentive on attaining required turnover in year 1).
* Part 2: Minimum investment of Rs 100 crore and minimum turnover of Rs 200 crore per company (11% incentive on attaining required turnover in year 1).
* Performance years: 2024-25 to 2028-29.
* Incentives provided on achieving threshold investment, turnover, and incremental turnover.
Impact Analysis:
Textile and Apparel Manufacturers:
* Impact: Benefit from schemes like PM MITRA and PLI, leading to enhanced infrastructure, increased production, and improved competitiveness.
* Action Required: Evaluate and apply for relevant schemes (PM MITRA, PLI) based on investment capabilities and strategic goals to leverage incentives and support.
Technical Textile Producers:
* Impact: Benefit from NTTM and PLI schemes, promoting research, development, and market expansion.
* Action Required: Engage with NTTM initiatives and explore PLI scheme opportunities to boost technical textile production and innovation.
Exporters of Textile Products:
* Impact: Benefit from RoSCTL, RoDTEP, and FTAs, reducing trade barriers and enhancing export competitiveness.
* Action Required: Utilize RoSCTL and RoDTEP schemes, and leverage FTAs to access new markets and improve export performance.
Export Promotion Councils and Trade Bodies:
* Impact: Receive financial support for organizing trade fairs and exhibitions, promoting Indian textiles globally.
* Action Required: Actively participate in and organize events like Bharat TEX 2025 to showcase the Indian textiles value chain.
Sericulture and Handloom Sectors:
* Impact: Benefit from Silk Samagra-2 and National Handloom Development Program, providing comprehensive support.
* Action Required: Engage with these programs to enhance sericulture value chain and support the handloom sector.
Key Entities Referenced
Production Linked Incentive PLI Scheme: A government scheme designed to promote domestic manufacturing in India, specifically for textiles, by providing financial incentives based on achieving investment and turnover thresholds.
PM Mega Integrated Textile Regions and Apparel PM MITRA Parks Scheme: A scheme to create modern, integrated, world-class textile infrastructure in India.
National Technical Textiles Mission NTTM: A government initiative to boost technical textiles in India through research, innovation, development, promotion, and market development. It was created for a period from 2020-21 to 2025-26 with a fund outlay of Rs.1480 crore.
SAMARTH Scheme for Capacity Building in Textile Sector: A skilling program in the textile sector with the objective of providing demand-driven, placement-oriented training.
European Union: An economic and political union of European countries. A key export market for Indian textiles, with ongoing FTA negotiations.
United States: A significant market for Indian textile products. Indias total Textile and Apparel export including Handicraft to USA was valued at USD 10.94 billion during the year 2024-25.
United Kingdom: A significant market for Indian textile products. Indias total Textile and Apparel export including Handicraft to UK was valued at USD 2.16 billion during the year 2024-25.
Rebate of State and Central Taxes and Levies RoSCTL: A scheme for Apparel/Garments and Made-ups aimed at enhancing competitiveness by adopting the principle of zero-rated exports.
LOK SABHA
STARRED QUESTION NO. *369
TO BE ANSWERED ON 19.08.2025
TEXTILE SECTOR CONTRIBUTION TO GDP
*369. SHRI S VENKATESAN:
Will the Minister of TEXTILES वस्त्र मंत्री
be pleased to state :
(a) the new initiatives being taken by the Government to boost the Indian textile and apparel sector’s
contribution to the GDP of the country;
(b) the manner in which the Government is planning to make India a global hub for technical textiles;
(c) the measures in place to enhance India’s textile exports and compete with other countries;
(d) whether the Government is addressing trade barriers and ensuring better market access in the
European Union & United States, if so, the details thereof; and
(e) the details of new incentives under the Production Linked Incentive (PLI) scheme proposed to be
taken by the Government for textiles?
उत्तर
ANSWER
वस्त्र राज् य मंत्री (श्री पबित्र मार्घरे रटा)
THE MINISTER OF STATE FOR TEXTILES
(SHRI PABITRA MARGHERITA)
(a) to (e):- A statement is laid on the Table of the House.STATEMENT REFERRED TO IN REPLY TO THE LOK SABHA STARRED QUESTION
NO.*369 FOR 19.08.2025 REGARDING TEXTILE SECTOR CONTRIBUTION TO GDP ASKED
BY SHRI S VENKATESAN
(a): The Government is implementing various schemes/initiatives to boost the Indian textile and
apparel sector and enhance its competitiveness. 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.
(b): The Government is implementing the Production Linked Incentive (PLI) Scheme for Textiles with
an approved outlay of Rs 10,683 crore over a five year period, to promote production of MMF Apparel,
MMF Fabrics and Products of Technical Textiles in the country to enable textile sector to achieve size
and scale and to become competitive.
With a view to boost Technical Textiles in the country, National Technical Textiles Mission (NTTM) was
created for a period from 2020-21 to 2025-26 with a fund outlay of Rs.1480 crore.
India’s exports of technical textiles stood at INR 24,732.68 Crore in FY 2024-25. The exports grew by
15.53% over the last year.
(c)&(d): The Government is continuously monitoring export performance and taking various
measures to boost exports in consultation with Textiles Export Promotion Councils and Industry
Associations.
USA & E.U. are important markets for Indian Textile products . During the year 2024-25, India’s
total Textile and Apparel export including Handicraft to USA was valued at USD
10.94 billion whereas the export of these products to EU and UK was valued at USD 7.6 billion and
USD 2.16 billion respectively . The Government of India has signed FTA with UK and is actively
engaged in FTA negotiations with E.U.
The Government through DGFT runs Advance Authorisation Scheme to allow duty free import of input,
which is physically incorporated in export product . In order to boost export of textiles products, the
Government is implementing the Rebate of State and Central Taxes and Levies (RoSCTL) scheme for
Apparel/Garments and Made-ups in order 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. In addition, Government
provides financial support to various Export Promotion Councils and Trade Bodies for organising andparticipating in trade fairs, exhibitions, buyer-seller meets, etc at national and international levels to boost
exports.
Ministry has supported Export Promotion Councils/Associations in organizing a Global Mega Textile
Event i.e. Bharat TEX 2025 to showcase the strength of the Indian textiles value chain, highlighting the
latest progress/ innovations in textile & fashion Industry and positioning India as the most preferred
destination for sourcing and investment in textile sector.
India has signed 15 Free Trade Agreements (FTAs), including the recently signed CETA between India &
UK. 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.
(e): The Government has approved the Production Linked Incentive (PLI) Scheme for Textiles, with
an approved outlay of Rs 10,683 crore over a five year period, to promote production of MMF Apparel,
MMF Fabrics and Products of Technical Textiles in the country to enable Textile sector to achieve size
and scale and to become competitive. The Scheme has two parts; Part-1 envisages a minimum investment
of Rs.300 crore & minimum turnover of Rs.600 crore per company; and Part-2 envisages a minimum
investment of Rs.100 crore & minimum turnover of Rs.200 crore per company. FY: 2022-23 and FY:
2023-24 were gestation periods under the Scheme. The performance years are from 2024-25 to 2028-29.
Under the PLI scheme, incentive will be provided to the companies on achieving the threshold investment
and threshold turnover and thereafter incremental turnover. Under Scheme Part-1, 15% incentive is
provided on attaining required turnover in year 1. Under Scheme Part-2, 11% incentive is provided on
attaining required turnover in year 1.
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